REIT ETFs give you diversified real estate exposure through a single ticker. Instead of picking individual REITs, you buy one ETF and get 15–25 Canadian REITs across residential, industrial, retail, office, and healthcare sectors. Here is every REIT ETF available to Canadian investors. For the broader passive-investing framework, start with our ETFs and index funds hub.
Canadian REIT ETFs
| ETF | Name | MER | Yield | Holdings | Weighting |
|---|---|---|---|---|---|
| VRE | Vanguard FTSE Canadian Capped REIT | 0.38% | ~4.0% | 17 | Market-cap weighted |
| XRE | iShares S&P/TSX Capped REIT | 0.61% | ~4.2% | 18 | Market-cap weighted (capped) |
| ZRE | BMO Equal Weight REITs | 0.61% | ~4.5% | 23 | Equal weight |
| RIT | CI First Asset Canadian REIT | 0.87% | ~4.8% | 20 | Active |
| CGR | iShares Global Real Estate | 0.43% | ~3.2% | 300+ | Global |
VRE — Best Overall
- MER: 0.38% (lowest)
- Holdings: 17 Canadian REITs
- Top holdings: Canadian Apartment Properties, RioCan, Granite, Choice Properties, CT REIT
- Best for: Cost-conscious investors who want broad Canadian REIT exposure
VRE tracks the FTSE Canada All Cap Real Estate Capped 25% Index. Its 0.38% MER is the lowest among Canadian REIT ETFs, making it the default pick for buy-and-hold investors.
XRE — Most Popular
- MER: 0.61%
- Holdings: 18 Canadian REITs
- Top holdings: Canadian Apartment Properties, RioCan, Granite, Choice Properties
- Best for: Investors who want the most liquid and widely traded option
XRE is the oldest and most popular Canadian REIT ETF. It tracks the S&P/TSX Capped REIT Index. The higher MER compared to VRE is its only real disadvantage.
ZRE — Equal Weight
- MER: 0.61%
- Holdings: 23 Canadian REITs
- Top holdings: Equally split across all 23 REITs
- Best for: Investors who want less concentration in top REITs
Most REIT ETFs are market-cap weighted, meaning large REITs like CAPREIT and RioCan dominate. ZRE gives equal weight to all 23 holdings, giving you more exposure to smaller REITs and a slightly higher yield.
Comparison: VRE vs XRE vs ZRE
| Feature | VRE | XRE | ZRE |
|---|---|---|---|
| MER | 0.38% | 0.61% | 0.61% |
| Holdings | 17 | 18 | 23 |
| Weighting | Market-cap | Market-cap (capped) | Equal weight |
| Yield | ~4.0% | ~4.2% | ~4.5% |
| Concentration risk | Higher (top-heavy) | Medium (capped at 25%) | Lowest |
| Best for | Lowest cost | Liquidity | Diversification |
For most investors: VRE wins on cost. ZRE wins on diversification. XRE is the safe middle ground.
Sector Breakdown (Typical Canadian REIT ETF)
| Sector | Approximate Weight |
|---|---|
| Retail | 30–35% |
| Residential | 20–25% |
| Industrial | 15–20% |
| Diversified | 10–15% |
| Office | 5–10% |
| Healthcare | 3–5% |
Canadian REIT ETFs are heavy on retail and residential. To diversify further, consider adding US or global REIT ETFs.
US and Global REIT ETFs (CAD-Listed)
| ETF | Name | MER | Yield | Focus |
|---|---|---|---|---|
| CGR | iShares Global Real Estate | 0.43% | ~3.2% | Global (40+ countries) |
| ZGI | BMO Global Infrastructure | 0.55% | ~3.0% | Infrastructure + real estate |
| VNQ | Vanguard US Real Estate (USD) | 0.13% | ~3.5% | US REITs only |
| VNQI | Vanguard Global ex-US RE (USD) | 0.12% | ~3.8% | Non-US REITs |
US-listed VNQ and VNQI have much lower MERs but require USD purchases and carry foreign withholding tax implications. They also fit into the same account-location questions covered in best account type for US stocks and ETFs in Canada.
REIT ETF vs Individual REITs
| Factor | REIT ETF | Individual REITs |
|---|---|---|
| Diversification | 15–25 REITs | You pick each one |
| Research needed | None | Significant |
| Rebalancing | Automatic | Manual |
| Concentration risk | Low | High (if few holdings) |
| Yield | Moderate (blended) | Higher possible |
| MER | 0.38–0.87% | $0 (no MER) |
| Sector control | Limited | Full control |
Build your own if you want to avoid office REITs or overweight industrial. Use an ETF if you want simplicity and broad exposure.
Where to Hold REIT ETFs
| Account | Recommendation |
|---|---|
| TFSA | Best choice — distributions are tax-free |
| RRSP | Good choice — distributions are tax-deferred |
| Non-registered | Acceptable but requires annual T3 tracking |
If you are still deciding between those account types at a higher level, see TFSA vs RRSP for beginners.
REIT distributions include return of capital, which reduces your adjusted cost base. This creates annual tax complexity in non-registered accounts that you avoid entirely in a TFSA or RRSP.
How to Buy a REIT ETF
- Open a brokerage account
- Search for the ticker (VRE, XRE, or ZRE)
- Place a market or limit order
- Receive monthly distributions to your account
- Reinvest distributions or let them accumulate as cash
For the general brokerage workflow, follow how to buy ETFs in Canada.
Portfolio Allocation
A typical allocation to REIT ETFs:
| Portfolio Size | Suggested REIT Allocation |
|---|---|
| Under $25,000 | Skip — all-in-one ETFs already include real estate |
| $25,000–$100,000 | 5–10% in VRE or ZRE |
| $100,000+ | 5–15% depending on income needs |
| Already own rental property | 0–5% — you already have real estate exposure |
Note: All-in-one ETFs like XEQT and VGRO include some real estate exposure through their broad market holdings. Adding a REIT ETF on top overweights real estate in your portfolio — only do this intentionally.
That broader allocation decision is easiest to make with asset allocation by age.
If you are adding REITs mainly for cash flow in retirement, compare them with best ETFs for retirement income in Canada.