updated: Mar 31, 2025
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REIT ETFs simplify investing in Real Estate Investment Trusts by providing access to a diversified portfolio of REITs through a single fund, eliminating the need for direct property ownership and management.
ETF name | Ticker symbol | 1-year annualised return |
iShares Residential and Multisector Real Estate ETF | REZ | 19.84% |
Residential REIT ETF | HAUS | 18.70% |
Invesco S&P 500 Equal Weight Real Estate ETF | RSPR | 10.16% |
iShares Core U.S. REIT ETF | USRT | 7.77% |
Janus Henderson U.S. Real Estate ETF | JRE | 5.55% |
Source: Finviz.com Data is current as of 17 March 2025, and is intended for informational purposes only, not for trading purposes. |
REIT ETFs offer several advantages: diversification, liquidity, potential passive income, and a hedge against inflation during market volatility.
The best part about investing in real estate, particularly through REITs and their dividend payouts, is that it is a proven wealth-building avenue, and REIT ETFs simplify sector access compared to direct property purchases.
REIT ETFs are exchange-traded funds that invest in Real Estate Investment Trusts (REITs). REITs are companies that own and operate properties like housing apartments, warehouses, and hotels, often paying dividends.
While REITs purchase and manage properties, REIT ETFs invest in REIT shares. A key advantage of REIT ETFs over individual REITs is diversification: you gain exposure to numerous REITs in one investment, similar to an index fund composed of many stocks, rather than a single stock.
Find out more: Best performing REITs
Inflation hedge: REIT ETFs can act as a hedge against inflation, as property rents and REIT values tend to rise with prices.
Diversification: REIT ETFs provide instant diversification across multiple REITs, reducing risk compared to single property or REIT investments.
Income: REIT ETFs, primarily investing in REITs, offer potential high dividend payouts due to REITs' mandated dividend distributions.
Find out more: Best ETFs for 2025 and how to invest in them
Liquidity: REIT ETFs can be traded like stocks, providing greater liquidity than direct real estate investments.
Interest rate sensitivity: REIT ETFs are affected by interest rate hikes, which increase borrowing costs for real estate, impacting REIT values.
Learn more How to buy and trade stocks in Singapore for beginners
Direct REIT investment:
Pros: Allows selection of specific REITs based on individual preferences, potential for higher returns from outperforming REITs.
Cons: Requires extensive research, active management, and carries higher risk due to less diversification.
REIT ETFs:
Pros: Provides instant diversification across numerous REITs and professional management.
Cons: Incurs management fees and offers less control over individual REIT selection.
For Singaporean investors seeking a hands-off, diversified approach, REIT ETFs are a suitable choice. Direct REIT investment offers more control but requires greater research and management effort.
At the time of publication, neither the author nor the editor possessed any holdings in the investments discussed.
Article sources
SingSaver writers are experts in their fields, using reliable sources like research studies, government websites, and interviews with industry professionals. All content is checked for accuracy and relevance. For more information on SingSaver’s editorial standards, please refer to our About Us page.
1. iShares Residential and Multisector Real Estate ETF. Finviz. Accessed 18 March 2025.
2. Residential REIT ETF. Finviz. Accessed 18 March 2025.
3. Invesco S&P 500 Equal Weight Real Estate ETF. Finviz. Accessed 18 March 2025.
4. iShares Core U.S. REIT ETF. Finviz. Accessed 18 March 2025.
5. Janus Henderson U.S. Real Estate ETF. Finviz. Accessed 18 March 2025.
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