Why REIT ETFs Still Work as Real Estate Slumps

The struggle of brick-and-mortar real estate has extended into investment portfolios. Elevated inflation and high interest rates have weighed on the real estate sector over the past few years. Real estate investment trusts or REIT ETFs have not been spared. Yet these exchange-traded funds are popular among income investors. They generate cash and can help diversify a portfolio. So, where do they fit in yours? And which REIT ETFs do Morningstar analysts consider top picks? Dan Sotiroff is the associate director of US Passive Strategies for Morningstar. Dan is also the editor of Morningstar’s ETFInvestor newsletter.
Subscribe to Morningstar’s ETFInvestor newsletter. newsletters.morningstar.com
On this episode:
00:00:00 Welcome
00:01:26 Basics of REIT ETFs
00:04:34 Active vs. Passive REIT ETFs
00:06:03 REIT ETFs’ Performance vs US Stock Market
00:09:20 Cutting the Tax Bill on REIT ETF income
00:10:06 Top REIT ETFs From Vanguard & Schwab
00:13:48 Key Takeaways for Income Investors

Watch more from Morningstar:
How to Make the Most of Your IRA in 2026 (apple.news/AXJIfLlS_RWO6C8JuDh4JVQ)
3 Winners and 3 Losers from Emerging-Market Funds’ Big Rally (apple.news/A_WizFuaGT5qyR6imVKVaxw)
How New Retirees Can Spend More Without Risking Their Savings (apple.news/ApH_KJKH1SOyX6NZDlpFjBA)

Follow Morningstar on social:
Facebook facebook.com/MorningstarInc
X x.com/MorningstarInc
Instagram instagram.com/morningstarinc/?hl=en
LinkedIn linkedin.com/company/morningstar/posts/?feedVi…

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.