29 Dec, 2022

7 Best REIT ETFs to Buy for 2023

These ETFs offer low-cost exposure to a diversified portfolio of REITs in a single ticker - REIT ETFs are a great way to secure diversified, stable income.

Vanguard Real Estate ETF (ticker: VNQ)

With $36 billion in assets under management, or AUM, VNQ is currently the most popular REIT ETF among U.S. investors. This ETF tracks the MSCI US Investable Market Real Estate 25/50 Index, which holds a portfolio of U.S.-listed REITs.

iShares Core U.S. REIT ETF (USRT)

A potential tax-loss harvesting partner for VNQ is USRT, which tracks the FTSE Nareit Equity REITs index. USRT currently has 140 holdings and is different from VNQ in that it offers pure-play REIT exposure

Vanguard Global ex-U.S. Real Estate ETF (VNQI)

REITs can be found around the world. Investing in international REITs from countries like Canada, Japan, Australia, the U.K., China, Germany, France and more can insulate investors from falling U.S. real estate prices.

Real Estate Select Sector SPDR Fund (XLRE)

State Street Global Advisors currently manages a lineup of 11 "Select Sector" ETFs, each corresponding to one of the 11 stock market sectors represented in the S&P 500. Investors interested in indexing the real estate sector of the S&P 500 can buy XLRE, which holds 31 stocks.

Global X SuperDividend REIT ETF (SRET)

Many income-oriented investors buy REITs for their high yields. A great way to target the highest-yielding REITs within a single ticker is via SRET. This ETF invests in 30 of the highest-yielding REITs around the world and has made monthly distributions for seven years running.

Invesco S&P 500 Equal Weight Real Estate ETF (EWRE)

Some investors may not like the market-cap-weighted methodology of passive index REIT ETFs as it can cause them to be skewed toward a handful of large-cap REITs. To avoid this, investors can buy equally weighted ETFs like EWRE.

iShares Global REIT ETF (REET)

Investors looking to buy a globally diversified portfolio of REITs can pair VNQ with VNQI, but this approach requires periodic rebalancing. For a true hands-off, all-in-one approach to global REIT investing, investors can buy REET. This ETF tracks the FTSE EPRA Nareit Global REITs Net Total Return Index, which holds 349 REITs from U.S.