Posted on by Micah McDonald

5 Best Real Estate Sector ETFs to Own Long-Term: PSR vs REZ vs VNQ vs USRT vs FRI 1.7

  • Asset Class: Real Estate Sector (REITs)

  • Long-Term Performance: 8.36% CAGR

  • Correlation to U.S. Markets: 0.62

  • U.S. Large Cap Blend Performance: 9.93% CAGR

  • Back test timeframe: January 1994 – August 2023

  • Oldest ETF back tested: iShares U.S. Real Estate ETF (IYR)

  • Long-Term Performance: 8.14% CAGR

  • Correlation to U.S. Markets: 0.69

  • S&P 500 Performance: 6.95% CAGR

  • Back test timeframe: July 2000 – August 2023

  • Number of ETFs available in this asset class: 39

  • Number of ETFs in this asset class that are 10-years old or older: 14

REITs vs U.S. Large Cap Blend: January 1994 – August 2023

IYR vs SPY: July 2000 – August 2023

IYR vs SPY: June 19, 2000 – September 12, 2023

The Deep Value ETF Accumulator rankings for the 14 oldest Real Estate sector ETFs:

The 5 top ranked Real Estate sector ETFs head-to-head comparisons:

PSR vs REZ vs VNQ vs USRT vs FRI: December 2008 – August 2023

PSR vs REZ vs VNQ vs USRT vs FRI: November 21, 2008 – September 12, 2023

Stated objectives of 5 top ranked Real Estate sector ETFs:

PSR – The Invesco Active U.S. is an actively managed exchange-traded fund (ETF) that investments primarily from a universe of securities that are included within the FTSE NAREIT All Equity REITs Index at the time of purchase. The selection methodology uses quantitative and statistical metrics to identify attractively priced securities and manage risk. The Fund seeks to achieve high total return through growth of capital and current income by investing principally in equity real estate investment trusts (REITs). Portfolio management generally conducts a security and portfolio evaluation monthly.
REZ – The iShares Residential and Multisector Real Estate ETF seeks to track the investment results of an index composed of U.S. residential, healthcare and self-storage real estate equities. Exposure to the U.S. residential real estate sector. Targeted access to a subset of domestic real estate stocks and real estate investment trusts (REITs), which invest in real estate directly and trade like stocks. Use to diversify your portfolio and express a view on a specific U.S. real estate sector.
VNQ – Vanguard Real Estate ETF. Invests in stocks issued by real estate investment trusts (REITs), companies that purchase office buildings, hotels, and other real property. Goal is to closely track the return of the MSCI US Investable Market Real Estate 25/50 Index. Offers high potential for investment income and some growth; share value rises and falls more sharply than that of funds holding bonds. Appropriate for helping diversify the risks of stocks and bonds in a portfolio.
USRT – The iShares Core U.S. REIT ETF seeks to track the investment results of an index composed of U.S. real estate equities. Low cost access to diversified U.S. REITs (Real Estate Investment Trusts). Seek income and growth with broad exposure to U.S. real estate across property sectors. Use at the core of a portfolio for long term exposure to U.S. real estate.
FRI – The First Trust S&P REIT Index Fund is an exchange-traded fund. This exchange-traded Fund seeks investment results that correspond generally to the price and yield (before the Fund’s fees and expenses) of an equity index called the S&P United States REIT Index. Index Description According to the Index Provider: The S&P United States REIT Index measures the investable U.S. real estate investment trust market and maintains a constituency that reflects the market’s overall composition. All securities added to the S&P United States REIT Index must meet certain liquidity and market capitalization requirements. The Standard & Poor’s Index Committee, a team of Standard & Poor’s economists and index analysts, maintains the S&P United States REIT Index. Maintenance includes implementation of daily corporate actions, quarterly updates of significant events, and annual portfolio reconstitution each September. Share adjustments that exceed 5% are made at the time of the change. Share adjustments of less than 5% are made on a quarterly basis.

 

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Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator

Previous Deep Value ETF Accumulator article on Real Estate sector ETFs:

4 Best Real Estate Sector ETFs to Own Long-Term 1.6

Disclosure: We currently own shares of REZ and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform your own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to Google AdSense.