Can't break into the housing market? Here's 3 REIT ASX ETFs to consider

These three thematic funds focus on real estate 

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Home ownership and property investment remain common goals amongst Aussies. 

However, the median house price in capital cities currently sits at more than $1 million dollars. 

That means you're looking at a deposit of $200,000 to buy a house in a major city. 

While not all investors have that kind of cash to splash, you can still gain exposure to this sector through thematic ASX ETFs. 

Here's three to consider which focus on real estate investment trusts (REITs)

female real estate agent stands proudly in front of house

Image source: Getty Images

Vanguard Australian Property Securities Index ETF (ASX: VAP)

This fund offers a diversified blend of Australian real estate investment trusts (A-REITs) with residential, office, retail, and industrial assets.

A real estate investment trust (REIT) is a company that owns and operates property assets that typically produce income.

Some REITs focus on commercial real estate, such as offices, hospitals, shopping centres, warehouses, and hotels. Others specialise in residential property investment, such as aged care villages and apartment buildings.

This ETF seeks to track the return of the S&P/ASX 300 A-REIT index. 

At the time of writing it is made up of 31 holdings, with its largest allocation being to Goodman Group (ASX: GMG), which represents 39.50% of the fund. 

The fund has risen 44.66% over the past 5 years. 

The fund has a management fee of 0.23% per annum, and its next dividend payment is 161.2115 cents per unit. 

VanEck Vectors Australian Property ETF (ASX: MVA)

MVA ETF gives investors exposure to a diversified portfolio of Australian REITs. The fund is made up of a minimum of 10 Australian REITs, with a maximum weighting of 10% for each REIT.

This ETF currently has 14 holdings in the fund. 

Each company has a weighing of between 2% and 10%.

The fund has risen 33.40% in the last 5 years. 

MVA ETF offers more diversified positioning within A‑REITs compared to VAP ETF, which is heavily concentrated in Goodman Group.

The fund has a management fee of 0.35% p.a. Its dividend yield is currently 4.37%. 

SPDR S&p/asx 200 Listed Property Fund (ASX: SLF)

SLF ETF seeks to closely track, before fees and expenses, the returns of the S&P/ASX 200 A-REIT Index.

The ETF is managed by State Street Global Advisors. 

It is also heavily weighted (41.14%) towards Goodman Group. 

It currently has 20 companies making up the fund. 

Over the last 5 years, it has risen 36.61% 

The fund currently has a dividend yield of 3.15% and a management fee of 0.16% p.a.

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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