What are Real Estate ETFs?

Real estate investment trusts (REITs) are companies that own or finance income-producing real estate. They’re required to distribute a significant portion of their income as dividends, making them attractive to income-seeking investors. Real Estate ETFs (exchange-traded funds) are a basket of these REITs, offering diversified exposure to the real estate market without the need to buy individual properties or REITs. This diversification helps to mitigate risk, as the performance of one REIT won’t significantly impact your overall portfolio.

Diversification Benefits of Real Estate ETFs

One of the key advantages of using Real Estate ETFs is