Key Takeaways
- • CBL & Associates Properties (CBL) was the best-performing publicly traded REIT by one-year return as of October 1, 2026, up 74.63%, according to Finviz data cited by NerdWallet.
- • Diversified Healthcare Trust (DHC) followed closely at 74.55%, with Postal Realty Trust (PSTL) up 45.95% and Welltower (WELL) up 27.19% among the leaders.
- • The top REIT ETF by one-year return was First Trust S&P REIT Index Fund (FRI) at 4.12%, with a 0.50% net expense ratio; the best-performing REIT ETFs posted single-digit gains.
- • Benchmarks cited: the S&P 500 three-year total return was 20.68% (as of August 3, 2026) versus 33.3% for the FTSE NAREIT All Equity REITs Index (as of June 2026).
- • REITs must distribute at least 90% of taxable income as dividends, and publicly traded REITs offer the greatest liquidity and transparency compared with nontraded and private REITs.
Summary
NerdWallet's October 1, 2026 guide ranks recent top performers among publicly listed REITs, REIT ETFs and no-load REIT mutual funds, with data sourced from Finviz and Morningstar and current as of October 1, 2026. Among individual stocks, CBL & Associates Properties led with a 74.63% one-year return, narrowly ahead of Diversified Healthcare Trust at 74.55%. Postal Realty Trust (45.95%), LXP Industrial Trust (29.46%), Welltower (27.19%), Industrial Logistics Properties Trust (25.95%) and Curbline Properties (23.65%) rounded out the list.
Among REIT ETFs, First Trust S&P REIT Index Fund (FRI) returned 4.12% over the past year, followed by JPMorgan BetaBuilders MSCI U.S. REIT ETF (4.00%), iShares Core U.S. REIT ETF (3.98%) and State Street SPDR Dow Jones REIT ETF (3.77%). Net expense ratios ranged from 0.08% for USRT to 0.50% for FRI. For mutual funds, filtered to no-load funds with minimums below $3,000 and expense ratios below 1%, the five-year leaders were Empower Real Estate Index Inv (3.61%), Cohen & Steers Real Estate Securities F (2.76%), JHancock Real Estate Securities 1 (2.53%), VY CBRE Real Estate S (2.48%) and Fidelity Real Estate Investment Portfolio (2.24%).
The article frames REITs against benchmarks: as of June 2026, the FTSE NAREIT All Equity REITs Index posted a three-year total return of 33.3% and a five-year return of 20%, while the S&P 500 returned 20.68% and 13.05% over the same periods, per the article's cited dates. NerdWallet notes that benchmarks are one metric and do not establish REITs as superior to stocks.
Structurally, REITs must distribute at least 90% of taxable income to shareholders, invest at least 75% of total assets in real estate or cash, and meet other IRS requirements. Equity REITs own and operate properties, mortgage REITs hold property debt and typically carry higher risk and higher dividends, and hybrid REITs combine both. Publicly traded REITs, which number more than 225 in the U.S., offer better governance, transparency and liquidity than public nontraded or private REITs, which can carry illiquidity periods of eight years or more according to FINRA, minimums of $25,000 or more, and valuation delays that the SEC notes can extend 18 months past offering close. The article also cites heavy debt as a disadvantage, particularly for private REITs.
Among REIT ETFs, First Trust S&P REIT Index Fund (FRI) returned 4.12% over the past year, followed by JPMorgan BetaBuilders MSCI U.S. REIT ETF (4.00%), iShares Core U.S. REIT ETF (3.98%) and State Street SPDR Dow Jones REIT ETF (3.77%). Net expense ratios ranged from 0.08% for USRT to 0.50% for FRI. For mutual funds, filtered to no-load funds with minimums below $3,000 and expense ratios below 1%, the five-year leaders were Empower Real Estate Index Inv (3.61%), Cohen & Steers Real Estate Securities F (2.76%), JHancock Real Estate Securities 1 (2.53%), VY CBRE Real Estate S (2.48%) and Fidelity Real Estate Investment Portfolio (2.24%).
The article frames REITs against benchmarks: as of June 2026, the FTSE NAREIT All Equity REITs Index posted a three-year total return of 33.3% and a five-year return of 20%, while the S&P 500 returned 20.68% and 13.05% over the same periods, per the article's cited dates. NerdWallet notes that benchmarks are one metric and do not establish REITs as superior to stocks.
Structurally, REITs must distribute at least 90% of taxable income to shareholders, invest at least 75% of total assets in real estate or cash, and meet other IRS requirements. Equity REITs own and operate properties, mortgage REITs hold property debt and typically carry higher risk and higher dividends, and hybrid REITs combine both. Publicly traded REITs, which number more than 225 in the U.S., offer better governance, transparency and liquidity than public nontraded or private REITs, which can carry illiquidity periods of eight years or more according to FINRA, minimums of $25,000 or more, and valuation delays that the SEC notes can extend 18 months past offering close. The article also cites heavy debt as a disadvantage, particularly for private REITs.
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