After a few volatile years for real estate investors, REITs staged an impressive comeback in 2026. The FTSE Nareit All Equity REIT Index was up 14.3% year to date as of Aug. 20, outperforming the S&P 500’s 11.6% price return over the same period.
“REITs enter the second half of 2026 with momentum and a favorable setup,” says Jay Jacobs, U.S. head of equity ETFs at BlackRock. Historically wide valuation gaps between REITs and the broader stock market, as well as between public and private real estate, have begun to narrow, he says. And limited new property supply and relatively low leverage also support the sector.
That rebound comes despite interest rates remaining elevated, which keeps financing costs higher for real estate companies that rely heavily on borrowing. This is in part why the near-term outlook for the sector isn’t entirely bullish. In its latest monthly outlook, the Schwab Center for Financial Research rated real estate as its “least favored” sector.
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Still, D.J. Tierney, head of the investment portfolio strategy team at Schwab Asset Management, says REITs can “serve an important role as a core holding in a diversified portfolio,” complementing stocks and bonds with returns driven by different cycles, income and potential inflation protection.
“Real estate, which consists primarily of commercial real estate investment trusts, tends to benefit from economic growth, which supports rent collections and property prices,” Tierney says. “REITs are favored as defensive sectors, typically offering earnings resilience during periods of macroeconomic uncertainty.”
REIT ETFs make it easier to reap those benefits without needing to bet on a single company or property type. The following REIT ETFs offer a range of ways to add real estate exposure to a diversified portfolio in 2026:
| REIT ETF | 30-DAY SEC YIELD | EXPENSE RATIO |
| Vanguard Real Estate ETF (ticker: VNQ) | 3.5%* | 0.13% |
| Schwab U.S. REIT ETF (SCHH) | 3.2% | 0.07% |
| Avantis Real Estate ETF (AVRE) | 3.2% | 0.17% |
| Vanguard Global ex-U.S. Real Estate ETF (VNQI) | 4.7%* | 0.12% |
| iShares Select U.S. REIT ETF (ICF) | 2.4% | 0.32% |
| iShares Mortgage Real Estate ETF (REM) | 9.4% | 0.48% |
| Colterpoint Net Lease Real Estate ETF (NETL) | 5.2% | 0.60% |
*Denotes trailing-12-month yield rather than 30-day SEC yield.
Vanguard Real Estate ETF (VNQ)
VNQ is one of the largest REITs ETFs in its category, with over $73 billion under management. Instead of concentrating only on the biggest REITs, it reaches across large, midsize and small real estate companies. That wider net helps reduce concentration risk, although the fund still carries over half its weight in the top 10 holdings.
VNQ’s passive approach keeps turnover low at about 7%, which helps keep costs down and performance steady. This is reflected in the 0.13% expense ratio. So, if you’re looking to anchor your real estate exposure in 2026, it’s hard to find a more balanced, durable option.
Schwab U.S. REIT ETF (SCHH)
SCHH charges just 0.07%, making it the cheapest option on this list. It tracks the Dow Jones Equity All REIT Capped Index, which generally includes all publicly traded REITs with market caps of $200 million or more while excluding mortgage and hybrid REITs.
Its 118 holdings span healthcare, retail, industrial, data center and telecommunication REITs, among other property types. Like many market cap-weighted funds, it leans toward larger industry players: About half of its assets are in the top 10 names. Over 10% are in healthcare and senior housing REIT Welltower Inc. (WELL) alone. But that concentration also means you get exposure to some of real estate’s strongest balance sheets and most established operators.
Avantis Real Estate ETF (AVRE)
With over 300 holdings, AVRE is the second-largest portfolio on this list, but what really sets it apart is geographic reach. Rather than focusing on only U.S. REITs, AVRE invests in REITs across the globe. U.S. companies still account for over 70% of the portfolio, but you’ll also get REITs from Asia Pacific, Europe, Africa, Latin America and the Middle East.
AVRE also takes a more hands-on approach by letting its managers deviate from the benchmark index if they see greater opportunities elsewhere. And it does this for only a 0.17% annual expense, which is unusually cheap for an actively managed fund.
[Read: 10 of the Best REITs to Buy for 2026]
Vanguard Global ex-U.S. Real Estate ETF (VNQI)
For a purely international REIT selection, VNQI is hard to beat. The fund excludes all U.S. REITs, instead tracking the S&P Global ex-U.S. Property Index, which covers more than 30 developed and emerging foreign markets with over 700 holdings. The fund’s primary regions are the Pacific at about 47.5% of assets, along with a roughly even split of 23% in emerging-market and European companies.
This makes VNQI a useful companion to a U.S.-focused fund like VNQ or SCHH. It adds diversified international exposure without duplicating your U.S. holdings and charges only 0.12% in annual expenses. VNQI probably isn’t the best choice as your only REIT ETF, but it’s an excellent option for balancing out a U.S.-heavy real estate portfolio.
iShares Select U.S. REIT ETF (ICF)
ICF takes a more focused approach to real estate investing. Instead of spreading its assets across hundreds of REITs, it tracks the Cohen & Steers Realty Majors Index, which holds only 30 names. These are large and liquid REITs that Cohen & Steers believes could benefit as the real estate industry becomes more consolidated.
This concentration can be a double-edged sword: You won’t get the same diversification as broader funds, but each holding within ICF’s portfolio can have a bigger impact on returns. So if you’re looking for a middle ground between stock picking and broad market exposure, this could be it.
iShares Mortgage Real Estate ETF (REM)
REM is the oddball on this list because it invests in mortgage REITs rather than traditional landlords. Mortgage REITs buy or originate mortgages and mortgage-backed securities (MBS), earning income from the interest paid on those investments.
This can translate into higher income: REM boasts a 30-day SEC yield of 9.4% compared to low single digits for many traditional REIT ETFs. The downside is it comes with a 0.48% expense ratio and heavy concentration with nearly 80% of its holdings in the top 10 names. But if income is your top priority, REM deserves a look.
Colterpoint Net Lease Real Estate ETF (NETL)
NETL also takes a different angle on REIT investing: It focuses on net-lease REITs. Under these leases, the tenants pay not only rent but also most, if not all, property expenses, such as taxes, insurance and maintenance. This can make for a more straightforward business model for landlords.
With only 22 companies in its portfolio, NETL is the most concentrated fund on this list, and it also comes with the highest fee at 0.6%. But it provides a 5.2% 30-day SEC yield, proving net-lease real estate can be lucrative for income investors.
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7 Best REIT ETFs to Buy for 2026 originally appeared on usnews.com
Update 08/21/26: This story was published at an earlier date and has been updated with new information.
