3 Best REIT ETFs in Canada for Real Estate Exposure (June 2026)
The best REIT ETFs in Canada include XRE.TO (~0.61% MER), VRE.TO (~0.39%), and ZRE.TO (~0.61%). These ETFs provide diversified exposure to Canadian real estate investment trusts, offering strong income potential, but are sensitive to interest rates and economic conditions affecting property markets.
REIT ETFs are designed for Canadian investors seeking income and exposure to the real estate market without owning physical property. ETFs like XRE.TO, VRE.TO, and ZRE.TO provide diversified access to Canadian real estate investment trusts (REITs), including sectors like residential, retail, office, and industrial properties.
The main appeal of REIT ETFs is income, as they typically offer higher yields than broad equity ETFs. However, they are sensitive to interest rates and economic cycles, which can impact both property values and distributions.
In this guide, we break down the best REIT ETFs in Canada, comparing yield, diversification, fees, and risk so you can choose the right ETF for your TFSA, RRSP, or income-focused portfolio.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top XRE.TO iShares S&P/TSX Capped REIT Index ETF | — | $1.2B | 4.44% | +9.09% | +13.60% |
VRE.TO Vanguard FTSE Canadian Capped REIT Index ETF | — | $288M | 3.06% | +0.59% | +5.68% |
ZRE.TO BMO Equal Weight REITs | — | $644M | 4.39% | +9.26% | +14.58% |
What Is an ETF?
A REIT ETF in Canada is an exchange-traded fund that invests in a portfolio of real estate investment trusts (REITs). These trusts own and operate income-producing properties such as apartments, shopping centres, office buildings, and industrial real estate.
For example, XRE.TO (~0.61% MER) tracks the S&P/TSX Capped REIT Index, offering exposure to major Canadian REITs. VRE.TO (~0.39% MER) provides a lower-cost option with broad real estate exposure, while ZRE.TO (~0.61% MER) uses an equal-weight strategy to reduce concentration risk. RIT.TO (~0.35% MER) offers an alternative real estate-focused ETF structure.
REIT ETFs are commonly used in TFSAs, RRSPs, and income portfolios for their higher yield potential. However, investors should consider interest rate sensitivity and sector concentration when adding REIT ETFs to their portfolio.
The 3 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
iShares S&P/TSX Capped REIT Index ETF
$16.92
+9.09% YTD
Returns
YTD
+9.09%
1Y
+13.60%
3Y
+6.54%
5Y
+2.43%
Vanguard FTSE Canadian Capped REIT Index ETF
$32.26
+0.59% YTD
Returns
YTD
+0.59%
1Y
+5.68%
3Y
+7.09%
5Y
+1.82%
BMO Equal Weight REITs
$24.20
+9.26% YTD
Returns
YTD
+9.26%
1Y
+14.58%
3Y
+9.93%
5Y
+3.87%
Pros & Cons
Pros
- High income potential from real estate distributions
- Diversified exposure to multiple property sectors (residential, retail, industrial)
- Access to real estate without owning physical property
- Can provide inflation protection through rental income growth
Cons
- Sensitive to rising interest rates, which can pressure valuations
- Sector concentration increases exposure to real estate cycles
- Higher MERs compared to broad-market ETFs
- Distributions can fluctuate during economic downturns
Compare These ETFs Head-to-Head
Drill into a side-by-side breakdown of performance, AUM, and yield.
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Frequently Asked Questions
What is the best REIT ETF in Canada?
XRE.TO is one of the most popular REIT ETFs in Canada due to its exposure to large Canadian real estate investment trusts. Investors looking for lower fees may prefer VRE.TO, while ZRE.TO offers an equal-weight approach to reduce concentration risk.
Are REIT ETFs good for income?
Yes, REIT ETFs are commonly used for income because they generate regular distributions from rental income. However, income levels can fluctuate depending on economic conditions and real estate market performance.
Are REIT ETFs good for a TFSA or RRSP?
REIT ETFs can be held in both TFSAs and RRSPs. In a TFSA, distributions and capital gains are tax-free, while in an RRSP, taxes are deferred. Many investors use them for income diversification within a broader portfolio.