A real estate exchange-traded fund (ETF) is one of the best ways to tap into the expected growth in U.S. commercial real estate investments in 2026. Using the TipRanks Best Real Estate ETFs tool, this article identifies three of the best-rated ETFs based on the assessment of top analysts on Wall Street.
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They are the iShares U.S. Real Estate ETF (IYR), the Vanguard Real Estate ETF (VNQ), and the Real Estate Select Sector SPDR Fund (XLRE).
iShares U.S. Real Estate ETF (IYR)
IYR offers access to the U.S. real estate space by investing in a broad mix of assets, including real estate investment trusts (REITs), real estate service providers, and property development companies.
IYR currently has about 8% upside based on an average price target of $108.73 from the top 61 analysts covering the fund. The ETF has gained 7.08% since the start of the year and holds about $4.06 billion in assets under management (AUM).
While this makes it the smallest of the three funds highlighted in this article, the ETF’s expense ratio of 0.38% is the most expensive of the group.
The Vanguard Real Estate ETF (VNQ)
The fund is run by leading asset manager Vanguard and is designed to generate investor income by investing in REITs that span multiple property niches, such as office, residential, and retail real estate.
VNQ currently offers about 9% upside based on an average price target of $102.77 from the top 147 analysts covering the fund. The ETF has added 7.23% year-to-date (YTD) and boasts a significantly larger $36.69 billion in AUM. This comes with an expense ratio of 0.13%.
Real Estate Select Sector SPDR Fund (XLRE)
XLRE aims to give investors access to the U.S. real estate sector by concentrating on shares of companies that largely develop and manage properties, while also holding a selection of REITs.
XLRE currently has about 8% upside based on the average price target of $46.72 from the top 32 analysts covering the fund. The ETF price has risen by about 8% YTD. The ETF currently oversees about $7.60 billion in AUM and has the cheapest expense ratio of 0.08%.
Conclusion
As all three funds currently offer about the same upside from the top analysts covering them, the Real Estate Select Sector SPDR Fund (XLRE) might make for a better investment opportunity, as the fund has the cheapest expense ratio.