REITs vs. REIT ETFs: How They Compare

This piece is an extensive explanation on the current state of REITs and related ETFs, in 2022.

Real estate investment trusts (REITs) are companies that own and operate real estate to produce and generate income. Investors can purchase shares in REITs, which represent ownership of an individual real estate company, just like regular stocks. The individual performance of REITs can vary widely. Many REITs are traded on major stock exchanges, but there are also a number of private and non-publicly traded REITs.

REIT exchange traded funds (ETFs), on the other hand, invest their assets primarily in equity REIT securities and other derivatives. They often have low expense ratios and passively track indexes for the larger real estate market. These REIT indexes include a number of different types of REITs as components.

Credit: Investopia