A REIT ETF holds a basket of real estate investment trusts in one fund, so a single purchase spreads your money across many landlords and property types. This page compares the main Canadian REIT ETFs on fees, holdings, weighting and yield, covers global real estate funds, and explains how the distributions are taxed and which account to hold them in. It is part of WealthNorth’s guide to real estate investing in Canada; for the wider world of index funds, see the ETFs and index funds hub.
Canadian REIT ETFs compared
| ETF | Name | Provider | MER | Holdings | Yield | Weighting |
|---|---|---|---|---|---|---|
| VRE | Vanguard FTSE Canadian Capped REIT Index ETF | Vanguard Canada | 0.32% | 18 | ~2.81% | Market-cap weighted (capped) |
| XRE | iShares S&P/TSX Capped REIT Index ETF | BlackRock (iShares) | 0.60% | 14 | ~4.47% | Market-cap weighted (capped) |
| ZRE | BMO Equal Weight REITs Index ETF | BMO Global Asset Management | 0.61% | 18 | ~4.67% | Equal weight |
MER and holdings source: Each provider's fund page, fund fact sheet or ETF Facts (Vanguard Investments Canada Inc., BlackRock Asset Management Canada Ltd., BMO Global Asset Management), as at August 31, 2026. Yield source: each provider's own fund page or fact sheet, using the provider's distribution yield (the most recent distribution annualized): VRE and ZRE as at August 31, 2026, XRE as at October 5, 2026. Distribution yield moves daily with unit price – verify the current figure before relying on it; MER and holdings change far less often.
What separates them:
- Fees. VRE’s MER is 0.32%, against 0.60% for XRE and 0.61% for ZRE. Over many years the fee difference compounds.
- Weighting. VRE and XRE weight REITs by market value (with caps on the largest), so a few big trusts make up much of the fund. ZRE weights each REIT equally, which gives more exposure to smaller trusts.
- Holdings. VRE holds 18 REITs, XRE 14 and ZRE 18.
- Yield. Distribution yields move daily with unit prices and differ with each fund’s mix; the table’s yields were verified on the date shown, so check the current figure before comparing.
Actively managed Canadian REIT funds also exist; compare their MER with the index funds above before choosing one.
What a Canadian REIT ETF holds
Canadian REIT ETFs spread across retail (shopping centres and grocery-anchored plazas), residential (apartment buildings), industrial (warehouses and logistics), office, healthcare and seniors’ housing, and diversified REITs. The exact mix changes as REIT values move and is published on each provider’s fund page. Because the Canadian REIT market is small, even a diversified Canadian REIT ETF holds a small number of trusts, all in one country: 18 in VRE, 14 in XRE and 18 in ZRE.
Global and US real estate ETFs
Investors who want real estate outside Canada can use a global real estate ETF listed in Canada (for example iShares’ global real estate fund, CGR) or US-listed funds such as Vanguard’s VNQ (US REITs) and VNQI (international REITs), which trade in US dollars. US-listed funds carry foreign withholding tax and currency conversion costs; see foreign dividend withholding tax and asset location for which account suits each. Confirm current fees and holdings on the provider’s site.
REIT ETF vs individual REITs
| Factor | REIT ETF | Individual REITs |
|---|---|---|
| Diversification | Many REITs in one purchase | Only what you pick |
| Research | Little beyond choosing the fund | Ongoing: payout ratios, debt, occupancy |
| Management fee | The fund’s MER | None |
| Sector control | Follows the index | You choose sectors |
| Single-REIT risk | Spread out | A distribution cut hits you directly |
How to judge an individual REIT, and how REITs work in general, is covered in REITs in Canada; individual picks are in the best Canadian REITs.
Where to hold REIT ETFs
| Account | Tax treatment of distributions |
|---|---|
| TFSA | Interest, dividends and capital gains earned in a TFSA are generally tax-free, even when you withdraw them. |
| RRSP | Income earned in an RRSP is usually exempt from tax as long as the funds remain in the plan. You generally pay tax when you receive payments from an RRSP. |
| Non-registered | Taxed each year by component (T3 slip); return of capital adjusts your cost base |
The split between other income, capital gains and return of capital is explained in REITs in Canada. The broader choice between accounts is covered in TFSA vs RRSP for beginners.
How to buy a REIT ETF
- Open a brokerage account.
- Search for the ticker (VRE, XRE or ZRE).
- Place a limit or market order.
- Distributions arrive monthly; reinvest them or let them accumulate.
The general process is in how to buy ETFs in Canada.
REIT ETFs in a wider portfolio
All-in-one ETFs such as XEQT already hold some REITs through their Canadian and global equity funds, and a home or rental property is a large real estate position on its own, so adding a REIT ETF increases real estate exposure on top of both. How much to hold is an asset allocation question; see asset allocation by age. For income-focused portfolios, compare REIT ETFs with ETFs for retirement income and dividend ETFs. The case for REITs against owning a building directly is in REIT vs rental property.
Sources
The figures and rules on this page come from these sources, last checked against them between September 25, 2026 and October 1, 2026. How we check facts.
- BlackRock iShares: iShares S&P/TSX Capped REIT Index ETF | XRE
- BMO Global Asset Management: ZRE - Factsheet
- Canada Revenue Agency: Registered Retirement Savings Plan (RRSP)
- Canada Revenue Agency: What is a TFSA
- Vanguard: FTSE Canadian Capped REIT Index ETF | Vanguard Canada