New data from LegalShield suggests more Americans are seeking legal help to foreclose on their homes and to file for personal bankruptcy. This indicates the U.S. housing market remains under pressure, despite JPMorgan’s (JPM) earlier forecast for flat home prices this year.
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Yet, estimates show investment in U.S. commercial real estate will grow this year. To help investors prepare for this turbulence while shielding their portfolio, this article uses the TipRanks Best Real Estate ETFs tool to spotlight three real estate ETFs that have shown the most resilient return over the past five years in terms of their returns.
The ETFs are:
- iShares Core U.S. REIT ETF (USRT)
- iShares Cohen & Steers REIT ETF (ICF)
- The Schwab U.S. REIT ETF (SCHH)
iShares Core U.S. REIT ETF (USRT)
USRT deploys a strategy that focuses on real estate investment trusts (REITs) to provide investors with exposure to the U.S. real estate market. The ETF currently oversees $3.52 billion in assets, with an annual expense ratio of 0.08%.
The fund has produced a leading 12.20% price appreciation over the past five years. USRT is currently rated a Moderate Buy by analysts, with its average price target of $67.84 suggesting about 9% upside.
iShares Cohen & Steers REIT ETF (ICF)
Compared to the USRT, ICF is a significantly smaller real estate ETF that currently manages about $2 billion in assets. The fund also targets REITs and requires investors to cough up 0.32% of their portfolio in management fees.
ICF trails USRT in terms of performance over the past five years, having gained over 7% in share price. It also holds a Moderate Buy consensus rating from analysts and offers about 10% upside based on an average price target of $71.37.
Schwab U.S. REIT ETF (SCHH)
SCHH is by far the biggest of the three funds. It also targets REITs, offering exposure to assets such as homes, offices, and factories.
The ETF currently has $9.37 billion in assets under management but has the cheapest annual expense ratio of 0.07%.
Analysts also consider SCHH a Moderate Buy based on their consensus rating. Its price has jumped by 7.41% over the last five years. The fund has an average price target of $24.80, which implies about 10% upside.
Final Takeaway
The iShares Core U.S. REIT ETF (USRT) has been the top performer over the past five years and charges an expense ratio that is only marginally higher than the cheapest fund of the trio to invest in.