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TSE:XRE

iShares S&P/TSX Capped REIT Index ETF (XRE.TO)

17.02
-0.01 (0.06%)
as of Jun 19, 2026, 5:01:50 pm Market Open.
134 watching
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Investor Insights
star iconJun 19, 2026, 12:00 am

This summary was created by AI, based on 2 opinions in the last 12 months.

The iShares S&P/TSX Capped REIT Index ETF (XRE-T) presents a yield of 4.87%, which may seem appealing to some investors. However, experts caution about the inherent risks related to the Canadian real estate market, attributing uncertainties to economic fluctuations and immigration policies. While some investors express satisfaction with the yield, they also highlight challenges in capital appreciation, making it a difficult environment for REIT investors. Certain strategies, such as considering alternatives like Canadian banks or bank-covered call ETFs (such as ZEB), have been suggested to potentially navigate the market more effectively. Overall, without significant growth potential, investors need to assess their positions carefully and consider longer-term exit strategies if necessary.

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Consensus
Cautious
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Valuation
Fair Value
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Similar
Brookfield,BRK.A
BUY

REITs. Felt we were due for a little bit of a downturn in them. They are still great buys but you have to be selective with them. He still likes them. XRE-T is a recommendation.

WAIT

REITs. XRE-T and ZRE-T. Differences are the weightings. It's expensive and there is a 5% correction risk. Wait for that if you want to place more money. Sector should be okay from an interest rate perspective. Not a lot of value in the REITs at this point.

BUY

He likes the REITs. This is an ETF that has been perceived as safe money. Probably just bounced off support at just a little under $17. 4.4% yield. When rates move higher this will probably be hurt but doesn’t see that happening until late 2013.

COMMENT

He is a bit of a contrarian when it comes to REIT valuations. You have to be careful when you are overpaying for yield and the REIT sector kind of lends itself to that category. Has had a very good run. Most of the REITs are great operating businesses. But on a free cash flow basis, they are trading at a 14-16 times AFFO and he prefers 10-12 times. This is a good hedge against your long positions.

COMMENT

He likes real estate investment trusts. 35% of its portfolio is weighted in 2 stocks, RioCan (UN-T) and H&R (HR.UN-T). If you have concerns over this, you might consider an equal weight ETF such as BMO’s (ZRE-T) paying a little bit higher dividend yield of 4.75% versus 4.25%.

DON'T BUY
He really likes the REIT sector for low interest rates, "mark to market uptick". We are getting to very high level on the REITs right now. It's tough to see what is going to upset this area but that happens in markets. Doesn't see a problem in REITs but he wouldn't be buying right now.
BUY
Interest rates will affect this one. He holds it for the yield. Particularly RIOCAN and others will benefit from the migration of the US retailers to Canada. He doesn’t see rates going higher soon. Doesn’t see inflation on the horizon in the near future.
DON'T BUY
If you think there is any chance that we are in a real estate bubble, he would not look at this as particularly safe. It's a good diversifier and he likes it but at this point in the cycle, there are other hard assets that are less risky.
BUY
Interest rate sensitive. He finds it an attractive area to be in.
DON'T BUY
Nobody wants to trade options on it. Not very liquid.
BUY
#1 REIT in 2011.
COMMENT
S&P/TSX Capped REIT. Long-term hold writing covered calls or a short-term trade? He doesn't look at it as short-term. Also not sure you can do covered calls on it. Yield is about 5%. About 25% RioCan (REI.UN-T) whereas the Equal Weight REITs Index (ZRE-T) is equal weighted.
BUY
S&P/TSX Capped REIT. REIT space should continue to do well. It has the characteristics of being defensive and the yield is at about 4.8%. Also offensive because of the commercial space it is in. If the economy picks up, occupancy rates will continue to rise.
BUY
Likes REITs. Holds a basket of them, 5.25% yield. Nice defensive yield.
PAST TOP PICK
(A Top Pick Sept 3/10. Up 17.25%.) S&P/TSX REIT ETF. With the US plazas coming into Canada, this will look very good on Canadian real estate.
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