What is a Real Estate Investment Trust ETF?

A Real Estate Investment Trust (REIT) ETF is a fund that pools money to invest in a basket of REITs, which own or finance income-producing real estate. These funds allow investors to gain exposure to the property sector without buying individual buildings. Both USRT and XLRE are examples of such ETFs, focusing on the US real estate market. They provide diversification across various property types, offering a straightforward way to participate in the sector’s growth and income potential.

How do expense ratios affect ETF returns?

An expense ratio is the annual fee deducted from an ETF’s assets to cover operational costs. A lower expense ratio generally means more of your investment remains to compound over time. Both USRT and XLRE have an identical expense ratio of 0.08%, meaning their annual cost drag on returns is the same. This low cost structure is beneficial for long-term holders, as minimal fees help preserve net returns compared to higher-fee alternatives.

Why does fund size matter for liquidity?

Fund size, or net assets, can influence liquidity and trading costs. Larger funds often have higher trading volumes, which can lead to tighter bid-ask spreads, making them cheaper to buy and sell. XLRE has $7.8 billion in net assets, while USRT has $4.3 billion. Although both are substantial, XLRE’s larger size may offer slightly better liquidity for frequent traders, potentially reducing transaction costs compared to smaller, less actively traded funds.

What are the main differences in holdings between USRT and XLRE?

Both USRT and XLRE hold major US REITs like Welltower (WELL), Prologis (PLD), and Equinix (EQIX). However, they differ in specific weights and inclusion of other stocks. USRT includes Iron Mountain (IRM) and Realty Income (O) in its top ten, whereas XLRE includes American Tower (AMT) and CBRE Group (CBRE). USRT tends to have a more even distribution among its top holdings, while XLRE is more concentrated in its leading positions.

How do the dividend yields of USRT and XLRE compare?

Dividend yield represents the annual income from distributions relative to the fund's price. XLRE offers a higher yield of 3.39% compared to USRT’s 2.77%. Investors seeking current income might find XLRE more appealing due to this higher payout. However, a higher yield does not always guarantee better total returns, as it can reflect differences in underlying holdings or sector sub-weightings. It is essential to consider yield alongside growth potential.

Which fund has a longer operating history?

USRT was launched on May 1, 2007, giving it a longer track record than XLRE, which began on October 7, 2015. A longer history allows investors to observe how a fund has tracked its index and handled market cycles over time. While USRT’s extended operation provides more historical data for analysis, XLRE’s newer structure reflects recent indexing methodologies. Both funds are managed by large, reputable asset managers.

How should I choose between these two ETFs for my portfolio?

Your choice depends on specific investment goals. If you prioritise higher current income and slightly better liquidity, XLRE’s 3.39% yield and $7.8 billion assets may be attractive. If you prefer a broader distribution of weights across subsectors and a longer operational history, USRT might fit better. Both have the same 0.08% expense ratio. Consider how each fund’s characteristics align with your need for income versus diversified exposure within the real estate sector.

What sectors do these REIT ETFs cover?

Both funds provide exposure to various real estate subsectors, including healthcare, industrial, data centres, and retail. The specific mix varies between them. USRT mentions a focus across healthcare, industrial, and data centre REITs in its top holdings. XLRE includes service and industrial REITs as well. Since detailed sector weights are not available in the provided data, investors should review each fund’s current holdings to understand the precise subsector allocation.

How do these funds track their respective markets?

Typically, ETFs track a specific index by holding the same securities in similar proportions. For USRT and XLRE, the exact index names and methodologies are not available in the provided data. However, both aim to replicate the performance of the US real estate sector. Differences in tracking may arise from how each fund manages its portfolio against its benchmark, affecting how closely their returns align with the overall market movement.

Can I buy these ETFs through a standard brokerage account?

Yes, both USRT and XLRE are exchange-traded funds, meaning they trade on stock exchanges like regular shares. You can buy and sell them through most standard brokerage accounts during market hours. No special arrangements are typically needed. Ensure your chosen platform offers access to US-listed ETFs. Trading fees and minimum investment requirements vary by broker, so check these practical details before placing an order to invest in either fund.

What is the educational purpose of this comparison?

This comparison aims to help beginners understand the structural and financial characteristics of ETFs. By examining fees, holdings, yields, and history, investors can learn to evaluate fund data effectively. It is important to remember that this information is for educational purposes only and does not constitute financial advice. Always conduct your own research or consult a qualified professional before making investment decisions based on these metrics.

USRT vs XLRE

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare iShares Core US REIT ETF (USRT) and Real Estate Select Sector SPDR ETF (XLRE). This page reviews fees, holdings, dividends and how each fund tracks its market. Both share an 0.08% expense ratio, but differ in net assets, yield and inception dates. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

USRT

Metric

XLRE

0.08%

Expense Ratio

0.08%

2.77%

Dividend Yield

3.39%

$4.35B

Net Assets

$7.77B

127

Holdings

May 1, 2007

Inception Date

Oct 7, 2015

–

Index Tracked

–

Real Estate

Fund Category

Real Estate

Both funds charge the same annual fee.

Shared Top Holdings

Holding	USRT	XLRE
WELLWelltower Inc.	8.89%	11.33%
PLDPrologis, Inc.	7.37%	8.71%
EQIXEquinix, Inc.	6.22%	7.04%
SPGSimon Property Group, Inc.	4.49%	4.55%
DLRDigital Realty Trust, Inc.	4.42%	4.48%
PSAPublic Storage	4.12%	4.58%
VTRVentas, Inc.	3.88%	4.42%
VMRKVivmark Residential	3.85%	4.29%

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Investment Analysis

USRT

Pros

USRT has a low expense ratio of 0.08% and long history, which makes it a mature and cost-effective vehicle for gaining broad US REIT exposure.
The fund’s $4.3 billion size gives good liquidity for most retail investors while maintaining a broad top-10 mix across healthcare, industrial and data centre REITs.
USRT offers a more even distribution of weights among its top holdings, which can reduce reliance on any single company or subsector within the real estate universe.

Considerations

Dividend yield of 2.77% is lower than XLRE’s 3.39%, so investors prioritising current income may see a shortfall compared with more income-tilted REIT funds.
The fund’s index methodology and sector weights are not available in the supplied data, which limits transparency when comparing it with other REIT ETFs.
Despite its age, USRT is smaller than XLRE, which may result in slightly wider bid-ask spreads and higher trading costs for larger or more frequent transactions.

XLRE

Pros

XLRE’s $7.8 billion asset base and 0.08% expense ratio combine strong scale with low ongoing costs, supporting efficient and liquid trading for investors.
With a 3.39% dividend yield, XLRE offers a higher income stream than many broad REIT ETFs, appealing to investors focused on recurring distributions.
The concentration in high-quality names such as WELL, PLD and EQIX can deliver focused exposure to leading US REIT operators within the real estate sector.

Considerations

XLRE’s index methodology and sector weights are not available in the provided data, which may hinder detailed comparison against other real estate or total market funds.
The top-10 holdings include significant overlap with USRT, but also add exposure to service and industrial REITs, potentially duplicating existing real estate allocations.
With inception in 2015, XLRE has a shorter operating history than USRT, so its long-term tracking and performance record through full cycles is less established.

About USRT and XLRE

USRT (USRT)

The iShares Core US REIT ETF provides investors with diversified exposure to the United States real estate market. This fund tracks a broad index of US equity real estate investment trusts, offering access to a wide range of property sectors, including residential, commercial, industrial, and retail real estate. With a competitive expense ratio of 0.08%, it is designed to be a cost-effective way for investors to include real estate in their portfolios. The ETF holds 127 companies, providing a snapshot of the broader US REIT market. It has a dividend yield of approximately 2.77%, reflecting income generated from underlying holdings. Launched in May 2007, the fund has net assets of USD 4.35 billion. As with any investment, capital values can fluctuate, and past performance does not guarantee future results.

XLRE (XLRE)

The Real Estate Select Sector SPDR ETF (XLRE) offers investors a focused way to gain exposure to the real estate sector within the broader S&P 500. Designed to track the performance of real estate companies, this fund holds a concentrated portfolio of 33 key holdings, primarily consisting of major Real Estate Investment Trusts (REITs) and real estate management firms. With a low expense ratio of 0.08%, it is a cost-effective option for those looking to diversify into property assets without purchasing physical real estate. The fund provides regular income, boasting a dividend yield of 3.39%, which can be appealing for income-focused investors. Established in October 2015, XLRE manages net assets of USD 7.77 billion. Like any investment, its value can fluctuate based on interest rates, economic conditions, and the performance of the underlying holdings, so it’s important to consider these factors alongside your own financial situation.

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USRT vs XLRE

Fund Snapshot

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USRT

Pros

Considerations

XLRE

Pros

Considerations

About USRT and XLRE

Buy USRT or XLRE in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What is a Real Estate Investment Trust ETF?

How do expense ratios affect ETF returns?

Why does fund size matter for liquidity?

What are the main differences in holdings between USRT and XLRE?

How do the dividend yields of USRT and XLRE compare?

Which fund has a longer operating history?

How should I choose between these two ETFs for my portfolio?

What sectors do these REIT ETFs cover?

How do these funds track their respective markets?

Can I buy these ETFs through a standard brokerage account?

What is the educational purpose of this comparison?

Fund Snapshot

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About USRT and XLRE