Equity: U.S. Real Estate

XLRE Top Performer Intra-day
Price $31.34
Today’s Change 0.48%
4:00pm 01/16/2018
WREI Bottom Performer Intra-day
Price $44.91
Today’s Change -0.76%
3:48pm 01/16/2018

ETF.com Insight

With 17 ETFs and over $50.55B in combined AUM, the Equity: U.S. Real Estate segment provides exposure to the U.S. space with a focus on Real Estate securities.

Year-to-date, the best-performing ETF in the segment is the NuShares Short-Term REIT ETF (NURE), with a total return of -0.04%. Meanwhile, the most popular ETF is the Vanguard REIT ETF (VNQ) with $33.01BB in assets under management.

Investors should take a look at the Vanguard REIT ETF (VNQ). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The Vanguard U.S. REIT fund tracks a market-cap-weighted index of companies involved in the ownership and operation of real estate in the United States. VNQ has an expense ratio of 0.12% and tracks the MSCI US REIT Index.

Performance Dispersion

ETF.com Efficiency Insight

The average efficiency score in the Equity: U.S. Real Estate segment is 88 out of 100, with the Schwab U.S. REIT ETF(SCHH) obtaining the highest rating of 96 out of 100.

Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.34% per year, with the Schwab U.S. REIT ETF (SCHH) having the lowest expense ratio, charging investors 0.07% yearly.

Investors should look for funds with tight tracking, such as the Vanguard REIT ETF (VNQ), with a 12-month median tracking difference of -0.09%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Equity: U.S. Real Estate segment is 87 out of 100, with the iShares U.S. Real Estate ETF(IYR) obtaining the highest rating of 99 out of 100.

The iShares U.S. Real Estate ETF (IYR) is the undisputed segment leader when it comes to liquidity. The fund trades 553.12M in daily average volume. Investors should also find ample liquidity in the Vanguard REIT ETF (VNQ), with $338.83M in daily dollar volume.

Use limit orders to trade funds such as the Wilshire US REIT ETF(WREI), due to their double-digit market spreads.

ETF.com/ Block Liquidity

SCHH
5
4
3
2
1
IYR
5
4
3
2
1
VNQ
5
4
3
2
1
RWR
5
4
3
2
1
ICF
5
4
3
2
1
FREL
5
4
3
2
1
USRT
5
4
3
2
1
REZ
5
4
3
2
1
FRI
5
4
3
2
1
XLRE
5
4
3
2
1
KBWY
5
4
3
2
1
ROOF
5
4
3
2
1
PSR
5
4
3
2
1
WREI
5
4
3
2
1
NURE
5
4
3
2
1
RORE
5
4
3
2
1
EWRE
5
4
3
2
1
This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

The Thomson Reuters US Residential & Commercial REITs has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.

Investors trying to match a broad market exposure should pay attention to IYR. This fund obtains a high Fit score and investors should capture market-like returns.

Other funds diverge from the market, by nature of their investment mandates; for example, KBWY follows a Multi-factor strategy and obtains a low Fit score compared with our neutral benchmark.

Index Methodology