How To Invest In Real Estate ETFs

Real estate has long been a cornerstone of diversified portfolios, prized for its income potential, inflation protection, and lower correlation to traditional stocks and bonds. But not everyone wants to deal with the headaches of being a landlord.

That's where real estate exchange-traded funds (ETFs) come in. The funds let you invest in professionally managed portfolios of real estate companies without owning physical property.

Unlike rental properties, real estate ETFs offer instant diversification, no tenants to manage, no maintenance or repair costs, no mortgages, and no property taxes. Better yet, you can hold them in tax-sheltered accounts such as a Roth IRA (individual retirement account), making them a hassle-free way to tap into the real estate market.

This post originally appeared at The Motley Fool.