REIT ETFs

• Heavy overlap. REIT ETFs draw from the same pool of listed property companies, so the six share 69% to 94% of their weight.
• Cost range. The six REIT ETFs here charge between 0.07% and 0.37%, so cost differs by $300 a year on $100,000.
• Different definitions. IYR holds mortgage REITs, USRT holds no cell towers and XLRE holds only about 30 stocks.
• Income. Trailing 12-month yields ran from 2.51% to 3.50%, and REITs must pay out most of their taxable income.
• A hard stretch. The six REIT ETFs lost 24.4% to 26.2% in 2022, and five-year annualized returns ran only 1.3% to 3.7%.
• Rates matter. REIT prices are sensitive to interest rates, so they can move with bonds as well as with stocks.

Dates differ by issuer and are shown in brackets, so compare the shape of each row, not the decimals. The trailing 12-month yield is shown for all six so the funds use one measure. VNQ’s net assets are for the ETF share class only ($38.62B on Nov 9); Vanguard’s figure for all share classes combined is larger. FREL’s figure is the latest on its fact sheet. VNQ’s ten largest holdings include its holding of another Vanguard REIT fund.

REIT ETFs look alike on a ticker list but differ in what counts as real estate. SCHH and USRT hold equity REITs, companies that own buildings and land and collect rent. VNQ and FREL follow MSCI indexes that cover the whole U.S. real estate sector, so they also hold real estate service companies such as CBRE. XLRE holds only the real estate stocks inside the S&P 500.

IYR goes furthest. Its index takes in mortgage REITs, which own property loans and mortgage bonds instead of buildings and respond to interest rates differently. In the holdings file compared here, IYR held Annaly, AGNC, Rithm and Starwood, which no other fund in the group holds in meaningful size.

USRT is the opposite case. Its index holds no American Tower, Crown Castle or SBA Communications, so it misses the cell tower REITs entirely. The other five hold between 7.5% and 12.2% in towers.

When SCHH or USRT fits: you want equity REITs only, at a low cost. When VNQ or FREL fits: you want the whole real estate sector, large to small. When XLRE fits: you want the large-company slice and accept a 30-stock fund. When IYR fits: you want mortgage REITs included on purpose. These describe what the funds hold, not recommendations.

Every REIT fund has to answer two questions: which companies count as real estate, and how much of the largest ones to hold. MSCI and Dow Jones cap the weight of the biggest companies, so the largest names cannot take over the fund. FTSE Nareit limits the index to tax-qualified equity REITs. S&P selects the real estate sector of the S&P 500.

The effect on sector mix is modest. Using one property-type scheme applied to every fund’s full holdings, health care was the largest group in all six, from 16.3% in FREL to 19.1% in USRT, and retail was second in all six. Cell towers made up 12.2% of XLRE and nothing in USRT.

The funds do not measure valuation on the same date or by the same method, so compare direction rather than decimals. Price-to-book ratios ran from 2.31 for USRT to 2.71 for XLRE on the dated figures used here.

Property-type shares are computed from each fund’s full holdings file using one scheme for every fund, so they are comparable across funds but will not match each issuer’s own sector table. Holdings dates differ, and FREL’s come from its SEC filing dated Jul 31, 2026. VNQ’s weights exclude its holding of another Vanguard REIT fund and are scaled to the stocks it holds directly.

Issuers report returns to different month-ends, which makes a side-by-side table misleading. To fix that, every figure below is a market price total return computed from daily adjusted closing prices on the same dates, with distributions reinvested. The one-, three- and five-year figures end on Nov 9, 2026. Figures for 3, 5 and 10 years are annualized.

Source: StockAnalysis daily price history, adjusted for distributions, computed Nov 9, 2026. These are market price returns, not issuer NAV returns, and they exclude your own taxes and costs. The 10-year figure runs from the Dec 30, 2016 close. Past performance does not guarantee future results.

Over the last year USRT led the group at 16.32% and IYR trailed at 10.49%. Over three years the six sat in a narrow band, from 12.76% for IYR to 15.99% for USRT, annualized. Over five years the range was only 1.33% to 3.69% a year, a reminder of how hard 2022 hit. In 2022 the six lost between 24.43% for USRT and 26.25% for VNQ and XLRE, and USRT led in 2023 and 2024.

Over 10 years XLRE led at 7.35% a year and SCHH trailed at 4.40%. Each comparison page repeats this table for its own two funds and also shows the issuers’ own NAV returns with their dates where the issuer reports them. Read how to measure investment growth for how to read returns correctly.

REIT ETFs pay more than the average stock fund because REITs must distribute most of their taxable income. All six pay quarterly, and the amounts move from quarter to quarter with property income. VNQ pays the most per share and SCHH the least, but that mostly reflects share price.

The fair comparison is the total paid over a full 12 months against the 12 months before, counted by ex-dividend date. The table below does that for all six funds using the payout histories on StockAnalysis.

Per-share dollars differ because share prices differ, so compare yields across funds and use the dollar change only within one fund. Source: StockAnalysis dividend history (Nov 9, 2026).

REIT ETF yield, measured as trailing 12-month yield, was 3.50% (Nov 9) for VNQ, 3.08% (Sep 30, 2026) for SCHH, 2.51% (Sep 30, 2026) for IYR, 3.23% (Nov 9) for XLRE, 2.85% (Sep 30, 2026) for USRT and 3.29% (Nov 9) for FREL on the dates in the table above. The issuers also publish a 30-day SEC yield: 2.83% (Oct 31, 2026) for VNQ, 3.40% (Nov 6, 2026) for SCHH, 3.05% (Sep 30, 2026) for IYR, 3.27% (Nov 6, 2026) for XLRE, 3.20% (Sep 30, 2026) for USRT and 3.35% (Sep 30, 2026) for FREL. The two measures use different periods and different dates, so small gaps can come from timing alone.

See what is dividend yield and yield vs total return for how to read yield next to price change.

Every comparison page matches the two funds’ full holdings by ticker. The overlap figure adds up the smaller of the two weights for every stock both funds hold.

These six funds overlap more than most categories, because every REIT index starts from the same pool of about 150 listed real estate companies. The range runs from 69% for XLRE and USRT to 94% for VNQ and FREL. SCHH shares 91% with FREL and 90% with VNQ. The lowest overlaps all involve XLRE, which holds only about 30 stocks.

Overlap is an estimate. Holdings dates differ: VNQ Sep 30, 2026; SCHH, XLRE and USRT Nov 6, 2026; IYR Nov 9, 2026; FREL Jul 31, 2026 (from its SEC filing). VNQ holds 14.6% of its assets in another Vanguard REIT fund, so its figures spread that position across the REITs inside it; matching only the stocks VNQ holds directly gives lower numbers, between 63% and 84% against the other five. Cash, futures and unmatched tickers are left out. Each comparison page also lists the ten largest holdings for both funds.

Each page below puts two funds side by side on cost, yield, holdings overlap, sector mix, returns, payouts and the ten largest holdings. Every figure carries its date, and the data room at the bottom of each page lists the source and grade of each number. These REIT ETF comparisons are the quickest way to see what you own. Because the funds overlap so heavily, the differences that matter are cost, what the index includes and how concentrated the fund is.

• 1. Index Check which index the fund follows and what it includes, such as mortgage REITs in IYR or the cell tower gap in USRT.
• 2. Breadth Holdings run from 30 to 139 here. A 30-stock fund concentrates more in the largest names.
• 3. Cost Expense ratios run from 0.07% to 0.37% here. Add the bid/ask spread when you trade.
• 4. Concentration Look at the ten largest holdings. They are 48.0% to 59.4% of each fund, larger than in broad stock funds.
• 5. Overlap Compare holdings. If most of the stocks repeat what you own, a second fund adds little.
• 6. Income Compare 12-month totals and yields, not a single quarter.
• 7. Dates and sources Do not rank funds on mismatched dates. Compare returns only when the periods match.

Start with how to research an ETF if the terms are new, and size any REIT fund inside your whole allocation with asset allocation explained.

The expense ratio is the annual fee that REIT ETFs take from the fund. On a $100,000 balance, 0.07% is $70 a year, 0.13% is $130 and 0.37% is $370. The gaps are small in any one year, but the fee comes straight out of return and compounds over decades. Use the ETF Fee Calculator to turn the fees into dollars over your own time horizon.

Trading costs come from the bid/ask spread, the gap between what buyers pay and sellers receive. Five of the six funds showed spreads of 0.01% to 0.04% in the dated figures, and the spread can widen when markets are stressed. Check the live spread, use limit orders for larger amounts and avoid the first and last minutes of the session.

Tax cost matters too. Most REIT distributions are taxed as ordinary income rather than as qualified dividends, and part may be treated as return of capital, so many investors hold REIT funds in tax-advantaged accounts. The treatment depends on the account, so see the Canada section below and confirm the details with a qualified tax professional.

You want the whole real estate sector: VNQ or FREL, which follow MSCI real estate indexes. Compare them on the VNQ vs FREL page.

You want equity REITs at the lowest cost: SCHH, or USRT if you accept no cell towers. See SCHH vs USRT.

You want a compact fund of large companies: XLRE holds about 30 stocks. Read SCHH vs XLRE.

You want mortgage REITs included: IYR is the only fund here that holds them, at a higher fee. See VNQ vs IYR.

You already own a U.S. total market or S&P 500 fund: it already holds some real estate, so a REIT fund adds to a sector you own. Check what you own with the Diversification Calculator. Size any position against your whole portfolio and your time horizon.

Owning two REIT funds. VNQ plus SCHH repeats about 90% of the same weight. Two tickers can still be one holding.

Assuming all REIT funds match. IYR holds mortgage REITs, USRT holds no cell towers and XLRE holds about 30 stocks. The index, not the label, is what you own.

Judging VNQ by its top holding. About 14.6% of VNQ sits in another Vanguard fund that holds REITs, so its real top positions look different once that holding is counted through.

Comparing returns over different dates. Issuers report to different month-ends. Compare returns only when the dates match, as the tables on this site do.

Ignoring interest rates. REIT prices fell sharply in 2022 when rates rose, and the recovery since has been uneven.

Holding REITs in a taxable account without checking. Distributions are mostly ordinary income, so the account type matters.

Owning dozens or hundreds of REITs lowers the risk of any one company, but it does not remove sector risk. The funds can fall together and the recovery can take years. Past losses are not a limit on future ones.

U.S.-listed funds such as VNQ, SCHH, IYR, XLRE, USRT and FREL trade in U.S. dollars. Buying them from a Canadian account usually involves converting Canadian dollars, which adds a cost, and some brokers let you hold U.S. dollars to avoid repeated conversions. A move in the U.S. dollar also changes your return in Canadian dollars.

Distributions paid to Canadian holders are generally subject to U.S. withholding tax, and the treatment depends on the account type. The tax treaty exemption usually applies inside an RRSP, while a TFSA is not exempt, and a non-registered account is taxed differently again. Canadian-listed REIT funds can be taxed differently from U.S.-listed ones. This is general education, not tax advice.

Confirm the rules for your accounts with a qualified tax professional, and see how to build an ETF portfolio for how a REIT fund fits inside an allocation.

Figures come from the issuer pages and files for each fund: Vanguard for VNQ, iShares for IYR and USRT, Schwab for SCHH, State Street for XLRE and Fidelity for FREL, plus StockAnalysis for market data, payouts and the same-date returns.

Returns are market price total returns computed from daily adjusted closing prices to Nov 9, 2026, so all six funds share the same dates. Overlap sums the smaller weight of each stock by ticker and is an estimate, since the holdings dates differ. FREL’s full holdings come from its SEC filing, and VNQ’s holding of another Vanguard REIT fund is counted through to the REITs inside it. The pages are educational research, not personal advice, and they do not recommend a particular fund for your situation.

Pathways, not rankings or recommendations.