Top 5 High-Performing Real Estate Exchange-Traded Funds for August 2025
In the dynamic world of investing, real estate exchange-traded funds (ETFs) have emerged as a popular choice for those seeking diversification and potential growth. Here are some top-performing real estate ETFs to consider, other than SRVR, JRE, and WTRE, that offer a range of investment strategies.
- Dimensional US Real Estate ETF (DFAR)
With a Gold Morningstar rating, DFAR is an actively managed, rules-based ETF that provides broad US REIT exposure. It boasts a dividend yield of 2.83% and is known for its strong risk-adjusted return profile. Managed by Dimensional Fund Advisors, DFAR is considered one of the best performing REIT ETFs in the current market.
- Schwab US REIT ETF (SCHH)
SCHH is a cost-effective option with a very low expense ratio of 0.07% and $8 billion in assets under management. It tracks the Dow Jones US Select REIT Index and offers a 3.06% dividend yield, making it an attractive choice for budget-conscious investors.
- Vanguard Real Estate ETF (VNQ)
As the market leader with $34 billion in assets under management (AUM), VNQ is a dominant and trusted real estate ETF. It invests in a diversified portfolio of about 170 real estate stocks and related REIT index funds, offering high liquidity and a low fee of 0.13%.
- Global X SuperDividend® REIT ETF (SRET)
For those seeking high dividend yields, SRET could be an excellent choice. This ETF focuses on high dividend REITs globally and aims to track the Solactive Global SuperDividend REIT Index.
- Cohen & Steers Real Estate Active ETF
This ETF emphasizes both income and capital appreciation by investing globally in real estate companies and REITs. It targets active management strategies to gain returns beyond passive indices.
These ETFs provide diverse options in the real estate sector, covering US-wide, global, dividend-focused, and actively managed strategies. Noteworthy names such as BlackRock, State Street, JP Morgan, and Fidelity also manage large real estate ETFs, but DFAR, SCHH, VNQ, and SRET stand out as top alternatives.
Apart from real estate ETFs, sector ETFs such as biotech, gold, S&P 500, and China ETFs provide international investing opportunities. Investing through a Roth IRA can help combat taxes on real estate ETF dividends, as reinvested dividends grow tax-free.
It's essential to note that ETFs can be bought and sold like stocks throughout the trading day, providing liquidity. However, investing in a rental property requires property maintenance and can result in total loss if something happens to the property. Additionally, the dividends paid out by real estate ETFs may be treated as taxable income.
For those looking for online broker recommendations for ETF investing, there are numerous resources available for review. Real estate can act as a hedge against inflation, as real estate rents tend to rise with other prices, preserving purchasing power.
- The Dimensional US Real Estate ETF (DFAR), with a Gold Morningstar rating and a dividend yield of 2.83%, is known for its strong risk-adjusted return profile and is considered one of the best performing REIT ETFs.
- Schwab US REIT ETF (SCHH), with a very low expense ratio of 0.07% and $8 billion in assets under management, is a cost-effective option that tracks the Dow Jones US Select REIT Index and offers a 3.06% dividend yield.
- Vanguard Real Estate ETF (VNQ), with $34 billion in assets under management, is a dominant and trusted real estate ETF that invests in a diversified portfolio of about 170 real estate stocks and related REIT index funds, offering high liquidity and a low fee of 0.13%.
- Global X SuperDividend® REIT ETF (SRET), focusing on high dividend REITs globally, aims to track the Solactive Global SuperDividend REIT Index and could be an excellent choice for those seeking high dividend yields.
