What are the largest REIT ETFs?
The largest REIT ETF is the Schwab U.S. REIT ETF SCHH with $5.97B in assets. In the last trailing year, the best-performing REIT ETF was PFFR at 12.54%. The most recent ETF launched in the REIT space was the iREIT - MarketVector Quality REIT Index ETF IRET on 03/06/24.
| # | Name | M. Cap |
|---|---|---|
| 1 | Prologis 1PLD | $98.50 B |
| 2 | American Tower 2AMT | $80.32 B |
| 3 | Equinix 3EQIX | $69.71 B |
| 4 | Welltower 4WELL | $53.01 B |
| REIT ETF | Expense Ratio | Trailing-12-month Dividend Yield* |
|---|---|---|
| Vanguard Real Estate ETF (VNQ) | 0.12% | 4.1% |
| Invesco Active U.S. Real Estate Fund (PSR) | 0.35% | 3.1% |
| VanEck Mortgage REIT Income ETF (MORT) | 0.43% | 12.9% |
| SPDR Dow Jones International Real Estate ETF (RWX) | 0.59% | 4.3% |
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.
| Company (ticker symbol) | Sector | Dividend yield |
|---|---|---|
| Medical Properties Trust (MPW) | Healthcare | 27.0% |
| Global Net Lease (GNL) | Diversified | 16.7% |
| AGNC Investment (AGNC) | Mortgage | 14.9% |
| ARMOUR Residential REIT (ARR) | Mortgage | 14.7% |
Buffet and REITs
However, Berkshire sold its holdings of STORE Capital in 2022 after the company announced it was being acquired by two outside investment funds. Since then, filings have shown that Berkshire Hathaway has not owned shares of any other REIT.
Among the 50 real estate investment trusts (REITs) with the largest market cap, Prologis (PLD) and American Tower (AMT) recorded to the at the top of the list with around 93 and 83 billion US dollars each. The REITs sector reported a decrease in 2022, with the after the market cap reached record high the previous year.
Risks of investing in REITs include higher dividend taxes, sensitivity to interest rates, and exposure to specific property trends.
- What dividends and REITs are.
- ARMOUR Residential REIT – 20.7%
- Orchid Island Capital – 17.8%
- AGNC Investment – 14.8%
- Oxford Square Capital – 13.7%
- Ellington Residential Mortgage REIT – 13.2%
- SLR Investment – 11.5%
- PennantPark Floating Rate Capital – 10%
| Company (ticker) | 5-year total return | Dividend yield |
|---|---|---|
| Innovative Industrial Properties (IIPR) | 157.0% | 7.6% |
| Plymouth Industrial REIT (PLYM) | 156.1% | 3.8% |
| Equinix (EQIX) | 125.0% | 2.1% |
| Prologis (PLD) | 121.8% | 2.6% |
Is it better to invest in a REIT or REIT ETF?
- REITs may offer higher dividend yields compared to REIT ETFs, but they may also be more volatile and have higher fees. - reit ETFs provide investors with instant diversification and liquidity, but they may also have lower dividend yields and higher expense ratios.
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.
Key Points. REITs have outperformed stocks on 20-to-50-year horizons. Most REITs are less volatile than the S&P 500, with some only half as volatile as the market at large.
“I recommend REITs within a managed portfolio,” Devine said, noting that most investors should limit their REIT exposure to between 2 percent and 5 percent of their overall portfolio. Here again, a financial professional can help you determine what percentage of your portfolio you should allocate toward REITs, if any.
How to Qualify as a REIT? To qualify as a REIT, a company must have the bulk of its assets and income connected to real estate investment and must distribute at least 90 percent of its taxable income to shareholders annually in the form of dividends.
REITs empower anyone to invest in wealth-creating, income-producing real estate. They've certainly done that over the years. Over the long term, our research found that REITs have outperformed stocks. Since 1994, three REIT subgroups stood out for their ability to beat the S&P 500.
Conclusion. Warren Buffet prefers to invest in REITs instead of real property because they are a great source of passive income, are reward-oriented, and are more liquid than property ownership.
Leading REITs worldwide 2024, by market cap
Prologis, American Tower, and Welltower were the real estate investment trusts (REITs) worldwide with the largest market caps as of April 11, 2024. All three REITs were headquartered in the United States.
Stocks Warren Buffett is buying
Shares in Chevron (CVX), the only energy name among Dow Jones stocks, spent much of Q4 trading below $150 a share.
1. Federal Realty: The king. Federal Realty has increased its dividend annually for 54 consecutive years, which it claims (and there's no reason to doubt it) is the longest streak of any publicly traded real estate investment trust (REIT).
How many Americans own REIT shares?
Nareit estimates that nearly 170 million Americans live in the 50% of all households that own REITs. 168 million Americans live in households that own REIT stocks. 50% of households own REITs.
According to new research from Nareit, the association representing publicly traded real estate companies, 168 million Americans, roughly 50% of all U.S. households, have some exposure to public REITs. That ownership comes in direct stock ownership or through mutual funds, ETFs or target date funds that include REITs.
REITs historically perform well during and after recessions | Pensions & Investments.
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.
REITs. When interest rates are falling, dependable, regular income investments become harder to find. This benefits high-quality real estate investment trusts, or REITs. Strictly speaking, REITs are not fixed-income securities; their dividends are not predetermined but are based on income generated from real estate.
