ETF Asset Class: Real Estate A real estate ETF is an exchange-traded fund that invests in real estate and real estate-related assets. The fund may hold a portfolio of real estate stocks, REITs, real estate mutual funds, or other real estate-related securities. Real estate ETFs offer investors a way to diversify their portfolios and gain exposure to the real estate market without having to directly invest in real estate. Real estate ETFs are subject to the same risks as other real estate investments, including risks related to the underlying property, changes in the real estate market, and general economic conditions. However, real estate ETFs may also be subject to risks associated with the type of securities held in the fund, such as stock market risk or interest rate risk.