By asset class

Real-estate (REIT) ETFs

A simple way to own a slice of many properties, through the companies that rent them out.

See Real-estate (REIT) ETFs New to ETFs? →

Property companies, bundled into one fund

What Real-estate (REIT) ETFs are

A REIT (Real Estate Investment Trust) is a company that owns and rents out property, think apartment blocks, warehouses, offices, shopping centres or data centres. A real-estate ETF buys shares in many REITs at once, so one fund gives you a small stake in hundreds of buildings across different places.

In many countries REITs are required to pass most of their rental income back to shareholders, which is why these funds are often held for their dividends (regular cash payments). They can also add variety to a portfolio, since property does not always move in step with ordinary company shares.

It helps to stay level-headed too. Property is still tied to the wider economy, and REIT prices can fall when interest rates rise or when demand for buildings drops, so they can be bumpy despite the income.

At a glance

Common indexesFTSE EPRA Nareit Developed / Global, Dow Jones Global Select REIT

Typical holdings~100-350 property companies

Typical fee (TER)~0.15%-0.60% per year

Defining traitREITs pass most rent to shareholders, so dividends tend to be higher

Risk levelMedium; sensitive to interest rates and property cycles

Why beginners look here

Regular income

REITs are built to pass most of their rent to shareholders, so these funds often pay regular dividends (though the amount can still vary year to year).

Adds diversification

Property can behave differently from ordinary shares and bonds, spreading your money across more types of asset.

Rate-sensitive, be aware

Because REITs often borrow to buy buildings, rising interest rates can weigh on their prices, the trade-off for the income.

What to look for

Global vs single-country A worldwide REIT fund spreads risk across many markets, while one focused on a single country ties you to that local property market.

The fee (TER) Compare the yearly cost, called the total expense ratio, since small differences add up over the years.

Fund size and age Larger, longer-running funds, measured by assets under management, tend to be easier to buy and sell.

Distributing vs accumulating Decide whether you want dividends paid out to you (distributing) or automatically reinvested inside the fund (accumulating).

Popular Real-estate (REIT) ETFs

A few of the largest, pulled live from the screener — an example, not a recommendation.

Good to know

What exactly is a REIT?

A Real Estate Investment Trust is a listed company that owns income-producing property and passes most of the rent to its shareholders as dividends.

Do I actually own buildings?

No, you own shares in the companies that own the buildings, so you get exposure to property without being a landlord yourself.

Why do REIT funds move when interest rates change?

REITs often borrow to buy property, so higher rates raise their costs and make their dividends look less attractive next to savings, which can push prices down.