Latest data has shown that Japanese home builders are ramping up their presence in the U.S. This comes even as commercial real estate investment is expected to grow by 16% to $562 billion by the end of this year.
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This article spotlights the three real estate exchange-traded funds (ETFs) for investors to consider. The funds, selected based on their leading three-year performance as seen on the TipRanks Best Real Estate ETFs tool, are:
- The iShares Core U.S. REIT ETF (USRT)
- The SPDR Dow Jones REIT ETF (RWR)
- The Schwab U.S. REIT ETF (SCHH)
iShares Core U.S. REIT ETF (USRT)
This ETF targets real estate investment trusts (REITs) and aims to generate returns by investing in income-generating U.S. real estate assets.
The fund currently has $3.43 billion in assets under management and charges an annual expense ratio of 0.08%. USRT has climbed by 19.46% over the past three years, leading the pack in terms of performance.
USRT is currently rated a Moderate Buy by analysts, with its average price target of $67.43 implying about 15% upside.
SPDR Dow Jones REIT ETF (RWR)
RWR likewise targets REITs and tracks the Dow Jones U.S. Select REIT Index, providing investors with indirect exposure to the U.S. real estate market.
The ETF currently has $1.69 billion in assets and is the smallest of the three funds highlighted in this article. RWR charges an expense ratio of 0.25%.
Over the past three years, RWR’s price has risen by over 14%. The ETF currently holds a Moderate Buy consensus rating from analysts and offers about 15% upside. This is based on an average price target of $114.34.
Schwab U.S. REIT ETF (SCHH)
SCHH’s strategy also relies on REITs and offers exposure to diverse real estate assets such as homes, offices, and factories.
The ETF currently oversees about $9.04 billion in assets, making it by far the largest of the featured trio. Despite its size, the fund’s 0.07% expense ratio is the cheapest of the three.
SCHH has gained 12% over the past three years. Analysts also consider the fund a Moderate Buy and the fund offers about 16% upside based on an average price target of $24.67.
Final Takeaway
The iShares Core U.S. REIT ETF (USRT) leads the others in terms of performance over the last three years, and its fee is very close to that of the next-cheapest fund to invest in.