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Real estate ETFs deliver a solid returns for investors in 2021, with an average ROI of 45%

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By Staff Reporter

Real estate investors are now reaping from the sector that recorded a significant drop in 2020 as a direct impact of the pandemic. Returns posted by some of the best performing real estate exchange-traded funds show the sector has made strides in the first half of this year.

According to data acquired by Finbold, the three top-performing real estate ETFs had a return on investment at an average of 45.69% between January 1, 2021, and June 2, 2021. Direxion Daily Real EstateBull (DRN), which invests in public equity markets across the United States, is the best performing real estate ETF with gains of 67.41%.

ProShares Ultra RealEstate (URE) ranks in the second spot with returns of 40.48%, while Credit Suisse X-LinksMonthly Pay 2xLeveragedMortgage REIT ETN (REML) is third with returns of 29.20%.

Real estate focused on sustaining momentum 

At the moment, the real estate sector still has some barriers to clear before returning to pre-pandemic levels and the report highlights the outlook for the industry in 2021. According to the research report:

“There is also no ruling out that real estate ETFs investments also carry risks, and it is influenced by factors that shape the general market. Investors opt to look out for the interest rates, employment rates, and other economic factors. A combination of these factors will influence the ability of the real estate ETF to return to the pre-pandemic levels. The current concern for investors is if the current real estate ETF growth trends will be sustainable in 2021.”

The continued reopening of the economy due to the coronavirus vaccines rollout will play a key role in the sector’s recovery.

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