Explore the top REIT ETFs for 2024, offering diversified exposure to real estate sectors. These funds provide strong income potential, risk mitigation, and easy access to real estate investments without direct property ownership, making them ideal for building resilient portfolios.

Top Real Estate ETF Picks for 2024

Real Estate Investment Trusts (REITs) are essential for building diversified investment portfolios, either in fixed income or equities. They help reduce overall investment risk while offering attractive dividend yields and growth potential. REITs serve as effective hedges against inflation and provide steady income streams. Investors can choose to buy individual REIT stocks or diversify through REIT-focused ETFs and mutual funds. Unlike direct property investment, REIT ETFs spread investments across multiple companies, minimizing risks related to leverage and property management.

This review highlights the leading REIT ETFs in 2024 based on an analysis of their assets under management. These funds offer exposure to various real estate sectors:

Vanguard Real Estate ETF (VNQ)
With over $63 billion in assets, VNQ tracks the MSCI US REIT Index, focusing on high-yield assets. It features a low expense ratio of 0.12%, a PE ratio of 7.48, and a dividend yield of 4.43%, providing steady total returns.

iShares U.S. Real Estate ETF (IYR)
IYR aims to replicate the Dow Jones US Real Estate Index, investing mainly in REITs of varied sizes. It holds approximately $4.78 billion in assets, with an expense ratio of 0.44%, a PE of 6.81, and a yield of 4.06%, performing well in 2024.

iShares Cohen & Steers REIT ETF (ICF)
ICF tracks the Cohen & Steers Realty Majors Index and mainly invests in large REITs that are potential merger targets. It manages around $3.25 billion in assets, with an expense ratio of 0.35%, a PE of 12.87, and a dividend yield of 3.85%, showing consistent growth.

Schwab U.S. REIT ETF (SCHH)
SCHH tracks the Dow Jones US Select REIT Index and may include some non-index assets. It has approximately $3.29 billion in assets, a low expense ratio of 0.07%, and offers a dividend yield of 2.64%, despite slight recent declines.

These ETFs provide a convenient way to diversify investment portfolios with real estate exposure without substantial capital or management responsibilities. They are valuable options for income generation and risk management in 2024.