From 24/7 Wall St. · Ryne Mauck · · 1m 20s
3 Ways to Own Income-Producing Real Estate
Three ETFs offer income from real estate with fees starting at 0.08% and yields up to 3.74%.
In brief
Three ETFs offer income from real estate with fees starting at 0.08% and yields up to 3.74%. Three U.S. real estate ETFs provide income through landlords with fees ranging from 0.08% to 0.37% and yields between 2.5% and 3.7%. Originally reported by 24/7 Wall St..
Three ETFs Chase Same Landlords
Three ETFs track U.S. landlords but charge fees from 0.08% to 0.37% while delivering different income levels.
USRT: Lowest Fee, Best Returns
USRT charges 0.08% and delivered 13% one-year returns with a 2.8% trailing yield.
VNQ: Highest Income, Broad Mix
VNQ pays 3.7% trailing yield with 0.13% fee and returned 7% over one year.
IYR: Highest Fee, Lowest Income
IYR charges 0.37% fee and yields 2.5% with 6% one-year returns.
Why Landlord Stocks Pay So Much
REITs must pay out at least 90% of taxable income as dividends to qualify for tax treatment.
USRT Holds Only Physical Buildings
USRT tracks U.S.-listed equity REITs excluding infrastructure, mortgage, and timber REITs.
VNQ Offers Broadest Real Estate Mix
VNQ covers publicly traded equity REITs and other real estate-related investments with 0.13% fee.
IYR Includes Non-REIT Companies
IYR tracks U.S. equities in the real estate sector including developers and property managers.
Rising Rates Pose Biggest Risk
REITs face higher borrowing costs and competition from Treasury yields as rates rise.
The bottom line
Three U.S. real estate ETFs provide income through landlords with fees ranging from 0.08% to 0.37% and yields between 2.5% and 3.7%.
