REITs have been sideways for months as Treasury yields stayed stubbornly high, but that could change in 2026. As bond yields finally decline, income-hungry investors might rotate back into high-yielding REITs.
VNQ (Vanguard Real Estate) is the go-to for retirees—tracks 153 stocks across 17 sectors, yields 3.62%, and charges only 0.13% in fees. Top holdings: Welltower (6.8%), Prologis (6.7%), American Tower (4.8%).
SCHH (Schwab U.S. REIT) is purer play—only invests in property-owning REITs, no mortgage REITs or non-REIT real estate. 124 holdings, 3.6% yield, ultra-low 0.07% expense ratio.
XLRE (Real Estate Select Sector) leans growth—concentrated bet (31 stocks) on data center, logistics, and telecom tower REITs poised to boom from cloud/AI/e-commerce expansion. 3.48% yield, 0.08% fees.
All three are liquid, low-cost entry points into the sector. Pick your risk tolerance: stable income (VNQ), pure REIT exposure (SCHH), or growth blend (XLRE).
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3 REIT ETFs Heating Up in 2026: Here's What You Need to Know
REITs have been sideways for months as Treasury yields stayed stubbornly high, but that could change in 2026. As bond yields finally decline, income-hungry investors might rotate back into high-yielding REITs.
VNQ (Vanguard Real Estate) is the go-to for retirees—tracks 153 stocks across 17 sectors, yields 3.62%, and charges only 0.13% in fees. Top holdings: Welltower (6.8%), Prologis (6.7%), American Tower (4.8%).
SCHH (Schwab U.S. REIT) is purer play—only invests in property-owning REITs, no mortgage REITs or non-REIT real estate. 124 holdings, 3.6% yield, ultra-low 0.07% expense ratio.
XLRE (Real Estate Select Sector) leans growth—concentrated bet (31 stocks) on data center, logistics, and telecom tower REITs poised to boom from cloud/AI/e-commerce expansion. 3.48% yield, 0.08% fees.
All three are liquid, low-cost entry points into the sector. Pick your risk tolerance: stable income (VNQ), pure REIT exposure (SCHH), or growth blend (XLRE).