How does Real Estate ETF work?

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Can someone help clarify how a real estate ETF works?

Given that real estate is tangible, whereas ETFs traditionally track intangible assets (stocks), how are real estate ETF valued if they are tangible goods? This feel like a dumb question.

In: Economics

4 Answers

Anonymous 0 Comments

Real estate ETF’s are typically just industry-specific funds investing in REIT stocks. The ETF isn’t directly buying properties, it’s buying shares in companies like CoStar, Equity Residential, Public Storage, Prologis that own and operate real estate holdings.

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