REIT ETFs
3 ETFs · AUM: $79.51B
REIT ETFs focus specifically on real estate investment trusts, companies that own, operate, or finance income-producing real estate. REITs are required by law to distribute at least 90% of their taxable income to shareholders, making REIT ETFs among the highest-yielding equity funds available. These trusts span property types including residential, commercial, industrial, healthcare, data centers, and cell towers.
Top REIT ETFs include VNQ (Vanguard Real Estate ETF), which is the dominant REIT fund covering a broad range of U.S. equity REITs, SCHH (Schwab U.S. REIT ETF), which offers one of the lowest expense ratios and excludes mortgage REITs for a purer equity REIT focus, and USRT (iShares Core U.S. REIT ETF), which specifically targets equity REITs and excludes specialized and mortgage REITs.
REIT ETFs are well suited for investors who want consistent income and real estate exposure in a liquid, diversified format. Modern REIT portfolios have shifted heavily toward digital infrastructure, with data centers and cell tower REITs now among the largest holdings. This evolution means today's REIT ETFs offer exposure to secular growth trends alongside traditional property income. Interest rate sensitivity is the primary risk factor, as rising rates increase REIT borrowing costs and make their yields less attractive relative to bonds. REIT dividends are generally taxed as ordinary income, so holding these funds in tax-advantaged accounts can be beneficial.