Is REIT a good ETF?
REIT is the VanEck FTSE International Property (AUD Hedged) ETF from VanEck. It tracks the FTSE EPRA Nareit Developed ex Australia Rental Hedged into AUD Index. We classify it under Intl and Thematic. With about $803 million in assets it is a solidly established fund. Listed on the ASX since 2017-05-24 (over 9 years ago).
On a total-return basis, REIT has delivered 0.88% a year over 5 years (ranked 157th of 188 ETFs we track), 8.66% a year over 3 years (ranked 136th of 226 ETFs we track), and 18.65% a year over 1 year (ranked 56th of 308 ETFs we track). Its strongest showing is over 1 year, where it sits in the top 18% of all ETFs we track.
The management fee of 0.2% is reasonable. That's cheaper than the typical 0.48% for similar ETFs. If cost is your priority, GLPR (0.15%) cover similar ground for less. It pays a healthy 4.36% yield, attractive if you want regular income. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 5 years its volatility has been elevated (annualised standard deviation around 16.92%), meaning noticeably larger swings than the broad market. Its 3-year Sharpe ratio of 0.36 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is very low at about 5% a year — the portfolio barely changes from year to year, much like a classic buy-and-hold index fund. Very little of its return is lost to trading or to capital gains being realised early, making it highly tax-efficient.
Strengths
- Top-18% returns over 1 year (56th of 308 ETFs we track).
- Low-cost: a 0.2% management fee keeps more of the return in your pocket.
- Pays a useful 4.36% income yield.
Things to watch
- Has lagged most peers over 5 years (157th of 188).
- Cheaper alternatives exist: GLPR.
- Weak risk-adjusted returns (3-year Sharpe ratio 0.36).
- Highly concentrated single-theme bet — keep the position size small.
What REIT's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.