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Asset Class: Real Estate Sector
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Long-Term Performance: 8.95% CAGR
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Correlation to U.S. Markets: 0.61
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U.S. Large Cap Blend Performance: 9.76% CAGR
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Back test timeframe: January 1994 – August 2022
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Oldest ETF back tested: iShares U.S. Real Estate ETF (IYR)
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Long-Term Performance: 8.87% CAGR
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Correlation to U.S. Markets: 0.69
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S&P 500 Performance: 6.57% CAGR
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Back test timeframe: July 2000 – August 2022
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Number of ETFs available in this asset class: 37
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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 2022
IYR vs SPY: July 2000 – August 2022
IYR vs SPY: June 19, 2000 – September 9, 2022
The Deep Value ETF Accumulator rankings for the 14 oldest Real Estate sector ETFs:
The 4 top ranked Real Estate sector ETFs head-to-head comparisons:
PSR vs REZ vs VNQ vs ICF: December 2008 – August 2022
PSR vs REZ vs VNQ vs ICF: November 21, 2008 – September 9, 2022
Stated objectives of 4 top ranked Real Estate sector ETFs:
PSR – The Invesco Active U.S. Real Estate ETF (Fund) structures and selects its 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 will invest 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.
ICF – The iShares Cohen & Steers REIT ETF seeks to track the investment results of an index composed of U.S. real estate investment trusts (“REITs”). Exposure to large real estate companies that are dominant in their respective property sectors. Access to U.S. 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 the U.S. real estate market.
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Previous Deep Value ETF Accumulator article on Real Estate sector ETFs:
4 Best Long-Term Performance Real Estate Sector ETFs 1.5
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 M1 Finance and Google AdSense.