REITs must pay out at least 90% of their taxable income, which makes real estate a natural income holding. The main REIT ETFs are close substitutes, so the fee is usually the deciding factor.
Updated October 31, 2026 · fund data as of October 30, 2026
| Ticker | Name | Yield | Expense Ratio | Pays | AUM |
|---|---|---|---|---|---|
| VNQ | Vanguard Real Estate ETF | 3.63% | 0.13% | Quarterly | $66.4B |
| RWR | SPDR Dow Jones REIT ETF | 3.48% | 0.25% | Quarterly | $1.8B |
| USRT | iShares Core U.S. REIT ETF | 2.75% | 0.08% | Quarterly | $4.3B |
Yield is trailing 12-month distributions divided by the latest price, calculated the same way for every fund, as of October 30, 2026. Distributions, prices, and fees change; confirm with the issuer before investing.
REITs borrow heavily and compete with bonds for income investors, so rising interest rates usually hurt them and falling rates help. Property type matters too: today's funds hold data centers, cell towers, and warehouses as well as apartments and shopping centers.
Most REIT income is ordinary income rather than qualified dividends, though a portion generally qualifies for the 20% Section 199A deduction. That is why many investors hold REIT ETFs in IRAs. See the tax guide.
VNQ for size and liquidity, USRT for low cost. Their portfolios overlap heavily.
The large broad funds pay quarterly. Some individual REITs and specialist funds pay monthly, but we do not cover those here.
You already own some REITs through the index, but only a small slice. A dedicated fund raises that weight and your income.