Property Markets
Real Estate
Real estate markets include REITs and property investments for income and growth. Returns depend on property values, rental income, and interest rates.
REIT/ETF Table
Top 20 REIT/ETFs by Change %
| REIT/ETF | Ticker | Price | Change % ▼ | Change $ | Volume | Market Cap | 52W Change |
|---|---|---|---|---|---|---|---|
| Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares | VNQI | $46.84 | +1.85% | +$0.85 | 274,804 | — | +20.29% |
| iShares Mortgage Real Estate Capped ETF | REM | $22.44 | +1.26% | +$0.28 | 783,060 | — | +5.25% |
| iShares Global REIT ETF | REET | $25.14 | +0.12% | +$0.03 | 1,179,853 | — | +5.99% |
| State Street SPDR Dow Jones REIT ETF | RWR | $98.58 | -0.44% | $0.44 | 108,969 | — | +1.27% |
| Schwab U.S. REIT ETF | SCHH | $20.88 | -0.76% | $0.16 | 10,142,876 | — | +0.92% |
| Vanguard Real Estate Index Fund ETF Shares | VNQ | $88.50 | -0.81% | $0.72 | 6,665,346 | — | +0.92% |
| Fidelity MSCI Real Estate Index ETF | FREL | $26.89 | -0.81% | $0.22 | 229,795 | — | +1.01% |
| iShares U.S. Real Estate ETF | IYR | $93.78 | -0.98% | $0.93 | 9,981,005 | — | +2.25% |
| State Street Real Estate Select Sector SPDR ETF | XLRE | $40.14 | -1.42% | $0.58 | 12,371,618 | — | -0.02% |
| State Street Real Estate Select Sector SPDR ETF | XLRE | $40.14 | -1.42% | $0.58 | 12,371,618 | — | — |
Key metrics
- Cap RateNet operating income divided by property value; core yield metric.
- FFO/AFFOCash flow metrics for REITs; adjust net income for non‑cash items.
- Occupancy & Lease TermStability of cash flows and exposure to renewals.
Fees & costs
- Management/UpkeepTypical: ~5–10% of rentApplies to direct property; REITs embed costs in ER.
Risks
- Rate sensitivityMediumHigher yields can pressure valuations and financing.
- Tenant/VacancyMediumCash flow concentration by tenant/sector.
How to get exposure
- REIT ETFsDiversified real estate exposure via listed funds.VNQ (VNQ)
- Direct propertyHigher control, lower liquidity.
Real Estate Tracker
Common mistakes and fixes
- Over-leveraging in rate-sensitive environments
- Ignoring tenant/sector concentration in REITs
- Underestimating liquidity needs for private vehicles
Fix: set target weights, automate contributions, and rebalance on schedule.
Top instruments to use
Vanguard Real Estate ETF (VNQ)Prologis (PLD)
How to pick
- Sector diversification
- Reasonable fees
- Balance rate sensitivity
Real Estate playbook
Public REIT core
- Diversify across sectors (residential, industrial)
- Check FFO payout and leverage
- Mind rate sensitivity
Private exposure
- Consider REIT funds/interval funds
- Assess liquidity terms
- Underwrite fees and performance
Hybrid approach
- Blend REITs with bonds as ballast
- Use dollar-cost averaging
- Track regional and cap-rate trends
What to watch
Mortgage ratesCap ratesVacancy & rentsLeverage & covenants
Risk rules
- Define target allocation before buying
- Position size based on risk, not conviction
- Rebalance on schedule or bands
- Prefer low-cost, diversified vehicles for core
Execution tips
- Use limit orders for thin products
- Mind bid/ask spreads and liquidity windows
- Automate contributions where possible