9 Best Real Estate Stocks & ETFs For 2025

1.iShares Core U.S. REIT ETF (USRT)

As a fund under iShares, the iShares Core U.S. REIT ETF (USRT) remains the best bet for real-estate investors for the year 2025. It has an ultra-low expense ratio of just 0.08%. USRT has exposure to various US REITs that focus on businesses and commercial real estate.

Its yield is around 3.4%. USRT offers reliable dividends with stable long-term growth. It is one of the best performing ETFs and is ideal for those looking for low-cost options to dip their toes into the real estate market.

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Features:

Diverse REIT Holdings: USRT gives investors an opportunity to invest in different types of U.S. real estate investment trusts (REITs) like retail, office, and industrial REITs.
Minimal Tracking Risk: The performance of the ETF perstently follows its benchmark index, which means it participates fully with the overall movement of America’s real estate market.
Very Liquid: USRT’s high volume of trades gives investors flexibility to buy and sell the ETF easily without causing drastic changes in the price.

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2.JPMorgan BetaBuilders MSCI U.S. REIT ETF (BBRE)

The ETF most attractive for real estate investment in 2025 is likely to be the JPMorgan BetaBuilders MSCI U.S. REIT ETF (BBRE). It charges a very low expense ratio of 0.07 percent, while also tracking the MSCI U.S. REIT Index, which gives BBRE clients broad access to U.S. real estate investment trusts (REITs).

This ETF offers investors a low-cost way to gain exposure to high-quality, diversified real estate assets, providing consistent returns along with a generous 3.6 percent dividend yield. BBRE is fit for long-term investors who wish to grow their wealth and protect their investment in real estate.

Features:

Tracking MSCI Indices: BBRE tracks the MSCI US REIT Index, which focuses on large capitalization and mid capitalization US real estate investment trusts.
Efficiency Costs: BBRE’s expense ratio of 0.07% is one of the lowest in the industry, making it one of the cheapest ways to invest in the US REIT sector.
Liberal sectoral Representation: Participants from various subsectors of real estate, including multifamily apartments, single family homes, and commercial offices, are included in the ETF which gives exposure to various sectors within the US real estate market.

3.Vanguard Real Estate ETF (VNQ)

Real estate investors in 2025 will be pleased to know that the Vanguard Real Estate ETF (VNQ) is one of the best options available. It has an expense ratio of 0.12% which provides coverage for most U.S. real estate sectors, including commercial real estate and REITs.

Moreover, VNQ has a strong portfolio of real estate investments trusts that ensures consistent growth potential. With a dividend yield of 3.9%, this investment is a great option for those looking to gain long-term income and appreciation for capital in the real estate market.

Features:

Broad Coverage of REITS markets: VNQ allocates funds to a diversified portfolio of real estate investment trusts around the world.
Strong ROI Over Time: The ETF has a track record of stable returns, therefore, it is a secure option for those investing in real estate.
Low Expense Costs: Vanguard’s philosophy on low-cost services is apparent through the ETF’s low expense ratio, which ensures inexpensive exposure to real estate.

4.Real Estate Select Sector SPDR Fund (XLRE)

In 2025, The Real Estate Select Sector SPDR Fund (XLRE) is an excellent option for investors in real estate. It has an expense ratio of 0.13%, which allows for targeted investment in real estate in the S&P 500. XLRE invests in large, mature real estate companies that include REITs and commercial real estate.

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This ETF has an excellent dividend yield of 3.3%, making it suitable for investors looking for both income and appreciation from the real estate sector.

Features:

S&P 500 Real Estate Focus: XLRE funds only invest in publicly traded real estate companies within the S&P 500 Index which provides access to well-established firms.
Sector Specific Targeting: This sub-fund performs a stock selection of the real estate sector separately and independently of the general economy allowing investment into real estate with no hindrance from other sectors.
Liquidity and Accessibility: Selling and buying shares of XLRE can be done in great volumes due to its high liquidity without causing any changes to the price.

5.ProShares S&P 500 Real Estate ETF (REZ)

The ProShares S&P 500 Real Estate ETF (REZ) is a smart pick for real estate investments in 2025. It has an expense ratio of 0.48% as well as closely tracks the real estate part of the S&P 500 by focusing on real estate investment trusts (REITs) and other real estate related companies.

REZ is perfect for investors looking for quality large cap real estate stocks because it provides a stable dividend yield of3.0% and established growth potential, as well as reliable income.

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Features:

Exposure Note: REZ only invests in real estate stocks that are constituent members of the S&P 500 Index employing a top down approach in selecting stocks in that industry.
Dividend Investing Focus: The ETF specifically targets real estate operating and development companies (REITs), allowing for diversification into income-producing real estate assets.
Investment Through REITs: REZ focuses on non-diversified real estate investment trusts which pay dividends on shares illustrating value in the company.

6.Schwab U.S. REIT ETF (SCHH)

Real estate investors in 2025 may find appealing options within the Schwab U.S. REIT ETF (SCHH). Its low expenses at 0.07% enabled investors to gain broad exposure to U.S real estate investment trusts (REITs) covering a variety of properties ranging from office buildings to shopping centers.

Moreover, SCHH pays out a strong dividend of 3.8%, which enhances its value for investors looking for a passive income coupled with growth. SCHH offers an effortless method to diversify within the real estate sector without incurring high costs.

Features:

Myriad U.S. REITs Investment Focus: SCHH puts money in a number of U.S. real estate investment trusts that encompass a diverse range of properties such as stores, warehouses, and even offices.
Cost Effective Approach: SCHH is quite economical as it costs only 0.07%, making it easy to invest in American real estate or at least gain exposure to them.
Significant Liquidity: With its substantial volume trading, SCHH enables investors to buy or sell freely without inordinate price levels disrupting the markets.

7.Global X U.S. Residential Real Estate ETF (RESN)

In 2025, The Global X U.S. Residential Real Estate ETF (RESN) will surely be at the top of the list for investors eyeing the residential real estate sector. While it focuses on residential REITs and housing-related firms, RESN maintains an expense ratio of 0.30%.

It provides access to the increasing demand for residential real estate, including rental properties and new housing construction.

With a solid 3.5 percent dividend yield, RESN enables investors to take advantage of the booming U.S housing market while earning steady income at the same time.

Features:

Focused on Residential Real Estate: Directly invests in US residential REITs and housing associates including rental and homebuilding companies.
Exposure to Housing Trends: The ETF is directly linked to the US housing market and benefits from residential demand and homeownership trends.
Targeted Growth Potential RESN seeks to benefit from the expansion of the rental and housing development markets within real estate.

8.Hoya Capital Housing ETF (HOMZ)

In 2025, the best choice for real estate investors is most likely the Hoya Capital Housing ETF (HOMZ). HOMZ targets the housing sector including residential REITs, homebuilders, and other housing related companies. With an expense ratio of 0.50%, it is ideal for investors looking to spend less.

HOMZ offers a diversified portfolio focused on both residential and commercial real estate, enabling investors to capitalize on the entire housing market. Additionally, having a 3.1% dividend yield makes HOMZ favorable for income and growth investors in the changing housing market.

Features:

Broad Housing Exposure: HOMZ has the biggest allocation to Realty Income Corporation along with a blend of other REITs, homebuilders, and property management companies.
Focus on Housing Market Dynamics: The ETF invests in both residential and commercial properties, thus capturing the whole housing market.
Emphasis on Growth and Income: With the combination of investing in real estate to receive regular dividends alongside the appreciation potential of the housing market, HOMZ achieves capital growth.

9.First Trust S&P 500 Dividend Aristocrats ETF (SPYD)

The First Trust S&P 500 Dividend Aristocrats ETF (SPYD) will be an attractive option for people interested in dividend paying real estate stocks in 2025. SPYD tracks the S&P 500 real estate investment trusts (REITs) and boasts an expense ratio of 0.07, focusing on high-quality, dividend paying companies in the S&P 500 real estate sector.

Combined with its expense ratio, it proves very attractive to income-oriented investors by providing a strong dividend yield of 4.4%. SPYD offers capital appreciation through real estate investments along with dependable income, perfect for investors looking for consistent returns.

Features:

Dividend Aristocrats Focus: SPYD invests in S&P 500 constituents that have increased dividends for at least 25 years in a row.
High Yield Strategy: The ETF was created for investors whose primary focus is receiving income from their investment.
Large-Cap Exposure: SPYD invests in large established companies in different sectors with a focus on the real estate and other dividend paying industries.

Conclusion

To conclude this analysis, the top real estate stocks and ETFs for 2025 have real growth potential with steady income and targeted exposure. ETFs such as the iShares Core U.S. REIT ETF (USRT)

JPMorgan BetaBuilders MSCI U.S. REIT ETF (BBRE), and Vanguard Real Estate ETF (VNQ) offer low-cost, diversified portfolios, ideal for those looking to spend on real estate investment without much risk and with increased return.