Key Takeaways
- • Virtus Real Asset Income ETF (VRAI) led the real estate ETF category with a 23.11% one-year return as of November 2, 2026, according to Finviz data cited by NerdWallet.
- • Nuveen Short-Term REIT ETF (NURE) posted a 17.10% one-year return, ranking second among the five funds listed.
- • iShares Residential and Multisector Real Estate ETF (REZ, 11.28%), Invesco Active U.S. Real Estate ETF (PSR, 11.16%) and iShares Core U.S. REIT ETF (USRT, 10.84%) rounded out the top five.
- • NerdWallet frames real estate ETFs as a liquid, diversified way to gain property exposure, noting that most invest in REITs and are sensitive to interest rate changes.
Summary
NerdWallet published a ranking of the five best-performing real estate ETFs by one-year return on November 2, 2026, using data from Finviz current as of that date. Virtus Real Asset Income ETF (VRAI) topped the list at 23.11%, followed by Nuveen Short-Term REIT ETF (NURE) at 17.10%. The remaining entries were iShares Residential and Multisector Real Estate ETF (REZ) at 11.28%, Invesco Active U.S. Real Estate ETF (PSR) at 11.16%, and iShares Core U.S. REIT ETF (USRT) at 10.84%. NerdWallet notes the data is provided for informational purposes only.
The article outlines the structure of real estate ETFs, which most often invest in real estate investment trusts (REITs) rather than physical property. Per the article, the fund wrapper offers diversification across many property owners, intraday liquidity that direct property ownership lacks, and passive income potential, since REITs are required to distribute at least 90% of their income as dividends. NerdWallet also positions these funds as a possible hedge against inflation, as rents tend to rise alongside other prices.
NerdWallet lists several drawbacks. Real estate ETFs can be affected when interest rates are elevated or rising, because higher rates raise the cost of borrowing to build or buy property. Dividends paid by the funds may be taxable as income, although the article notes that holding the funds in a Roth IRA can shelter reinvested dividends from tax. The author and editor stated they held no positions in the funds discussed at the time of publication.
The article outlines the structure of real estate ETFs, which most often invest in real estate investment trusts (REITs) rather than physical property. Per the article, the fund wrapper offers diversification across many property owners, intraday liquidity that direct property ownership lacks, and passive income potential, since REITs are required to distribute at least 90% of their income as dividends. NerdWallet also positions these funds as a possible hedge against inflation, as rents tend to rise alongside other prices.
NerdWallet lists several drawbacks. Real estate ETFs can be affected when interest rates are elevated or rising, because higher rates raise the cost of borrowing to build or buy property. Dividends paid by the funds may be taxable as income, although the article notes that holding the funds in a Roth IRA can shelter reinvested dividends from tax. The author and editor stated they held no positions in the funds discussed at the time of publication.
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