Best REIT ETFs (2026)
Which real-estate fund to hold for income and diversification — 11 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.
Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.
Top Picks Right Now
Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.
At a Glance
Each superlative is measured within this group of 11 funds, not across the whole market.
All 11 Funds Ranked
| Fund | Category | Cost | Yield | 1Y | 3Y | Volatility | Max DD | Sharpe | AUM | Score | Grade |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 USRTiShares Core U.S. REIT ETF | Real Estate | 0.08% | 2.57% | +23.8% | +44.4% | 14.1% | -18.7% | 1.34 | $4.4B | 71.8 | B |
| 2 RWRState Street SPDR Dow Jones REIT ETF | Real Estate | 0.25% | 2.92% | +24.9% | +43.4% | 14.4% | -18.9% | 1.38 | $1.8B | 68.8 | B |
| 3 SCHHSchwab U.S. REIT ETF | Real Estate | 0.07% | 2.79% | +17.7% | +37.1% | 14.1% | -17.8% | 0.90 | $11.1B | 65.3 | B |
| 4 VNQVanguard Real Estate Index Fund ETF Shares | Real Estate | 0.13% | 3.38% | +13.8% | +33.2% | 14.1% | -17.4% | 0.62 | $71.3B | 63.6 | C |
| 5 REZiShares Residential and Multisector Real Estate ETF | Real Estate | 0.48% | 1.99% | +20.1% | +45.3% | 15.7% | -17.6% | 0.96 | $875M | 59.9 | C |
| 6 XLREState Street Real Estate Select Sector SPDR ETF | Real Estate | 0.08% | 3.19% | +10.9% | +33.3% | 14.4% | -16.6% | 0.41 | $8.1B | 58.3 | C |
| 7 FRELFidelity MSCI Real Estate Index ETF | Real Estate | 0.08% | 3.29% | +13.3% | +32.9% | 14.1% | -17.5% | 0.59 | $1.5B | 57.1 | C |
| 8 IYRiShares U.S. Real Estate ETF | Real Estate | 0.38% | 1.78% | +11.7% | +31.3% | 14.2% | -17.4% | 0.47 | $4.7B | 54.2 | C |
| 9 VNQIVanguard Global ex-U.S. Real Estate Index Fund ETF Shares | Real Estate | 0.12% | 4.81% | +1.6% | +22.1% | 13.8% | -16.4% | -0.24 | $3.7B | 49.4 | D |
| 10 REMiShares Mortgage Real Estate Capped ETF | Real Estate | 0.48% | 8.79% | +5.6% | +15.2% | 17.1% | -21.9% | 0.04 | $548M | 41.2 | D |
| 11 MORTVanEck Mortgage REIT Income ETF | Real Estate | 0.43% | 12.75% | +4.3% | +15.0% | 16.9% | -21.9% | -0.04 | $400M | 40.1 | D |
Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.
What Makes a Good Fund Here
REIT funds pay high distributions because REITs must pass through most of their income, but those distributions are usually taxed as ordinary income — which makes account placement unusually important here.
The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.
Head-to-Head Comparisons
Full metric-by-metric breakdowns for the closest calls in this group.
Frequently Asked Questions
What is the best REIT ETF?
USRT leads the 11 real-estate funds tracked with a score of 71.8 (B). SCHH is the cheapest at 0.07%.
Are REIT ETFs good for income?
They typically yield more than the broad market, but REIT distributions are generally taxed as ordinary income rather than at qualified-dividend rates, so they are often better held in a tax-advantaged account.
Compare any of these funds directly
Side-by-side metrics, holdings overlap and return correlation for any pair.