What is the highest volume real estate ETF?
The largest REIT ETF is the Schwab U.S. REIT ETF SCHH with $6.35B in assets. In the last trailing year, the best-performing REIT ETF was PFFR at 17.06%. The most recent ETF launched in the REIT space was the iREIT - MarketVector Quality REIT Index ETF IRET on 03/06/24.
With $6.4 billion in net assets, the first REIT ETF on the list is also one of the largest and most prominent. SCHH is a passively managed index ETF based on the Dow Jones Equity All REIT Capped Index. SCHH does not hold any mREITS or hybrid REITs (hybrid REITs invest in both equity REITs and mREITs).
| ETF | Price | Volume |
|---|---|---|
| SPY SPDR S&P 500 ETF Trust | $510.85 | 92.56M |
| QQQ Invesco QQQ Trust | $438.27 | 53.66M |
| IWM iShares Russell 2000 ETF | $198.69 | 35.39M |
| IEF iShares 7-10 Year Treasury Bond ETF | $92.31 | 11.68M |
The Bottom Line. A REIT ETF allows an investor to gain exposure to the real estate market, without going to the trouble of buying and managing property. These funds also gain exposure to a wide basket of real estate properties, without relying on the performance of any one REIT.
| Symbol | Name | 5-Year Return |
|---|---|---|
| XMHQ | Invesco S&P MidCap Quality ETF | 17.62% |
| VUG | Vanguard Growth ETF | 17.48% |
| QTEC | First Trust NASDAQ-100 Technology Sector Index Fund | 17.46% |
| COPX | Global X Copper Miners ETF | 17.33% |
The value of a REIT is based on the real estate market, so if interest rates increase and the demand for properties goes down as a result, it could lead to lower property values, negatively impacting the value of your investment.
An ETF gives you an affordable way to follow the stock market or a particular part of the market. While REITs provide the stability and robust returns of real estate.
| ETF | Assets Under Management | Expense Ratio |
|---|---|---|
| Vanguard Information Technology ETF (VGT) | $70 billion | 0.10% |
| VanEck Semiconductor ETF (SMH) | $16.3 billion | 0.35% |
| Invesco S&P MidCap Momentum ETF (XMMO) | $1.6 billion | 0.34% |
| SPDR S&P Homebuilders ETF (XHB) | $1.8 billion | 0.35% |
Volume and market impact
The higher the volume, the better. For example, if XYZ trades, on average, 10 million shares per day, it will be easier to trade than something that trades 100 shares per day.
Under the Investment Company Act, private investment funds (e.g. hedge funds) are generally prohibited from acquiring more than 3% of an ETF's shares (the 3% Limit).
Do REITs beat S&P 500?
REITs are also attractive thanks to their market-beating returns. During the past 25 years, REITs have delivered an 11.4% annual return, crushing the S&P 500's 7.6% annualized total return in the same period.
Real estate investment trusts have historically outperformed the S&P 500 -- and with less volatility, to boot. Real estate investment trusts (REITs) can be excellent investments for those looking to generate passive income.
More than a year of interest rate hikes by the Federal Reserve pushed down returns on real estate investment trusts, or REITs. While higher rates negatively impacted nearly every sector of the economy in 2022 and most of 2023, real estate was hit especially hard.
| Symbol | ETF Name | 10y Chg 4-2-24 |
|---|---|---|
| SOXX | iShares Semiconductor ETF | 873% |
| PSI | Invesco Semiconductors ETF | 786% |
| META | Roundhill Ball Metaverse ETF | 717% |
| XSD | SPDR S&P Semiconductor ETF | 617% |
| Ticker | Fund name | 5-year return |
|---|---|---|
| SOXX | iShares Semiconductor ETF | 30.70% |
| XLK | Technology Select Sector SPDR Fund | 24.57% |
| IYW | iShares U.S. Technology ETF | 24.09% |
| FTEC | Fidelity MSCI Information Technology Index ETF | 22.79% |
The best-performing ETF in the last 10 years was VanEck Semiconductor ETF (SMH).
Can You Lose Money on a REIT? As with any investment, there is always a risk of loss. Publicly traded REITs have the particular risk of losing value as interest rates rise, which typically sends investment capital into bonds.
In exchange for more ongoing income, REITs have less to invest for future returns than a growth mutual fund or stock. “REITs are better for short-term cash flow and income versus long-term upside,” says Stivers.
Because REITs use debt to purchase investments, rising interest rates could mean these companies would have to pay more interest on future loans. This could in turn reduce their return on investment. Because of this, REITs could potentially lose value when interest rates rise.
Risks of investing in REITs include higher dividend taxes, sensitivity to interest rates, and exposure to specific property trends.
Do REITs pay monthly dividends?
For investors seeking a steady stream of monthly income, real estate investment trusts (REITs) that pay dividends on a monthly basis emerge as a compelling financial strategy. In this article, we unravel two REITs that pay monthly dividends and have yields up to 8%.
Real Estate Index Admiral
The Vanguard REIT Index Fund pays quarterly distributions consisting of dividend income, return of capital, and capital gains.
One metric that investors often look to is trailing one-month performance. The top ETFs for equities, bonds, fixed income, commodities, and currencies for April 2024 based on this metric include CRPT, FCVT, EMHY, DBA, and UUP.
| ETF | Assets | Expense ratio |
|---|---|---|
| Schwab U.S. Small-Cap ETF (SCHA) | $16 billion | 0.04% |
| Invesco QQQ Trust (QQQ) | $249 billion | 0.20% |
| Vanguard High Dividend Yield Index ETF (VYM) | $51 billion | 0.06% |
| Vanguard Total International Stock ETF (VXUS) | $63 billion | 0.07% |
- Vanguard Total International Stock ETF (VXUS) ...
- Schwab U.S. Dividend Equity ETF (SCHD) ...
- Invesco S&P 500 GARP ETF (SPGP) ...
- Schwab Fundamental International Large Company Index ETF (FNDF) ...
- Vanguard Mid Cap Growth ETF (VOT) ...
- Vanguard Intermediate-Term Corporate Bond ETF (VCIT) ...
- iShares Floating Rate Bond ETF (FLOT)
