Invest in a basket of Canadian real estate with a single ETF. Compare the top REIT ETFs on the TSX by fees, yield, and exposure.
Individual Canadian REITs give you concentrated exposure to one property type or operator. REIT ETFs hold dozens of REITs across multiple sectors — residential, industrial, retail, office, healthcare — providing instant diversification at low cost. For most investors, a REIT ETF is a better starting point than stock-picking individual REITs.
| ETF | Ticker | MER | Distribution Yield | Holdings |
|---|---|---|---|---|
| iShares S&P/TSX Capped REIT ETF | XRE | 0.61% | ~4.5% | 18 REITs |
| BMO Equal Weight REITs ETF | ZRE | 0.61% | ~4.8% | 25 REITs |
| CI Canadian REIT ETF | RIT | 0.87% | ~5.0% | 25+ REITs |
| Vanguard FTSE Canadian Capped REIT ETF | VRE | 0.38% | ~4.2% | 20 REITs |
XRE is the most established and liquid Canadian REIT ETF, tracking the S&P/TSX Capped REIT Index. Its cap-weighted methodology means the largest REITs (like Canadian Apartment Properties and Choice Properties) get the biggest allocations. This concentrates exposure in the largest names, which tend to be more stable.
Top holdings typically include: Canadian Apartment Properties REIT, Choice Properties REIT, Granite REIT, Allied Properties REIT, SmartCentres REIT.
ZRE takes an equal-weight approach, giving each REIT in the fund roughly the same allocation. This means smaller REITs get more representation than in cap-weighted funds — potentially improving diversification and capturing more upside from smaller, faster-growing names. ZRE also has a wider holdings universe at 25 REITs vs. XRE's 18.
At 0.38% MER, VRE is the most cost-effective Canadian REIT ETF from a major provider. Vanguard's famously low fees apply here — over a 20-year holding period, the 0.23% fee difference vs. XRE and ZRE compounds meaningfully. VRE tracks the FTSE Canada All Cap Real Estate Capped 25% Index.
| XRE | ZRE | VRE | |
|---|---|---|---|
| MER | 0.61% | 0.61% | 0.38% |
| Weighting | Market cap | Equal weight | Market cap |
| Holdings | 18 | 25 | 20 |
| Liquidity | Highest | Good | Good |
| Best for | Largest-cap focus | Diversification | Cost-conscious |
Canadians can also access US REIT ETFs like Vanguard Real Estate ETF (VNQ) and iShares US Real Estate ETF (IYR) through USD accounts at brokerages. However, note that US REIT distributions are subject to 15% US withholding tax in TFSAs (no treaty exemption in TFSAs). In an RRSP, the treaty exemption applies and US withholding is eliminated.
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Get KOHO Free — Use Code 45ET55JSYAFor most Canadians wanting real estate exposure, a REIT ETF in a TFSA is the optimal strategy. VRE wins on cost, ZRE wins on diversification, and XRE wins on liquidity and track record. Any of the three is a reasonable core holding for real estate exposure within a diversified Canadian portfolio.