REIT ETFs

Hey there! Yes, I meant VRE. Apologies for the typo!

I can have a look at the REITs inside of IDR. But, I'm not an expert by any stretch of the imagination when it comes to U.S. real estate.

However, I already like the REIT more as it is heavily focused on industrial and residential REITs. It actually claims to only have around 20% exposure to Retail/Office, whereas an ETF like VRE is just under 40%.

In terms of performance, IDR has been the better choice, however all of them have underperformed the broader market. I've attached an image to give you a little better picture. IDR's outperformance is very likely due to its lower retail/office exposure.

Hey Dan,

Thanks for the response.

When you say VDR in your response do you mean VRE? I can't seem to find the VDR ETF.

Would you be able to analyze these REITs please? I've heard that IDR is actually a good ETF as their dividend yield has held steady over the last 6+ years with 6%+ yields.

Thanks.

It's pretty tough to compete with Vanguard products! Primarily due to the fees. VRE is around half the overall fees of XRE and IDR.

VDR is more heavily weighted, with its top 10 holdings make up over 80% of total holdings compared to 71% of XRE.

To be honest, I'm more of a fan of VDR, primarily due to the fact that it has a heavy industrial/residential exposure with big allocations to Canadian Apartment REIT, First Service and Granite.

Whereas XRE has a little more exposure to office and commercial companies like Riocan and Allied Properties.

Keep in mind though, the difference is almost negligible. Your talking a few percentage points.

Both of these ETFs are best in class in terms of Canadian REITs.

In terms of IDR, it definitely has some U.S. REITs and some U.S. specialty REITs. This would require a lot more analysis, as I just don't know the U.S. real estate market off the top of my head, where these REITs are located, portfolios etc.