5 Best REIT ETFs to Buy in Q2 2025

Trade your favourite markets with our top-rated broker, eToro.

eToro 4.6/5

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Visit site

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

REIT ETFs are low-cost and low-risk alternatives to investing directly in physical property assets. These funds provide consistent and high dividends that appeal to long-term investors as a retirement income stream. This beginners’ guide has selected the best of the current market for you to place the right investment.

What are the top REIT ETFs to buy?

Our analysts have selected five of the best REIT ETFs for this year as displayed in the table below. Continue scrolling further to learn more about each in turn.

1. Vanguard Real Estate Index Fund ETF (NYSEARCA: VNQ)

• Current price: $83.32
• AUM: $61.42 billion
• Annual expense ratio: 0.13%
• YTD performance: -5.71%
• Annual dividend yield: 4.13%

Vanguard Real Estate Index Fund ETF stands as a cornerstone in the realm of REIT ETFs, boasting a substantial $61.42 billion in assets under management. VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index with precision, investing primarily in equity REITs across diverse market segments.

Its portfolio includes a comprehensive mix of real estate sectors, from industrial and healthcare to retail and telecom, providing investors with broad exposure to the U.S. real estate market’s potential for income and capital appreciation.

VNQ’s appeal lies not only in its robust diversification but also in its historically high dividend yield, currently at 4.13%. Despite recent market challenges reflected in its year-to-date performance of -5.71%, VNQ remains a stalwart choice for those looking to capitalize on the long-term stability and income generation potential of REIT investments.

However, prospective investors should consider VNQ’s tilt towards small-cap REITs, which constitute a significant portion of its holdings. While this strategy enhances potential growth opportunities, it also introduces some volatility, particularly in uncertain market conditions.

2. Schwab US REIT ETF (NYSEARCA: SCHH)

• Current price: $19.61
• AUM: $6.30 billion
• Annual expense ratio: 0.07%
• YTD performance: -5.31%
• Annual dividend yield: 3.32%

Schwab US REIT ETF (SCHH) stands out with its exceptionally low expense ratio of 0.07%, making it one of the most cost-effective options in the REIT ETF space. This passively managed fund tracks the Dow Jones Equity All REIT Capped Index, emphasizing U.S. real estate investment trusts (REITs) excluding mortgage and hybrid REITs.

With $6.30 billion in assets under management (AUM), SCHH offers exposure to a diversified portfolio of over 120 holdings. Top holdings like Prologis Inc., American Tower Corp., and Equinix Inc. underscore its strategic focus on key players in sectors such as industrial, telecom, and data centers.

Despite a challenging YTD performance of -5.31%, SCHH remains resilient, supported by its robust dividend yield of 3.32% annually. The ETF’s broad market coverage and minimal expense burden make it an attractive choice for investors seeking stable income and long-term growth potential in the real estate sector.

3. iShares Core US REIT ETF (NYSEARCA: USRT)

• Current price: $52.49
• AUM: $2.39 billion
• Annual expense ratio: 0.08%
• YTD performance: -3.32%
• Annual dividend yield: 3.26%

With 135 holdings and a concentrated focus on equity REITs, iShares Core US REIT ETF distinguishes itself through its efficient diversification strategy. This ETF tracks the FTSE Nareit Equity REITs Index, offering investors broad exposure to U.S. real estate equities across various sectors.

With 135 holdings, USRT maintains a diversified portfolio that includes growth and value stocks, catering to investors seeking income and long-term growth potential in the real estate market.

USRT maintains a balanced portfolio composition with over 48% of its assets concentrated in its top 10 holdings, emphasizing stability and strategic investment in key industry leaders. This focus on robust sector representation, including significant allocations to industrial and multi-family residential REITs, underscores USRT’s commitment to providing comprehensive market exposure while mitigating sector-specific risks.

For investors seeking a blend of growth potential and income stability within the U.S. real estate market, USRT remains a compelling choice amidst evolving economic landscapes and market uncertainties.

4. Real Estate Select Sector SPDR Fund (NYSEARCA: XLRE)

• Current price: $37.76
• AUM: $5.92 billion
• Annual expense ratio: 0.09%
• YTD performance: -5.74%
• Annual dividend yield: 3.60%

The Real Estate Select Sector SPDR Fund offers investors a targeted approach to the real estate sector through its alignment with the Real Estate Select Sector Index, which includes all real estate stocks within the S&P 500.

XLRE stands out with its well-rounded portfolio of 34 stocks, led by top holdings such as Prologis, American Tower Corp, and Equinix. These companies represent a significant portion of the ETF’s assets, emphasizing logistics, data centers, and telecom infrastructure.

XLRE’s concentration in these high-growth segments underscores its potential for capital appreciation amid technological advancements and increasing demand for digital infrastructure.

XLRE’s market capitalization-weighted approach ensures that larger, more established companies dominate its portfolio, mitigating some of the volatility associated with smaller-cap REITs.

As investors navigate through economic uncertainties and shifting market conditions, XLRE presents a compelling case for those looking to capitalize on the enduring value of real estate investments within a structured, sector-focused ETF framework.

5. SPDR Dow Jones REIT ETF (NYSEARCA: RWR)

• Current price: $91.39
• AUM: $1.38 billion
• Annual expense ratio: 0.25%
• YTD performance: -4.12%
• Annual dividend yield: 3.85%

The SPDR Dow Jones REIT ETF stands out with a focus on stability and broad market exposure within the U.S. real estate sector. Unlike some peers that may tilt towards specific sub-sectors or market segments, RWR maintains a balanced approach across traditional real estate investments.

Compared to its counterparts, such as Vanguard Real Estate ETF (VNQ), RWR distinguishes itself through a more conservative investment strategy aimed at maintaining broad market exposure. This strategic positioning aligns with investors’ preferences for stable, long-term growth in the real estate sector.

RWR’s quarterly dividend distribution of $0.90 per share and an annual yield of 3.85% further highlight its commitment to providing consistent returns, making it a resilient choice in an evolving market environment.

Where to buy the best REIT ETFs

Registering with an online broker is key for investing in an ETF. They are like individual stocks, you can sell or buy ETFs as you wish. The table below features our preference of the best brokers that offer ETFs REIT.

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

Visit site

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

4.5

Plus500

Min. Deposit $100

Fees From 2%

No. assets 2800+

Demo account Yes

Visit site

Plus500 review

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.

Best REIT ETFs

Min. Deposit n/a

Fees -

No. assets n/a

Demo account -

Visit site

What is a REIT ETF?

It’s an exchange traded fund that holds shares in the real estate sector. REIT ETFs provide investors more affordable exposure to the industry as compared to other options. These funds traditionally focus on real estate investment trusts (securitised portfolios of real estate properties).

REIT ETFs can prove ideal for long-term investors as they provide a passive income stream in addition to mainstream stock liquidity. This is because investing in these funds allows you to receive dividends. Although you are likely to gain less of a return than you would from a direct investment in property, there is lower risk associated with REIT ETFs.

Are REIT ETFs a good investment?

Yes, as REIT ETFs often outperform the market. These funds have historically delivered competitive total returns based on capital appreciation in the long run. Therefore, REIT ETFs are intended for long-term investors – you must have patience to hold out for a return in your investment. 

These funds also offer ideal diversification for a long-term portfolio. Due to the low-risk nature of holdings, REIT ETFs can hedge against overall risk and increase returns. Additionally, high and steady dividends provide a stable passive income stream that can prove a safety net for retirement.

The best part is that REITs are low-risk – when the price of other investments go down, the price of these ETFs tends to go up. This is because unlike other stocks, they are correlated with the returns of other equities and fixed-income investments. Do your own due diligence, use the links below to best place your investment in REIT ETFs.

Methodology: How we choose the best REIT ETFs

At Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.

• Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
• ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
• Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
• Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
• Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.