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Best UK REIT ETF – Compare Top ETFs 2021

REIT ETFs are a highly accessible and cheap way to gain exposure to real estate investments, enhance portfolio diversification and dampen risk. Read this guide to discover all the essentials of REIT ETFs and the best UK REIT ETF opportunities in the UK and around the world for 2021.

Best UK REIT ETF 2021 List

Looking for the best UK REIT ETF? Here are our top 10 recommended REIT ETFs, you can see a more in-depth review of each further down:

  1. iShares UK Property UCITS ETF (IUKP) – Best for UK REIT ETF – Invest Now
  2. iShares Global REIT ETF (REET) – Best for US and global property exposure – Invest Now
  3. iShares US Real Estate REIT ETF (IYR) – Best for US exposure – Invest Now
  4. iShares Core US REIT ETF (USRT) – Cheapest REIT ETF for US
  5. Xtrackers FTSE EPRA/NAREIT Developed Europe ex UK Real Estate UCITS ETF (XREA) – Best Europe ex UK REIT ETF with reinvested dividends
  6. Vanguard Real Estate ETF (VNQ) – Best large US REIT ETF
  7. iShares MSCI Target UK Real Estate ETF (UKRE) – Best UK REIT that includes government bond exposure
  8. iShares Asia Property Yield UCITS ETF (IDAR) – Best Asia REIT ETF
  9. HSBC FTSE EPRA Developed UCITS ETF (HPRD) – Best small Global REIT ETF
  10. iShares European Property Yield UCITS ETF (IPRP) – Best Europe REIT ETF

Best UK REIT ETFs Reviewed

We list below and compare the top 10 REIT ETFs available to UK investors in 2021. Our picks covers all geographies with particular emphasis on the UK, US and Europe, but also including Asia-Pacific. Our best UK REIT ETF fund selections cater to the needs of  investors on the hunt for a reliable income stream, but with an eye to capital growth that accrues from the value of real estate growing over time.

Our selection includes a preponderance of iShares products. iShares is the ETF brand of fund management giant BlackRock, the larest fund mangement firm in the world with $8.67 trillion in assets under management, so prospective investors considering investing in iShares funds are in very safe hands.

Dividend yield data source: Bloomberg

1. iShares UK Property UCITS ETF (IUKP)

This single-country ETF focuses on growth from diversified exposure to UK property market, with 27% of the fund invested in diversified REITs, 10.6% in office space, 9.7% in residential, 7.6% in real estate holding and development and 5.7% in retail premises. In calendar year 2020 the iShares UK Property UCITS ETF on average lent out securities amounting to 11.7% of its assets under management. ETFs can lend out securities to enhance returns, although it should be said that in this case it didn’t stop the fund clocking in with a negative tracking difference, meaning it underperformed its benchmark. The fund is eligible for ISAs and SIPPS.

The fund tracks the performance of the FTSE EPRA/NAREIT United Kingdom Index composed of REITs and property companies by investing in their shares. Over the past 12 months the ETF has returned 21% and year to date returned 8.4%. Its expense ratio is 0.40% and comes with a tracking difference of -0.11%. IUKP has a UCITS risk factor of 5, where 1 is lowest and 7 is highest risk. The fund has a good MSCI ESG Quality Score (environmental, social and governance) of 6.8, with 10 being the highest score available. It distributes dividends to fund holders.

Dividend Yield 1.86%

The top five holdings:

  • Segro REIT 19.91%
  • Land Securities  REIT  8.63%
  • British Land REIT  8.13%
  • Unite Group  5.86%
  • Derwent London REIT  5.50%

IUKP ETF price chart

 67% of retail investor accounts lose money when trading CFDs with this provider.

2. iShares Global REIT ETF (REET)

The REEF ETF provides broad exposure to REITs globally that invest in real estate directly and are listed on stock markets. As with many real estate investment trust ETFs, REEF focuses on securing an income stream for its investors, but in this case from both developed and emerging market economies – its largest regional weightings here in developed economies. With an expense ratio of 0.14% it is among the cheapest REIT ETF in our selection. The MSCI ESG Quality score is low at 3.2.

REET tracks the performance of the FTSE EPRA/NAREIT Global REIT Net Total Return Index composed of REITs and property companies by investing in their shares. Over the past 12 months the ETF has returned 36% and year to date returned 12.6%. Its expense ratio is 0.14% and comes with a tracking difference of 1.17%. Although badge as a global ETF, REET invests 63% in the US. Its other regions are overwhelmingly in the developed economies, with next largest country weightings in Japan (11.4%), UK (5.6%), Australia (4.6%), Singapore (3.4%), Canada (3.0) and others (10.4%). This ETF distributes dividends.

Dividend Yield 3.49%

The top five holdings:

  • Prologis REIT  5.76%
  • Digital Realty Trust REIT  3.05%
  • Public Storage REIT 2.73%
  • Simon Property Group REIT INC 2.14%
  • Welltower  2.11%

REET ETF price chart

 67% of retail investor accounts lose money when trading CFDs with this provider.

3. iShares US Real Estate REIT ETF (IYR)

Provides targeted access to US real estate stocks and REITS. The fund is a holding in the eToro Sector ETF CopyPortfolio. Excellent fund for gain exposure to the US property market, retiring 31% over the 12. months to 31 March 2021. It also has a positive tracking difference, meaning is slightly outperformed the index it tracks. The fund has high exposure to specialised REITS at 38% and also includes a wedge of residential, industrial and healthcare real estate holdings, at 14.4%, 10.3% and 8.8%, respectively.

IYR tracks the performance of the Dow Jones U.S. Real Estate Total Return Index. The ETF has physical exposure to the underlying assets of the index. The ETF is 98% invested in the US, with 92% invested in real estate and the balance in the industrials. and financials sectors. Over the past 12 months it has returned 31% and year to date returned 14.4%. Its expense ratio is 0.42% and tracking difference is 0.13%. This ETF distribute dividends to give investors a stream of income.

Dividend Yield 1.81%

Top 5 holdings:

  • American Tower REIT 8.71%
  • Prologis  6.51%
  • Crown Castle international REIT 6.00%
  • Equinix REIT 4.75%
  • Digital Realty Trust REIT 3.46%

IYR ETF price chart

 67% of retail investor accounts lose money when trading CFDs with this provider.

4. iShares Core US REIT ETF (USRT)

Investment objective is to maintain a core long-term exposure to US real estate assets through investment in REITs and real estate stocks. The fund targets both dividend income and growth. USRT also has the lowest expense ratio of our election of REIT ETFs at 0.08%. It has net assets of $1.97 billion spread across 150 holdings, making it among the more diversified of the US-focused REIT ETFs. Residential property has a relatively high weighting at 18%.

Tracks the performance of the FTSE NAREIT Equity REITs Total Return Index. The ETF provides physical exposure to the underlying assets of the index. The fund is 98% invested in the US, with net assets of $1.97 billion. Over the past 12 months it has returned 36% and year to date returned 15.3%. Its expense ratio is 0.08% and tracking difference is -0.03%. This ETF distributes dividends.

Dividend Yield 2.41%

Top 5 holdings:

  • Prologis REIT 8.01%
  • Equinix REIT 6.85%
  • Digital Realty Trust REIT 4.25%
  • Public Storage 3.80%
  • Simon Property Group REIT 2.98%

usrt etf share price

 67% of retail investor accounts lose money when trading CFDs with this provider.

5. Xtrackers FTSE EPRA/NAREIT Developed Europe ex UK Real Estate UCITS ETF (XREA)

Net asset value is £54 million, so this is a small fund and around 70% of its assets are denominated in euros, bringing an element of forex hedging to predominantly sterling-denominated portfolios. The best European fund provides diverse exposure to European stocks in the real estate sector (excluding UK) by investing in eligible listed real estate companies and REITs.

XREA tracks the performance of the FTSE EPRA/NAREIT Developed Europe Ex UK Capped Net Return Index. The ETF provides physical exposure to the underlying assets of the index. Over the past 12 months it has returned 26.5% and year to date returned 2.5%. Its expense ratio is 0.33% and tracking difference is 0.31%. Largest country weightings are Germany (29%), Sweden (19%), France (15%) and Switzerland (9%). Instead of distributing them to investors, this ETF reinvests dividends. Trades on the Deutsche Borse.

Dividend Yield 3.52%

Top 5 holdings:

  • Vonovia  SE10.14%
  • Deutsche Wohnen 9.09%
  • Leg Immobilien N AG5.51%
  • WFD Unibail Rodamco Stapled Units 5.26%
  • Aroundtown Property Holdings SA 4.48%

XREA ETF price chart

 67% of retail investor accounts lose money when trading CFDs with this provider.

6. Vanguard Real Estate ETF (VNQ)

This ETF invests in listed property companies and REITs in the US that buy office buildings, hotels, and other real estate. It offers high potential for investment income while allowing for an element of growth. As you might expect, given the popularity of fund management group Vanguard, this is large fund, weighing in at $67 billion and has 174 holdings, although the top 10 holdings account for 44% of the fund. Specialised REITs account for 37% of the funds, with the next largest weighting in residential at 13.9%.

VNQ tracks the performance of the MSCI US Investable Market Real Estate 25/50 Transition GTR Index. The ETF provides physical exposure to the underlying assets of the index.The fund is 98% invested in the US, with net assets of $67.8 billion. Over the past 12 months it has returned 31% and year to date returned 14%. Its expense ratio is 0.12% and tracking difference is -0.22%. This ETF distributes dividends to provide an income stream for its investors.

Dividend Yield 2.15%

Top 5 holdings:

  • Vanguard Real Estate II Index Fund 11.9
  • American Tower REIT 8.16
  • Prologis REIT 6.10%
  • Crown Castle International REIT 5.63%
  • Equinix REIT 5.18%

VNQ ETF price chart

 67% of retail investor accounts lose money when trading CFDs with this provider.

7. iShares MSCI Target UK Real Estate ETF (UKRE)

This fund has net assets of £73 million and invests entirely in the UK with targeted exposure to liquid real estate and government bonds. UKRE is eligible for inclusion in ISAs and SIPPs and for ethical investors it has a MSCi ESG Quality Score of 6.29 (10 is highest). Unlike other UK REIT ETF funds, UKRE’s inclusion of UK gilts introduces a diversifying factor to the ETF. Average on-loan securities as a percentage of the assets under management in 2020 was 2.95%. The ETF trades on the London Stock Exchange.

Tracks the performance of the MSCI UK IMI Liquid Real Estate Net Total Return Index. The ETF provides physical exposure to the underlying assets of the index. The company is 100% invested in the UK and in terms of asset class is 64.3% invested in REITs and 34.9% invested in UK government bonds. Over the past 12 months it has returned 12.4% and year to date returned 4.1%. Its expense ratio is 0.40% and tracking difference is -0.30%. This ETF distributes dividends to provide an income stream for its investors.

Dividend Yield 1.03%

  • UK I/L Gilt  29.30%
  • Segro REIT 12.78%
  • Primary Health Properties REIT 6.25%
  • United Kingdom (Government of) 5.62%
  • Tritax Big Box REIT 5.56%

UKRE ETF price chart

 67% of retail investor accounts lose money when trading CFDs with this provider.

8. iShares Asia Property Yield UCITS ETF (IDAR)

Provides exposure to developed Asian real estate companies and REITs with a focus on income, but with the proviso that the holdings must have a one-year forecast dividend yield of 2% or greater. This medium-sized fund has net assets of $535 million, with 40% invested in the Japanese market, 24% in Hong Kong and around  15% each in Australia and Singapore. The average on-loan figure is high at 20% and the fund is expensive for a REIT ETF on an expense ratio of 0.59%, but this is accounted for in the costs associated with investing in countries requiring some currency risk hedging.

IDAR tracks the performance of the FTSE EPRA/NAREIT Developed Asia Dividend+ Net Total Return. The ETF provides physical exposure to the underlying assets of the index. Over the past 12 months it has returned 28% and year to date returned 7.8%. Its expense ratio is 0.59% and tracking difference is -0.67%. This ETF distributes dividends to provide an income stream for its investors.

Dividend Yield 2.81%

  • Mitsui Fudosan 5.57%
  • Link Real Estate Investment Trust %
  • Sun Hung Kai Properties 5.25%
  • CK Asset Holdings 3.50%
  • Scentre Group 3.30%

IDAR ETF price chart

 67% of retail investor accounts lose money when trading CFDs with this provider.

9. HSBC FTSE EPRA Developed UCITS ETF (HPRD)

This REIT ETF invests globally, with half in the US. Fund size is small at £137 million and dividends are distributed quarterly. It has a UCITS Risk Indicator reading of 5 (7 is highest). The fund can invest up to 10% of its funds in other funds, including HSBC funds and during exceptional market conditions is able to invest up to 35% of asset value in the securities of a single issuer. Both of those objectives criteria provide flexibility to make this fund an all-weather contender.

Tracks the performance of the FTSE EPRA/NAREIT Developed Net Total Return Index. The ETF provides physical exposure to the underlying assets of the index. Assets under management stand at €159 million. Over the past 12 months it has returned 34.4% and year to date returned 11.2%. The largest country weightings are US (51%), Japan (11.4%), Germany (5.5%), Hong Kong (5.1%) and UK (4.9%). Its expense ratio is 0.40% and tracking difference is 0.12%. This ETF distributes dividends to provide an income stream for its investors.

Dividend Yield 2.38%

Top 5 holdings:

  • Prologis REIT 4.67%
  • Vonovia 2.67%
  • Digital Realty Trust REIT 2.49%
  • Public Storage REIT 2.23%
  • Simon Property Group REIT 1.74%

HPRD ETF price chart

 67% of retail investor accounts lose money when trading CFDs with this provider.

10. iShares European Property Yield UCITS ETF (IPRP)

Another Europe ex UK REIT ETF pick, the IPRP can only invest in REITs that have a dividend yield of 2% or greater. The shares are denominated in euros and carry a UCITS risk score of 6. The fund is relatively concentrated with just 65 holdings. Net asset value is €1.76 billion, making this medium sized REIT ETF with a bias towards Germany, where 43% of assets are domiciled. The fund is eligible for ISAs and SIPPS.

Tracks the performance of the FTSE EPRA/NAREIT Developed Europe Ex UK Dividend+ Net of Tax Total Return Index. The ETF provides physical exposure to the underlying assets of the index, with assets under management of $1.68 billion. Over the past 12 months it has returned 23.5% and year to date returned 2.7%. The largest European country weightings are Germany (43.4%), France (15.9%), Sweden (13.2%), Switzerland (8.7%) and Belgium (8.4%). Its expense ratio is 0.40% and tracking difference is 0.30%. This ETF distributes dividends to provide an income stream for its investors.

Dividend Yield 2.71%

  • Vonovia 21.02%
  • Deutsche Wohnen 9.41%
  • Leg Immobilien 5.70%
  • WFD Unibail Rodamco Stapled Units 5.44%
  • Gecina REIT SA 4.06%

IPRP ETF price chart

 67% of retail investor accounts lose money when trading CFDs with this provider.

What is a REIT ETF?

Real estate investment trusts (REIT) are companies that invest in property of all types. They will mostly lease buildings and collect the rental income. By law REITs are required to pay out 90% of earnings (profits) as income (dividends) to its shareholders. Also, at least 75% of gross assets must relate to property rental business.

REITs are highly liquid which makes them a good fit for retail investors. They are also required to make a profit, which makes them particularly safe investments and highly appealing for risk-averse investors.

REITs can be diversified across the property asset class. When you add to that the fact that an exchange traded fund (ETF) can invest in as many REITs as it wishes, then you can see how REIT ETFs further magnify both the range and number of property investment returns an investor can access.

How ETFs work

As with all ETFs, buyers of the shares must pay a charge known as the expense ratio. This is past on by the broker as a deduction from the returns generated by the ETF. Exchange traded funds are popular partly because of their low charges when compared with mutual funds.

ETFs are what is known as a passive investment instrument because they seek to replicate the value of an underlying index, therefore their costs will tend to be lower than actively managed funds that employ a manager to, for example, pick stocks to invest in.

Unlike mutual funds, ETFs trade on exchanges in the same way as individual stocks, with their prices changing continually throughout the trading day, unlike mutual funds which are priced once, usually at the end of the trading day.

What is tracking difference and tracking error?

Concretely, when considering the best UK REIT ETF to buy an investor must take into account factors such as the income stream, weight of the various types of property held, the region it bases its investment in, in addition to performance, tracking difference and fees.

Tracking difference is a measure of the extent to which an ETF outperforms or underperforms its benchmark. Tracking error is often confused with the former although it is related. Tracking error is a measure of the variability of the tracking difference – in other words the amount it changes for various data points. In this guide we provide the tracking difference data.

Are UK REIT ETFs a Good Investment?

Pros of REITs

  • Tax advantages
    REITs pay no corporation tax.
  • High dividend yields
    Better than average dividend yield because 90% of profit has to be paid in cinema to shareholders.
  • Capital growth potential
    Property values increase over time. Add to that the dividends, and the total return on REITs can often be market-beating
  • Access to hard to reach real estate sectors
    Can access areas such as commercial property in addition to retail – for instance hot areas such as warehousing for e-commerce
  • Great for portfolio diversification
    Property is relatively uncorrelated to asset classes such as equities, so acts as a diversifying element in equity portfolios. Property is a defensive asset class compared to stocks, meaning if stocks fall, property assets are likely to hold its value.
  • Easy to buy and sell
    Buying and selling real estate such as residential property takes a lot of time and effort. That means such transactions are relatively illiquid. However, REITs are the opposite because moving in and out of the investment is simply a matter of selling shares in the REIT.

Cons of REITS

  • Property Income Distribution (PID)
    In return for not having to pay corporation tax UK REITs’ status means they pay out a special dividend called a property income distribution (PID). The shareholders have to pay tax on this and it is not included in the £5,000 tax-free allowance for dividend payments. The tax is paid by the shareholder because HMRC makes the REIT withhold the 20% basic income tax rate on PIDs. PIDs were introduced in 2007 when the UK REITs regime was established. So for a £100 pay out, £20 is withheld and paid to HM Revenue & Customs.
  • Interest rate risk
    REITs can be highly sensitive to interest rate fluctuations. Interest rates have been low for some time and this benefits REITs. However, if rates were to start rising it would be bad for REIT stock prices because when yields (interest rates) rise prices fall – there is an inverse relationship between yield and prices.
  • Not good for short-term trading
    REITs are best considered as long-term investments.
  • Concentration risk
    Be sure to do your own due diligence on the REITs you will be getting exposure to through the REIT ETF because some will have more concentrated portfolios than others, meaning they may have a high weighting in certain real estate sectors and companies, thereby making them less diversified and riskier.

Best UK REIT ETF UK Investment Platforms 2021

Below we provide our top two best stock brokers for investing in REIT ETFs, with an eye to the products available, the costs incurred by investors, ease of use and extras such as the presence of innovative features to help you build a profitable investment portfolio.

1. eToro – Buy the Best UK REIT ETFs with 0% Commission

eToro is an FCA-regulated brokerage platform that now has 17 million clients active on its platform. The broker has made a name for itself with its ease of use and low prices – ETFs and stocks can be bought with 0% commission. Crucially, all of the best UK REIT ETFs we have cited in this review can be purchased at eToro. In total, when it comes to trading ETFs on eToro there are  249 ETFs listed to choose from.

Although the broker allows you to invest in REIT ETFs commission-free, there is a small effective charge included in the spread between the buy and buy price. This means that the only cost that needs to be taken into account is the expense ratio charged by the ETF provider – this is handled by the broker and the education is reflected in your eToro account balance.

etfs on etoro

Another attractive feature of eToro is that the minimum ETF investment is just $50. This means that you can buy REIT ETFs using small amounts of your funds. The advantage of this is that you can take a ‘little and often’ approach to your investing, in which you invest a small amount on a regular basis. As well as making investing more affordable, it also smooths out the ups and downs of the returns over the period of the investment.

eToro CopyPortfolios are essentially thematic bespoke index funds created by the platform and its partners. The Sector ETF CopyPortfolio invests in a number of the major sectors of the stock market by holding a number of sector-focused ETFs. Among those it includes the iShares US Real Estate  ETF (IYR), which we have selected as our best REIT for the US.

Setoro Sector ETF copy portfolio

It is also worth searching for traders on the platform that have a bias towards real estate in their portfolio and then making use of the Copy Trading feature to automatically copy their trades. Under ‘Discover’ in the vertical grey navigation bar on the left, click on ‘Copy People’. Then filter by ETF and perhaps someone from your home country, say the UK.

From the list of traders, browse their portfolios to see which has high exposure to REIT ETFs (and of course good overall portfolio returns). If you find a trader you like the look of, simply clock the blue ‘Copy’ button to start copying their trades. You can also tweak which trades you elect to copy to further refine your asset allocation.

If you are interested in other asset classes for your portfolio such as buying shares, you will find that eToro lists more than 2,400 stocks from 17 exchanges, in addition to index funds and ETFs covering all major asset classes, such as commodities and currencies, as well as a growing number of cryptocurrency listings.

In addition to the usual debit and credit card deposits methods and a variety of digital payment wallet services, you can also use PayPal to make funding your account super convenient and with no fee.

Pros:

  • Super user-friendly online trading platform
  • Buy stocks without paying any commission or share dealing charges
  • Trade CFDs in the form of stocks, indices, commodities, forex, and more
  • 2,400+ stocks listed on the UK and international markets
  • 150+ ETFs
  • Deposit funds with a debit/credit card, e-wallet, or UK bank account
  • Ability to copy the trades of other users
  • FCA and FSCS protections

Cons:

  • Not suitable for advanced traders that like to perform technical analysis
  • No ISAs or SIPPs

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Capital.com – Best CFD broker for buying UK REIT ETFs

Capital.com commodity broker

Our second choice for best broker for the UK REIT ETF market is CFD broker Capital.com. Like eToro it offers 0% commission trading but its markets are created using a derivative instrument called CFDs, so with markets on this platform you will not be buying the underlying asset directly.

Contracts for differences (CFDs) are contracts drawn up between two parties that contain an agreement to pay the difference between the buying and selling price to the owner of the contract upon closing, with returns dependent on whether the owner has taken a buy or sell position; they are derivatives that enable an investor to take a position on a financial asset without having to own the underlying asset.

Capital.com Trading PlatformBecause of its structure, this popular CFD trading platform doesn’t allow you to invest in REIT ETFs directly as you can with eToro. Instead, you use a CFD derivative to gain exposure to the price of the ETF. It also has the benefit of allowing you to take short positions, where an investor benefits if the price of the underlying asset falls.

CFDs come with an overnight fee charged by the broker for keeping positions open outside of trading hours. This is akin to an interest rate charge by CFD brokers because the holder of the CFD instrument is effectively borrowing from the broker. With this in mind, the longer a position is held, the more such charges will build up.

Among the benefits of trading REIT ETFs UK at Capial.com is the option of being able to go long or short on your chosen REIT ETF. For example, if you thought that a particular UK REIT ETF was overpriced, you could place a sell order.

Capital.com allows you to trade the best UK REIT ETFs UK with leverage. As per UK regulations on margin trading, this allows you to apply leverage of up to 1:5. As such, by putting up £50, you can trade with up to £250. Additionally, Capital.com allows you to trade REIT ETFs without paying any commission.

Pros:

  • Educational app for new traders
  • Commission-free trading
  • Tight spreads
  • Leverage offered
  • AI assistant identifies your weak points
  • Excellent charting and analysis interface
  • £20 minimum deposit

Cons:

  • Cannot build custom trading strategies
  • CFDs only

71.2% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.

How to Buy the Best UK REIT ETFs

Step 1: Open an Account and Upload ID

You will first need to visit the eToro website or download the mobile app (available for iOS and Android devices) to open an account. In this walkthrough we are referring to the website accessed on desktop.

eToro sign up

This is standard practice for all FCA-regulated brokers and simply requires some personal information from you.

Step 2: Confirm Identity

Upload a form of government-issued photo ID, either a copy of your passport or driver’s licence. Verify home address by uploading a copy of a bank account statement or utility bill.

These documents can be uploaded at a later date if you wish, but it means your account willl not be fully verified, which limits access tot he full functionality and features that eToro has to offer on its platform. For example unverified accounts cannot make  make withdrawals or deposits of more than $2,250.

Step 3: Make a Deposit

Before you can invest in a REIT ETF at eToro, users will need to fund their account by making a deposit.

Depending on region, available payment methods are:

  • Debit/Credit Card (Visa, MasterCard, Maestro)
  • PayPal
  • Skrill
  • Neteller
  • UK Bank Transfer

Step 4: Search for UK REIT ETF 

All of the best UK REIT ETFs discussed on this page are available on eToro. As such, if you already know which ETF interests you – search for it.  In our example, we are searching for the iShares UK Property UCITS ETF (IUKP).

After completing the account set-up, you will by default be taken to the watchlist view. Above is a search bar. Enter the ticker for the UK REIT ETF: IUKP

search for IUKP UK REIT ETF on etoro

Alternatively if you didn’t know what the ticker was you could search by the full name of the instrument or clicked on ‘Trade Markets’ in the navigation menu followed by ‘ETFs’. This will then show you each and every ETFs hosted on the platform.

Step 5: Place a UK REIT ETF Order

Now you can place an order for the IUKP REIT ETF. As you can see from the example order ticket shown below, you simply decide the amount you want to invest or the size of the unit you wish to buy.

The screenshot below is from a live account but you can start your investment journey on eToro by using the demo account to practice on before committing any funds.

The minimum investment amount is 50 US dollars – so you can enter any amount as long as it is above that figure and you have the funds available in your account.

order ticket to buy IUKP UK REIT ETF on Toro

Finally, click on the ‘Open Trade’ button to complete your commission-free REIT ETF investment!

eToro – Buy the Best UK REIT ETF with 0% Commission

In summary, if you want to gain exposure to REITs – the best option on the table is to go with an ETF.  Not only can you invest without worrying about liquidity issues such as the company being able to sell properties to raise cash for example, the best UK REIT ETFs are keenly priced when compared to buying REITs directly or investment companies.

For example, of the 10 REIT ETFs selected above the iShares Core US REIT ETF (USRT) has an annual expense ratio of just 0.08%. As we have seen, REIT ETFs come in different flavours which means there is something available for all types of property investor, depending on the sorts of property to be invested in, the regions to weight and considerations such as whether to opt for physical or synthetic replication. These levels of flexibility combined with low costs, provide retail investors with an excellent route into real estate. The extent of the diversity available also reduces the risks being taken by investors.

Irrespective of which REIT ETF you select, be sure that you choose a top-rated broker that best suits your needs. eToro is a solid platform that offers what in our view are best-in-class REIT ETFs. Investors also have the peace of mind that comes with trading and investing on a brokerage platform such as eToro broker , which is registered with the UK Financial Conduct Authority and funds protected from platform failure up to value of £85,000 by the Financial Services Compensation Scheme.

Finally, by allowing investors to buy and sell the best UK REIT ETF without paying dealing commission on an easy-to-use and innovative social trading platform, eToro ranks highly. And with a minimum investment of just $50, eToro is great for investors of all means.

67% of retail investor accounts lose money when trading CFDs with this provider.

FAQs

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How much do UK REIT ETFs cost in the UK?

About Gary McFarlane PRO INVESTOR

Gary was the production editor for 15 years at highly regarded UK investment magazine Money Observer. He covered subjects as diverse as social trading and fixed income exchange traded funds. Gary initiated coverage of bitcoin and cryptocurrencies at Money Observer and for three years to July 2020 was the cryptocurrency analyst at the UK’s No. 2 investment platform Interactive Investor. In that role he provided expert commentary to a diverse number of newspapers, and other media outlets, including the Daily Telegraph, Evening Standard and the Sun. Gary has also written widely on cryptocurrencies for various industry publications, such as Coin Desk and The FinTech Times, City AM, Ethereum World News, and InsideBitcoins. Gary is the winner of Cryptocurrency Writer of the Year in the 2018 ADVFN International Awards.

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