What are broad real estate ETFs?
Real estate ETFs offer a stake in property without the work of being a landlord. Most of their money sits in real estate investment trusts (REITs). These are companies that own rent-producing property such as warehouses, data centers, apartments, storage units and shopping malls, and they must pay out most of their taxable income as dividends. Of the 15 largest funds, 13 hold Welltower, Public Storage, Ventas and Extra Space Storage, and 12 hold Prologis, Equinix, Simon Property Group, Digital Realty and Realty Income.
Most are index funds, and the five biggest look alike. Welltower is the largest company holding in each of VNQ (Vanguard), SCHH (Schwab), XLRE (State Street SPDR), IYR and USRT (both iShares). Breadth varies. XLRE holds 31 stocks and ICF 30, with about 59% of each in the top 10, while VNQ holds 141. REZ sticks to residential, health care and self-storage owners and puts 23.5% in Welltower. VNQI and HAUZ hold only non-US firms such as Goodman Group, while DFGR and RWO mix US and foreign holdings. DFAR, DFGR and AVRE aim for long-term capital appreciation rather than tracking a named index. Five leveraged and inverse funds, including DRN and DRV, are built for short-term trading.
Costs vary widely. The expense ratio is the annual fee taken from fund assets. The median across the group is 0.48%, and fees range from 0.07% to 1.06%. The biggest funds sit near the low end: SCHH charges 0.07%, XLRE and USRT 0.08% and VNQ 0.13%. IYR, at 0.37%, and RWO, at 0.50%, cost more.
Most of the money sits in a handful of funds. Of roughly $124.1 billion in these ETFs, VNQ alone manages about $73.1 billion. The five largest (VNQ, SCHH, XLRE, IYR and USRT) hold 82%.
Broad real estate ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 15 biggest broad real estate ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Welltower Inc | 13 of 15 | 9.08% |
| Public Storage | 13 of 15 | 3.72% |
| Ventas Inc | 13 of 15 | 3.12% |
| Extra Space Storage Inc | 13 of 15 | 2.27% |
| Prologis Inc | 12 of 15 | 7.49% |
| Equinix Inc | 12 of 15 | 5.23% |
| Simon Property Group Inc | 12 of 15 | 4.59% |
| Digital Realty Trust Inc | 12 of 15 | 4.3% |
| Realty Income Corp | 12 of 15 | 3.97% |
| Iron Mountain Inc | 11 of 15 | 2.72% |
| VICI Properties Inc | 11 of 15 | 2.12% |
| American Tower Corp | 9 of 15 | 4.2% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest broad real estate ETFs, side by side
Swipe the table to see all 5 funds.
| VNQ | SCHH | XLRE | IYR | USRT | |
|---|---|---|---|---|---|
| Net assets | $73.11B | $11.20B | $8.10B | $4.67B | $4.66B |
| Expense ratio | 0.13% | 0.07% | 0.08% | 0.37% | 0.08% |
| Holdings | 141 | 117 | 31 | 61 | 124 |
| In the 10 largest | 54.93% | 51.59% | 59.08% | 51.2% | 49.24% |
| Biggest holding | Vang-rl Es2-ins+ (14.5%) | Welltower Inc (11.05%) | Welltower Inc (11.01%) | Welltower Inc. (10.82%) | Welltower Inc (9.03%) |
| Yield | 3.63% | 2.95% | 3.39% | 2.44% | 2.78% |
| 1-year return | +9.6% | +7.1% | +2.8% | +1.9% | +8.5% |
| 3 years, a year | +13.8% | +14.1% | +13.3% | +12.7% | +15.9% |
| 5 years, a year | +0.9% | +1.5% | +1.1% | +0.4% | +3.1% |
| Worst drop, past year | -11.4% | -11.8% | -11.1% | -11.8% | -12.4% |
| Launched | 2004 | 2011 | 2015 | 2000 | 2007 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 30, 2026.
Head to head
VNQ vs SCHH
These are the two largest funds, with $73.1 billion in VNQ and $11.2 billion in SCHH, and 77.3% of their assets overlap. VNQ holds 141 positions. Its largest, at 14.5%, is another Vanguard real estate fund (listed as Vang-rl Es2-ins+). SCHH holds 117, led by Welltower at 11.05%. Their top 10 holdings make up 54.9% and 51.6% of assets. SCHH charges 0.07% versus VNQ's 0.13%. In the year to October 30, 2026, VNQ returned 9.6% and SCHH 7.1%, with worst drops of 11.4% and 11.8%. VNQ yielded 3.63%, SCHH 2.95%. SCHH may suit fee-focused investors, and VNQ those wanting more income.
VNQ vs XLRE
Every one of XLRE's 31 stocks is also in VNQ, yet only 62.8% of their assets overlap, the lowest of any pair among the five largest funds. VNQ spreads its money across 141 positions, while XLRE puts 59.1% in its top 10, led by Welltower at 11.01%. XLRE costs 0.08% to VNQ's 0.13%. In the year to October 30, 2026, VNQ returned 9.6% and XLRE 2.8%, and their worst drops were similar, at 11.4% and 11.1%. In the 2022 bear market, VNQ fell 31.8% and XLRE 32.3%. XLRE may suit those wanting a short, focused list, and VNQ those wanting breadth.
SCHH vs USRT
These two are close to interchangeable. They share 111 holdings, and 85.4% of their assets overlap, the highest of any pair among the five largest funds. SCHH has 117 holdings and USRT 124. Their top 10 make up 51.6% and 49.2%, and Welltower leads both, at 11.05% and 9.03%. Fees differ by a hair: 0.07% versus 0.08%. In the year to October 30, 2026, USRT returned 8.5% and SCHH 7.1%, with worst drops of 12.4% and 11.8%. In the 2022 bear market, SCHH fell 30.9% and USRT 30.1%. The choice may come down to which brokerage an investor uses.
How much do the largest broad real estate ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| SCHH and USRT | 85.4% | 111 | |
| SCHH and IYR | 85.3% | 51 | |
| XLRE and IYR | 80% | 31 | |
| IYR and USRT | 79.1% | 48 | |
| VNQ and SCHH | 77.3% | 114 | |
| VNQ and IYR | 73.8% | 57 | |
| SCHH and XLRE | 72.8% | 28 | |
| VNQ and USRT | 71.6% | 115 | |
| XLRE and USRT | 69.1% | 25 | |
| VNQ and XLRE | 62.8% | 31 |
From each fund’s full holdings in its latest N-PORT report.
How have broad real estate ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing broad real estate ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | KBWY Invesco KBW Premium Yield Equity REIT ETF | $315.2M | 0.35% | -2.5% | +13.5% | +15.2% | +9.9% |
| 2 | VNQ Vanguard Real Estate ETF | $73.11B† | 0.13% | +4.8% | +9.2% | +9.6% | +13.8% |
| 3 | PSR Invesco Active U.S. Real Estate Fund | $60.4M | 0.35% | +1.8% | +12.4% | +8.6% | +13.1% |
| 4 | USRT iShares Core U.S. REIT ETF | $4.66B | 0.08% | +0.9% | +12.3% | +8.5% | +15.9% |
| 5 | FRI First Trust S&P REIT Index Fund | $180.5M | 0.5% | +0.6% | +11.9% | +8.3% | +15.4% |
| 6 | BBRE JPMorgan BetaBuilders MSCI US REIT ETF | $1.26B | 0.11% | +0.8% | +11.9% | +8.1% | +15.4% |
| 7 | DFAR Dimensional US Real Estate ETF | $1.78B | 0.19% | +2.4% | +11.6% | +7.6% | +14.0% |
| 8 | ICF iShares Cohen & Steers REIT ETF | $2.10B | 0.32% | +3.0% | +11.8% | +7.6% | +14.2% |
| 9 | REZ iShares Residential and Multisector Real Estate E… | $874.7M | 0.48% | +0.6% | +9.9% | +7.5% | +16.2% |
| 10 | SCHH Schwab US REIT ETF | $11.20B | 0.07% | +1.8% | +10.9% | +7.1% | +14.1% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How broad real estate ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| VNQ | not yet launched | not yet launched | -31.8% |
| SCHH | not yet launched | -43.3% | -30.9% |
| XLRE | not yet launched | not yet launched | -32.3% |
| IYR | -69.7% | -41.5% | -31.3% |
| USRT | not yet launched | not yet launched | -30.1% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives broad real estate ETFs?
REITs earn most of their money from rent, so their profits rise and fall with occupancy and rent levels. Those depend on the economy and on how much new space gets built. They also differ by property type: demand for warehouses, data centers, senior housing, offices and malls can move in opposite directions. Interest rates matter just as much. REITs often borrow to own property, so higher rates raise their costs. Their dividends also compete with bond yields, which can push share prices down when rates climb. Property values tend to fall as rates rise, too.
In past downturns, these funds fell further than the S&P 500. In the 2022 bear market, when interest rates rose quickly, VNQ fell 31.8%, XLRE 32.3%, IYR 31.3%, SCHH 30.9% and USRT 30.1%, against 24.5% for the S&P 500. In the 2020 COVID crash, SCHH dropped 43.3% and IYR 41.5%, versus 33.7% for the index. In the 2008 financial crisis, when credit markets froze, IYR, the oldest of the large funds, lost 69.7%, against 55.2% for the S&P 500. Their dividends did not protect investors from those losses.
Broad real estate ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | SCHH Schwab US REIT ETF | 0.07% | $7 a year | $11.20B |
| 2 | XLRE Real Estate Select Sector SPDR Fund | 0.08% | $8 a year | $8.10B |
| 3 | USRT iShares Core U.S. REIT ETF | 0.08% | $8 a year | $4.66B |
| 4 | FREL Fidelity MSCI Real Estate Index ETF | 0.08% | $8 a year | $1.49B |
| 5 | HAUZ DBX ETF Trust - Xtrackers International Real … | 0.1% | $10 a year | $1.05B |
Ordinary funds with at least $10 million in net assets. The median ordinary broad real estate ETF charges 0.45% a year; leveraged and inverse funds usually charge more.
Do broad real estate ETFs pay dividends?
37 of the 37 ordinary broad real estate ETFs with a page here paid distributions over the last 12 months, with a median yield of 3.46%.
| Highest yields | Yield | Net assets |
|---|---|---|
| IYRI NEOS Real Estate High Income ETF | 11.6% | $285.1M |
| KBWY Invesco KBW Premium Yield Equity REIT ETF | 9.15% | $315.2M |
| SRHR SRH REIT Covered Call ETF | 6.66% | $54.4M |
| BLDG Cambria Global Real Estate ETF | 5.67% | $67.2M |
| NETL NETLease Corporate Real Estate ETF | 5.54% | $49.1M |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets. Some of these yields come from selling options, which gives up some of the gains.
How to choose a broad real estate ETF
- What each fund charges per year. SCHH charges 0.07% a year, XLRE and USRT 0.08%, FREL 0.084% and HAUZ 0.10%. IYR charges 0.37% even though 85.3% of its assets overlap with SCHH. Across all real estate ETFs, the median is 0.48%.
- How concentrated the portfolio is. XLRE and ICF hold about 30 stocks, with 59% in their top 10. REZ puts 23.5% in Welltower alone. VNQ holds 141 positions, and VNQI spreads across 706, with only 22% in its top 10.
- How holdings are picked. BBRE (MSCI US REIT Custom Capped Index), SCHH and ICF track REIT-only indexes. FREL's MSCI USA IMI Real Estate 25/25 Index covers real estate stocks more broadly. DFAR, DFGR and AVRE target long-term capital appreciation without naming an index.
- US only, global or international. SCHH, IYR and USRT hold US real estate stocks. DFGR and RWO mix US and foreign companies. VNQI and HAUZ exclude the US, owning firms like Goodman Group. They lost 7.3% and 6.9% in the year to October 30, 2026.
- Fund size and trading costs. VNQ manages about $73.1 billion and SCHH $11.2 billion. REZ has about $875 million and AVRE $861 million. Bigger funds often trade with narrower bid-ask spreads, the gap between the two prices quoted for a fund's shares.
- Leveraged, inverse and option-income versions. URE and DRN aim for 2x and 3x an index's daily move, and DRV, SRS and REK aim for the opposite. Daily resets mean results over longer periods can stray far from the multiple. Covered-call SRHR trades some upside for income.
What are the risks of broad real estate ETFs?
- Heavy weight in a few landlords. Welltower makes up a median 9.08% of the 13 large funds holding it and 23.52% of REZ. The top 10 holdings are about 59% of XLRE and ICF, so one company's setback can move the whole fund.
- Sensitivity to interest rates. REITs borrow to own property, and their dividends compete with bond yields, so rising rates tend to hurt. In the 2022 bear market, VNQ fell 31.8% and XLRE 32.3%, against 24.5% for the S&P 500.
- Deeper losses in market crashes. In the 2008 financial crisis, IYR lost 69.7% while the S&P 500 lost 55.2%. In the 2020 COVID crash, SCHH fell 43.3% versus 33.7%. A dividend yield does little to offset losses that size.
- Large swings, especially in foreign funds. In the year to October 30, 2026, volatility, a gauge of price swings, ranged from 12.4% (DFGR) to 16.3% (REZ). International VNQI and HAUZ had the deepest drops, 17.4% and 17.8%, and also carry currency risk.
- Leveraged and inverse funds drift over time. URE, DRN, DRV, SRS and REK reset daily, so holding them for months can produce results far from their stated multiple. In the year to October 30, 2026, both DRN (3x) and DRV (-3x) lost money: 7.3% and 5.8%.
Leveraged and inverse broad real estate ETFs (2x and 3x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all broad real estate ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | VNQ Vanguard Real Estate ETF | $73.11B† | 0.13% | 3.63% | +9.2% | +9.6% | +0.9% |
| 2 | SCHH Schwab US REIT ETF | $11.20B | 0.07% | 2.95% | +10.9% | +7.1% | +1.5% |
| 3 | XLRE Real Estate Select Sector SPDR Fund | $8.10B | 0.08% | 3.39% | +7.7% | +2.8% | +1.1% |
| 4 | IYR iShares U.S. Real Estate ETF | $4.67B | 0.37% | 2.44% | +5.9% | +1.9% | +0.4% |
| 5 | USRT iShares Core U.S. REIT ETF | $4.66B | 0.08% | 2.78% | +12.3% | +8.5% | +3.1% |
| 6 | DFGR Dimensional Global Real Estate ETF | $3.86B | 0.22% | 3.97% | +6.6% | +3.7% | — |
| 7 | VNQI Vanguard Global ex-U.S. Real Estate ETF | $3.86B† | 0.12% | 5.05% | -6.7% | -7.3% | -2.1% |
| 8 | ICF iShares Cohen & Steers REIT ETF | $2.10B | 0.32% | 2.65% | +11.8% | +7.6% | +1.4% |
| 9 | DFAR Dimensional US Real Estate ETF | $1.78B | 0.19% | 3.47% | +11.6% | +7.6% | — |
| 10 | FREL Fidelity MSCI Real Estate Index ETF | $1.49B | 0.08% | 3.46% | +7.1% | +3.2% | +0.6% |
Questions investors ask about broad real estate ETFs
What is the largest real estate ETF?
Vanguard Real Estate ETF (VNQ) is the largest, with about $73.1 billion in net assets. That puts it far ahead of Schwab's SCHH at $11.2 billion and State Street's XLRE at $8.1 billion. VNQ, launched in 2004, holds 141 positions and charges 0.13% a year. Its largest company holdings are Welltower, Prologis and Equinix. Vanguard also runs VNQI, a fund of non-US real estate stocks with about $3.9 billion.
What is the cheapest real estate ETF?
Schwab's SCHH is the lowest-cost fund, with a 0.07% expense ratio (its yearly fee). XLRE and USRT follow at 0.08%, Fidelity's FREL at 0.084% and the international HAUZ at 0.10%. Those fees sit far below the 0.48% median for real estate ETFs. Low cost doesn't mean identical holdings: XLRE owns 31 stocks and SCHH 117, while HAUZ holds only companies outside the US.
VNQ vs SCHH: what's the difference?
They overlap heavily, with 77.3% of assets in common, but differ in cost, size and yield. SCHH charges 0.07% a year versus 0.13% for VNQ, and it tracks an index of US REITs only. VNQ is far larger, at about $73.1 billion. As of October 30, 2026, VNQ's 3.63% yield topped SCHH's 2.95%. In the year to that date, VNQ returned 9.6% and SCHH 7.1%. Which fits may depend on whether fees or income matter more to an investor.
Do real estate ETFs pay dividends?
Yes. All 37 real estate ETFs with a yield on record pay dividends, and the median yield was 3.46% as of October 30, 2026. VNQ yielded 3.63%, XLRE 3.39% and SCHH 2.95%. IYRI (11.6%) and KBWY (9.15%) paid more, though a very high yield can signal extra risk. REITs must pay out most of their taxable income. Most REIT dividends are taxed as ordinary income rather than at lower qualified-dividend rates, which is why some investors hold these funds in IRAs.
Do real estate ETFs hold Welltower?
Yes, most do. Welltower appears in 13 of the 15 largest real estate ETFs, at a median weight of 9.08%. It is the largest holding in funds such as BBRE (12%), SCHH (11.05%) and XLRE (11.01%), and it makes up 23.52% of REZ. The two that leave it out, VNQI and HAUZ, hold only companies outside the US. Prologis, held by 12 of the 15, is the second-largest company holding in most of them.
How many real estate ETFs are there?
There are 42 US-listed broad real estate ETFs, including 5 leveraged or inverse funds. Together they hold about $124.1 billion, and the five largest (VNQ, SCHH, XLRE, IYR and USRT) account for 82% of it. The rest include international funds such as VNQI and HAUZ, global funds such as DFGR and RWO, narrower funds such as REZ, and high-income funds such as KBWY and IYRI.
What are leveraged and inverse real estate ETFs?
They are trading tools that use derivatives to multiply or reverse a real estate index's daily move. URE aims for 2x and DRN for 3x, while DRV (-3x), SRS and REK aim to rise when real estate stocks fall. Because they reset daily, returns over months can stray far from the multiple. In the year to October 30, 2026, both DRN and DRV lost money, 7.3% and 5.8%. They are also small: URE, the largest, has about $55.1 million.
Is a real estate ETF the same as a REIT?
No. A REIT is a single company that owns income-producing property, such as Prologis or Realty Income. A real estate ETF holds many such companies in one fund: VNQ has 141 holdings and VNQI 706. Some funds, like SCHH and BBRE, track REIT-only indexes, while IYR's index covers US real estate stocks more broadly. An ETF spreads risk across many landlords but adds a yearly fee. Among the largest funds, that fee runs from 0.07% for SCHH to 0.50% for RWO.
Is there a Vanguard, Fidelity or Schwab real estate ETF?
Yes. Vanguard offers 2: VNQ (Vanguard Real Estate ETF), VNQI (Vanguard Global ex-U.S. Real Estate ETF). Fidelity offers 2: FREL (Fidelity MSCI Real Estate Index ETF), FPRO (Fidelity Real Estate Investment ETF). Schwab offers one: SCHH (Schwab US REIT ETF).
