Buying real estate ETFs is an easy and affordable path to exposing your portfolio to the real estate market. Since REITs are required by law to pay out 90% of their taxable income annually, these funds are a good source of income for investors.
A combination of rising interest rates, Covid-19-related work at home policies and high inflation have hit the real estate industry hard since the end of 2021. But don’t let the recent softness in the real estate market keep you from considering this important asset class.
As the professional services giant PwC notes in a report, many real estate professionals plan to “ride out the current slump and reposition their firms for another period of sustained growth and strong returns.” The principles of supply and demand favor long-term rising prices for the limited supply of land and property.
Our list of the best real estate ETFs includes a variety of types of U.S. REITs, such as those specializing in offices, apartment buildings, warehouses, retail centers, medical facilities, data centers, cell towers, infrastructure and hotels.
