A type of exchange-traded funds (ETFs) that primarily invests in real estate investment trust (REIT) equity securities. In other words, REIT ETFs purchase and hold stocks issued by REITs, being a form of companies that invest in real property such as office buildings, hotels, housing projects, etc. In so doing, these funds aim to imitate the performance of REIT indexes.
This ETF provides a low-cost investment vehicle for investors seeking exposure to REITs and real estate. REIT ETFs hold baskets of REIT stocks, general or specific, and similar to any other ETFs, the aim is to emulate an underlying REIT index.
Real estate ETFs make investing in real estate accessible to different types of investors, as investment involves a basket of real estate securities rather than a direct holding of the underlying physical property.
Investors can choose from both local REIT ETFs and international REIT ETFs.
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