Investing in real estate is a good option for investors seeking a lucrative return on their capital. Along with impressive returns, investing in real estate helps to diversify one’s portfolio as well. Investing directly in real estate could prove lucrative, but is risky as well. One alternative to this is investing in REITs (real estate investment trusts). With hundreds of REITs to choose from, many go for an easy route of investing in them through ETFs, which allows them to invest in many REITs with a single investment and at a low cost. If you are also interested in investing in real estate, then to help you choose, detailed below are the top ten real estate ETFs.
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Top Ten Real Estate ETFs
We have taken the last one-year return data (from U.S. News) to come up with the top ten real estate ETFs. Following are the top ten real estate ETFs:
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Invesco S&P 500® Equal Wt Real Estt ETF (EWRE, 41%)
EWRE’s objective is to track the performance of the S&P 500 Equal Weight Real Estate Index. Generally, the fund invests at least 90% of its assets in securities that are part of the underlying index. EWRE has an expense ratio of 0.40%. It has a year-to-date return of 18.64% and $30.65 million in net assets.
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ALPS REIT Dividend Dogs ETF (RDOG, 44%)
RDOG aims to track the investment results of S-Network REIT Dividend Dogs Index. Normally, the fund invests a minimum of 90% of its net assets in common stocks and other equity securities included in the underlying index. RDOG has an expense ratio of 0.35%. It has a year-to-date return of 13.40% and $29.84 million in net assets.
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Nuveen Short-Term REIT ETF (NURE, 46%)
NURE seeks to track the performance of the Dow Jones U.S. Select Short-Term REIT Index. It generally invests a minimum of 80% of its net assets in REITs. NURE has an expense ratio of 0.35%. It has a year-to-date return of 17.54% and $31.56 million in net assets. Invitation Homes Inc is the top holding of the fund.
KBWY aims to replicate the performance of the KBW Nasdaq Premium Yield Equity REIT Index. It invests a minimum of 90% of its assets in the securities included in the underlying index. KBWY has an expense ratio of 0.35%. It has a year-to-date return of 11.81% and $324.51 million in net assets. Geo Group, Inc. is the top holding of the fund.
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Global X SuperDividend REIT ETF (SRET, 53%)
This ETF tracks the performance of the Solactive Global SuperDividend REIT Index. SRET invests a minimum of 80% of its total assets in the securities included in the index, as well as in related ADR (American Depositary Receipts) and GDRs (Global Depositary Receipts). SRET has an expense ratio of 0.58%. It has a year-to-date return of 11.37% and has $481.50 million in net assets.
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Janus Long-Term Care ETF (OLD, 53%)
OLD aims to track the performance of the Solactive Long-Term Care Index. This index, in turn, tracks the performance of the companies that offer long-term care to the ageing population, including those that own or operate senior living facilities, senior housing, and more. OLD has an expense ratio of 0.30%. It has a year-to-date return of 7.04% and $25.72 million in net assets.
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IQ US Real Estate Small Cap ETF (ROOF, 57%)
ROOF tries to match the price and yield performance of the IQ U.S. Real Estate Small Cap Index. It invests at least 80% of its assets in the securities included in its benchmark index. ROOF has an expense ratio of 0.69%. It has a year-to-date return of 15.87% and $50.82 million in net assets. Qts Realty Trust Inc is the top holding of the fund.
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Fundamental Income Net Lease Rl Estt ETF (NETL, 58%)
NETL works to align its performance closely to the Fundamental Income Net Lease Real Estate Index. This index is comprised of companies that get a minimum of 85% of their earnings from real estate operations. NETL has an expense ratio of 0.60%. It has a year-to-date return of 10.31% and $88.05 million in net assets. Realty Income Corp. is the top holding of the fund.
REM aims to copy the performance of the FTSE NAREIT All Mortgage Capped Index. Generally, the fund invests a minimum of 90% of its assets in the securities that are part of the index. Also, it may invest up to 10% in futures, options and swap contracts. REM has an expense ratio of 0.48%. It has a year-to-date return of 13.65% and $1.54 billion in net assets.
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VanEck Vectors Mortgage REIT Income ETF (MORT, 87%)
MORT aims to replicate the performance of the MVIS US Mortgage REITs Index. Normally, the fund invests a minimum of 80% of its assets in the securities included in the fund’s benchmark index. MORT has an expense ratio of 0.41%. It has a year-to-date return of 14.21% and $299.41 million in net assets. The top holding of the fund is Annaly Capital Management Inc.
