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TSE:ZRE

BMO Equal Weight REITs Index (ZRE.TO)

24.06
-0.20 (0.82%)
as of Jun 17, 2026, 7:59:29 pm Market Open.
143 watching
0
Investor Insights
star iconJun 17, 2026, 12:00 am

This summary was created by AI, based on 4 opinions in the last 12 months.

The BMO Equal Weight REITs Index ETF, symbol ZRE-T, has garnered mixed reviews among experts. One analyst expresses optimism for the REIT sector, citing potential recovery in performance amidst a choppy trading environment and persistent inflation, suggesting REITs as a viable option for dividend income. However, another expert has issued a stop-loss recommendation due to recent declines, indicating caution even after a modest investment gain. Despite the cautious outlook from some, there is a consistent belief that lower interest rates could benefit the REIT sector, with future price targets showing a potential upside. Overall, diversifying through a well-balanced REIT portfolio is seen as a prudent strategy, given its attractive yield rates and trading conditions below book value.

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Consensus
Cautious
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Valuation
Undervalued
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Similar
RYLD
COMMENT
HCRE is a tax efficient way to have an equal weight exposure to REITs in Canada. BMO has ZRE.
PARTIAL BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. In a recovery scenario, there is a long term potential for good returns. You should look at a 3+ year horizon. It is not risk free. Unlock Premium - Try 5i Free

BUY ON WEAKNESS
Trailing yield is around 5%. Playing on an equal weight basis is probably easier since you get more exposure to the industrial and apartment REITs which have good value and growth potential. It is the retail and office sector that will be challenging in the next years.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. In the current state of REITs, ZRE is an equal weight ETF that reduces single company risk. A good choice for the sector today. Unlock Premium - Try 5i Free

WATCH

XRE-T showed the experience of the REIT sector in a bad economy. Interest rates are going lower and lower. REITs are typically one of the last things to drop. When the baby gets thrown out with the bathwater, REITs go down also. The pullback last week is the first part of a short term trade you could do but it would not be for a long term hold.

COMMENT
It mimics the REIT index. You have to know what you own. This is monthly dividend. Everyone should have a real estate component in their investments.
COMMENT
You're buying something where big box retailers are dropping like flies and property valuation is very high. Right now, it's an odd space to be in. The retail space makes him cautious.
PAST TOP PICK
(A Top Pick Mar 22/19, Up 5%) He is out of it now. It was a 6 month pick. You could still pick this one up though. He does not see too much impact from interest rates. He thinks rates might push up a little over the next year.
BUY
It has worked out well because interest rates fell through the floor. He thinks equal weight is better. As long as economic growth remains reasonable and interest rates remain really low, it should be okay.
PAST TOP PICK
(A Top Pick Mar 22/19, Up 2%) Resistance at $24 but we'll probably see a push higher as the real estate markets heat up again.
TOP PICK
Breakout was pretty substantive. Looking at the price action, this suggests that rates aren't going to surge higher and cause people problems. Stability here. Not a huge upside, but risk/reward is really, really good. More of a core position. A year from now, this pick will still be good. Yield is 4.32%.
DON'T BUY

VNQ-N in the US is a read on the index in the US. It has been in a pretty reliable trading range for a year or so but we broke out of it. Then look at ZRE-T and it is a different picture. There is much more risk in the Canadian REITs here. Even with a dovish rate increase he does not think you want to buy it here. You need a more significant dip here to buy it. He prefers below $19.

SELL

He likes it when the risk adjusted returns are attractive. Friday he sold REITs in his dividend fund. If it gets below $18, it would be attractive again because of the yield.

COMMENT

The REITs market is very subject to interest rates. If you are buying into REITs, you have to be aware that there has been a big explosion in real estate, however you have managers that know what they are doing. If you want to be in the sector, it has a good rate of return. Just be a little cautious and don’t go nuts.

COMMENT

REITs are little bit on the cheap side compared to world indexes, but he does not think they are good value. The interest rates going into next year are too high. He does not like the market risk overall. He likes the sector for the dividend, but not for the total return. It is attractive if you don’t mind the volatility risk short term.

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