USRT — iShares Core US REIT ETF
USRT is iShares' low-cost REIT ETF, launched to compete with SCHH and VNQ on price while maintaining iShares brand quality. At 0.08%, it is nearly as cheap as SCHH (0.07%) and considerably cheaper than IYR (0.41%). USRT tracks the FTSE NAREIT Equity REITs Index which focuses exclusively on equity REITs (property owners) and excludes mortgage REITs. It provides diversified exposure to all property sectors at minimal cost.
Top Holdings
Strategy
- →Use as a low-cost REIT core for iShares-platform investors who want to minimize fees
- →Hold in tax-advantaged accounts for maximum after-tax REIT income
- →Pair with VNQI for a global real estate allocation at low cost
- →Rebalance annually to maintain target real estate allocation
Best For
- ✓Cost-conscious iShares investors who want to minimize REIT ETF fees
- ✓Those who prefer iShares quality at near-SCHH prices without switching platforms
- ✓Long-term REIT investors for whom fee minimization is a priority
- ✓Balanced portfolio builders who want a cheap, diversified US equity REIT core
Key Risks
- ⚠Real estate sector concentration and interest rate sensitivity
- ⚠REIT ordinary income creates tax drag in taxable accounts
- ⚠Excludes mortgage REITs — different composition than broader indexes
- ⚠Slightly less liquid than VNQ given smaller AUM
Similar ETFs
Frequently Asked Questions
How does USRT compare to VNQ?
USRT charges 0.08% versus VNQ's 0.12% — USRT is slightly cheaper. They track different REIT indexes but cover similar US equity REIT universes. For iShares users who prefer lower cost than IYR, USRT is a much better option. This is educational content, not financial advice.
Does USRT include mortgage REITs?
No. USRT tracks the FTSE NAREIT Equity REITs Index which includes only equity REITs (property owners) and excludes mortgage REITs. This is educational content, not financial advice.
Does USRT pay quarterly dividends?
Yes, USRT distributes quarterly income from its equity REIT holdings. Distributions are primarily ordinary income. This is educational content, not financial advice.
Is USRT better for taxable accounts than VNQ?
Both have similar tax efficiency issues given REIT ordinary income. The marginal cost savings (0.04% over VNQ) are minor. The primary reason to choose USRT over VNQ is platform preference. This is educational content, not financial advice.
What sectors does USRT cover?
USRT covers all equity REIT sectors including industrial, residential, retail, office, healthcare, data centers, and cell towers. This is educational content, not financial advice.
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