5 Best REIT ETFs to Buy Now

2. Schwab U.S. REIT ETF (NYSE:SCHH)

Schwab U.S. REIT ETF (NYSE:SCHH) is a passively-managed fund that tracks the market-cap-weighted index of US real estate investment trusts and excludes mortgage and hybrid REITs. The fund offers simple access to REITs as its holdings are restricted to investment trusts that directly own real estate. As of June, the fund has 141 holdings, with the top 10 positions representing 43% of the portfolio. As Schwab U.S. REIT ETF (NYSE:SCHH) selects its stocks based on market cap, the average market cap of its securities stood at $42.4 billion, as recorded in March 2022. The fund’s total assets amounted to over $6 billion at the end of May.

One of the major holdings of Schwab U.S. REIT ETF (NYSE:SCHH) is Prologis, Inc. (NYSE:PLD), a California-based REIT formed by the merger of AMB Property and ProLogis in 2011. In Q1 2022, the company posted an FFO of $1.09, beating estimates by $0.02. The company reported revenue of $1.22 billion, showcasing a 6% year-over-year growth and also beat market consensus by $130 million. For FY22, Prologis, Inc. (NYSE:PLD) expects its FFO to be in the range of $5.10 to $5.16, versus the consensus of $5.04. In June, Wells Fargo highlighted the strong business fundamentals of PLD and set a $160 price target on the stock, with an Overweight rating on the shares.

As per Insider Monkey’s database for Q1, 37 hedge funds owned stakes in Prologis, Inc. (NYSE:PLD), the same as in the previous quarter. The consolidated value of these stakes is over $546.5 million. AEW Capital Management held the largest stake in the company in Q1, worth $326.9 million.