A strong management team and sound investment process underpin iShares Core US REIT ETF's Morningstar Medalist Rating of Bronze. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy's effective investment approach earns an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a considerable overweight position in yield exposure and has an overweight in liquidity exposure compared with category peers. High yield exposure is attributed to holding high dividend-paying or buyback stocks, and is suitable for income seekers outside of fixed-income. And a high liquidity exposure is rooted in stocks with higher trading volumes, lending managers more flexibility. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Prologis

Equinix

Welltower

Simon Property Group

Realty Income Corp

Public Storage

Digital Realty Trust

Extra Space Storage

Vici Properties

AvalonBay Communities

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. iShares Core US REIT ETF earns an Above Average Process Pillar rating. The most important driver of the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Impressive risk-adjusted performance also strengthens the process. This can be seen in the fund's 10-year alpha calculated relative to the category average, which suggests that the process was successful over that period. 

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the investment results of the FTSE NAREIT Equity REITs Index composed of U.S. real estate equities.  The fund generally will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index. The index measures the performance of U.S.-listed equity real estate investment trusts ("REITs"), excluding infrastructure REITs, mortgage REITs, and and timber REITs. 

 The portfolio is overweight in real estate by 2.6 percentage points in terms of assets compared with the category average, and its healthcare allocation is similar to the category. The sectors with low exposure compared to category peers are consumer cyclical and financial services; however, the allocations are similar to the category. The portfolio is composed of 136 holdings and its assets are more dispersed than peers in the category. In particular, 49.4% of the fund’s assets are concentrated in the top 10 fund holdings, compared to the category’s 59.9% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 8% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Above Average

Process

iShares’s equity team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are three managers listed on the fund: Paul Whitehead, Jennifer Hsui, Greg Savage. The team is well equipped, with an average of 18 years of portfolio management experience. Together, they manage a total of 257 strategies, with a Silver asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares Core U.S. REIT ETF

USRT tracks a market-cap-weighted index of US-listed REITs. It excludes mortgage, timber and infrastructure REITs.

The iShares Core U.S. REIT ETF has been the best-performing REIT ETF over the last three years. This period does not include the sharp sell off in 2020. USRT's exposure and diversification meant it performed poorly in 2020 compared to XLRE.

USRT: A Closer Look At This Top Performer

JPMorgan BetaBuilders MSCI US REIT ETF

Direxion Daily Real Estate Bull 3x Shares

Direxion Daily Real Estate Bear 3x Shares

Fidelity MSCI Real Estate ETF

First Trust S&P REIT Index Fund

iShares Cohen & Steers REIT ETF

iShares U.S. Real Estate ETF

Nuveen Real Estate Income Fund

Invesco KBW Premium Yield Equity REIT ETF

Neuberger Berman Real Estate Securities Income Fund Inc

US Diversified Real Estate ETF

Invesco Active US Real Estate

ALPS Active REIT ETF

ProShares Short Real Estate

Cohen And Steers Total Return Realty Fund

Cohen & Steers Reit And Preferred Income Fund Inc

Cohen & Steers Quality Income Realty Fund

SPDR Dow Jones REIT ETF

Schwab U.S. REIT ETF

Seven Hills Realty Trust

ProShares UltraShort Real Estate

Pacer Funds Trust-Pacer Benchmark Data & Infrastructure Real Estate Sector ETF

ProShares Ultra Real Estate

Vanguard Real Estate ETF

The yield on 10-year Treasury Inflation-Protected Securities TIPS fell significantly from ~2.5% to ~1.7% in the last two months of 2023. How does this affect real estate? As long-lived, fixed assets with inflation-protective characteristics, quality real estate can be viewed as an equivalent to TIPS plus a risk premium.

An Opportunity For REITs To Shine In 2024

VanEck Vectors BDC Income ETF

Schwab US Dividend Equity ETF

iShares 0-3 Month Treasury Bond ETF

Retirement planning is overwhelming, leading to inaction and a poor investment selection.

How To Build A Portfolio With Four ETFs

After lagging equities for the past two years, REITs offer an attractive investment opportunity in 2024. Peaking or falling yields have historically been a catalyst for strong REIT market outperformance.

2024 Listed REITs Outlook

Federal Reserve's decision to stop hiking rates could benefit Real Estate Investment Trusts. iShares Core U.S. REIT ETF is a recommended fund for investing in the REIT sector. USRT offers diversified exposure, low expense ratio, and steady yield but has sector concentration and underperformance risks.

USRT: A Good Time For REITs To Outperform

American Tower

Real Estate Select Sector SPDR Fund

Investing directly in real estate can be hard for many people and impossible for some. Fortunately, you can easily invest in real estate via real estate investment trusts (REITs).

You Don't Have to Pick a Winner In REITs. Here's Why.

iShares Mortgage Real Estate ETF

Investing directly in real estate properties requires a large amount of capital and many other resources that most average investors cannot access. But, for investors looking to gain exposure to the real estate market and the many benefits of real estate investing, REITs (real estate investment trusts) are the way to go.

3 REIT ETFs to Buy for Massive Long-Term Gains

The S&P 500 has massively outperformed REITs in recent years. But we expect this outperformance to soon reverse. I explain why I expect REITs to easily beat the S&P 500 going forward.

Why REITs Will Likely Pummel The S&P 500

Hoya Capital Housing ETF

Pacer Benchmark Industrial Real Estate SCTR ETF

iShares U.S. Home Construction ETF

Janus Henderson U.S. Real Estate ETF

VanEck Mortgage REIT Income ETF

Direxion Daily Homebuilders & Supplies Bull 3X Shares

Nuveen Short-Term REIT ETF

Invesco Dynamic Building & Construction ETF

iShares Global REIT ETF

iShares Residential Real Estate ETF

IQ US Real Estate Small Cap ETF

Invesco S&P 500 Equal Weight Real Estate ETF

Global X SuperDividend REIT ETF

SPDR S&P Homebuilders ETF

Alpine Global Premier Properties Fund

DoubleLine Commercial Real Estate ETF

First Trust Alerian Disruptive

iShares International Developed Real Estate ETF

CBRE Global Real Estate Income Fund

Invesco Real Assets ESG ETF

NETLease Corporate Real Estate ETF

SPDR Dow Jones Global Real Estate ETF

SPDR Dow Jones International Real Estate ETF

Vanguard Global ex-U.S. Real Estate ETF

iShares International Developed Property ETF

The history of construction spending since 1993 reveals that this data tends to weaken prior to recessions. For a recent dip in Residential Construction attributed to the rise in mortgage rates, this indicator is charging higher.

Construction Spending Rises

Why Warren Buffett And Charlie Munger Don't Like REITs But You Should

Alerian MLP ETF

Saba Closed-End Funds ETF

First Trust Income Opportunity ETF

iShares iBoxx High Yield Corporate Bond ETF

Invesco CEF Income Composite ETF

VanEck CEF Municipal Income ETF 

YieldShares High Income ETF

ETFs Of CEFs: Diversification And Higher Distributions

Closed-end funds typically appeal to a niche group of income investors. But when you package these into ETFs, you have the potential to do two things: 1) attract new investors and 2) create a core holding for CEF investors.

ETFs of CEFs: Diversification and Higher Distributions

Entry point alone, with VNQ down 30% could beat the market in the next decade with the current massive, growing dividend yield. REITs are the most interest rate sensitive sector of the economy, and the government will eventually need to lower rates to fuel their own expansion. Vanguard is my favorite ETF operator and the one private asset manager without the pressure of corporate profitability.

3 REIT ETFs: A Call On A Rate Cut Next Year

The Real Estate sector, including REITs, is currently undervalued compared to other sectors. The iShares Core U.S. REIT ETF offers a cost-effective way to access a diversified portfolio of domestic REITs. USRT has underperformed the S&P 500 and faces challenges due to a weak dividend payout and poor price action.

USRT: Wait For Better Momentum And Relative Strength

Amidst the bearish sentiment towards real estate, a compelling opportunity to own REITs has emerged. The deeply discounted REIT market has largely priced in the challenges for real estate of higher rates and tighter credit markets. Areas of concern for real estate - office properties or too much leverage - are well-contained in public REIT markets. REITs generally possess high-quality balance sheets and have minimal exposure to traditional office space.

Opportunities In Listed REITs Today

I hold a significant allocation towards quality REITs. In this article, I share my bullish thesis for investing in the sector. I also highlight catalysts that could take quality REITs to new all-time highs in as little as 12 months.

My Bullish REIT Thesis And Catalysts That Could Take Us To New ATHs

Data extracted from all of VettaFi's digital properties from the data and analytics tool Explorer indicate that investor interest in real estate ETFs has remained steady in the past three months. VettaFi's LOGICLY tool allows us to examine some of the leading ETFs in the U.S. real estate space.

Real Estate ETFs: The Top Funds in the Sector

InfraCap MLP

Advisorshares Hotel ETF

Advisorshares Restaurant ETF

Fidelity MSCI Energy Index ETF

Fidelity MSCI Financials Index ETF

Gabelli Financial Services Opportunities ETF

Invesco Dynamic Media ETF

Invesco S&P SmallCap Consumer Staples ETF

Invesco S&P SmallCap Financials ETF

Invesco S&P SmallCap Materials ETF

Invesco S&P 500 Equal Weight Communication Services ETF

Spear Alpha ETF

SPDR S&P Aerospace & Defense ETF

SPDR S&P Health Care Equipment ETF

I leverage my firm's data to identify three red flags you can use to avoid the worst ETFs.

How To Avoid The Worst Sector ETFs 3Q23

Allow me to utilize 2 overused quotes: Buy when there is blood in the streets. Be greedy when others are fearful.

Peak Bear Has Arrived In Real Estate

90% of USRT's investments are made in five sectors - specialized REITs, industrial REITs, retail REITs, residential REITs and healthcare REITs. Price growth generated by industrial & specialized REITs is getting offset by residential and retail REITs. Price growth of healthcare REITs is not stable. USRT has been able to deliver a consistent yield of 3 to 4 percent, irrespective of the economic scenario, but its total return has been disappointing.

USRT: Diversified Equity REIT Fund With Decent Yield, But Poor Price Growth

Virtus Real Asset Income ETF

U.S. equity markets climbed to their highs of the year as investors took positions ahead of a critical slate of inflation data and an anticipated "pause" in the Fed's rate hike cycle.

Fed Looms Over New 'Bull Market'

Wall Street experts differ in their outlooks for America's housing market.  Wharton professor Jeremy Siegel, real estate tycoon Jeff Greene, and others have warned that home prices will drop, while others like "Shark Tank" star Barbara Corcoran are more optimistic.

Wall Street is divided on the outlook for US house prices. Here's what 6 experts have recently said.

In recent years, specialized technology-adjacent property types such as towers, data centers and industrial have gained prominence in the real estate market due to changes in consumer behavior, technological advancements, and their critical role in supporting the modern economy. The REIT universe looks much different today, appropriately reflecting the changes that are happening all around us. REITs are not just constrained to malls and offices; quite the contrary, the REIT sector is a dynamic one, with exposure to both secular growth dynamics and sources of bulwark stability.

REITs: Ever Changing, Ever Valuable

A lot of investors appear to think that REITs will drop lower. They believe that their valuations aren't low enough. Do they have a point? We take a closer look and issue a warning to those REIT investors who are trying to time the market.

Important Warning For REIT Investors

Real Estate Investment Trusts (REITs) have underperformed this year as the industry comes under substantial headwinds. The Vanguard Real Estate ETF (VNQ) and the iShares Core US RET ETF (USRT) stocks have all crashed by over 15% from their highest levels this year.

News for iShares Core U.S. REIT ETF ETF (USRT)