An exchange traded fund (ETF) that primarily invests in real estate, either physically or by means of financial securities in which a basket of real estate investments is an underlying. Real estate funds typically invest in REITs and stocks that relate to real estate investments/ assets.

Given their nature, real estate ETFs can invest in a wider range of underlying real-estate related securities, but not solely in equity securities issued by REITs. In other words, investment options include different types of securities that provide exposure to real estate.

Real estate ETFs may be local or global. A global real estate ETF allows market participants to invest in the largest real estate companies and real estate investment trusts (REITS) worldwide.