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iShares S&P/TSX Capped REIT Index Fund (TSX: XRE)

provides long-term capital growth by replicating the performance of the S&P/TSX Capped REIT Index

This fund invests in all classes of REITs, including residential, industrial, retail, and office. It has 14 holdings, the largest of which is RioCan REIT, which accounts for 13.14% of total assets. Retail REITs form about 51% of the portfolio while exposure to office REITs, which were hit hard during the pandemic, is very low at 3.33%.

The REIT has not delivered anything in the way of capital gains since it was recommended 15 years ago, which says a lot about the overall state of Canada’s real estate business. But it has delivered steady cash flow to investors and has significantly outperformed the overall sector year-to-date with a gain of just over 15%.


Income Investor

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Advanced Performance Chart

XRE was first recommended here on June 27, 2007