5 Best REIT ETFs to Buy Now

3. The Real Estate Select Sector SPDR Fund (NYSE:XLRE)

The Real Estate Select Sector SPDR Fund (NYSE:XLRE) covers a variety of top real estate companies in the S&P 500 index. It includes companies from real estate management and development and REITs. The fund was founded in 2015 and returned 31.7% to shareholders since then. As of June, The Real Estate Select Sector SPDR Fund (NYSE:XLRE) holds 39 stocks in its portfolio while offering an expense ratio of 0.10%. The fund’s net assets stood at $5.05 million. On March 21, the fund announced a quarterly dividend of $0.2685 per share, with a yield of 2.61%, as of June 13.

One of the most prominent holdings of The Real Estate Select Sector SPDR Fund (NYSE:XLRE) is Digital Realty Trust, Inc. (NYSE:DLR), a California-based REIT that invests in carrier-neutral data centers and also provides peering services. In June, Citigroup acknowledged the multi-product strategy of the company which would help it to grow its future revenues and profits per share. Given this, the firm set a $160 price target on Digital Realty Trust, Inc. (NYSE:DLR), while maintaining a Buy rating on the shares.

In Q1 2022, Digital Realty Trust, Inc. (NYSE:DLR) posted an FFO of $1.67, which exceeded expectations by $0.02. Also, the company’s revenue showed a 4% year-over-year growth at $1.13 billion and also fell in line with the market estimates. For FY22, the company expects its FFO to fall between $6.80 and $6.90.

The number of hedge funds tracked by Insider Monkey owning stakes in Digital Realty Trust, Inc. (NYSE:DLR) grew to 31 in Q1 2022, from 26 in the previous quarter. These stakes hold a collective value of $556.7 million, up from $409 million worth of stakes held by hedge funds in Q4 2021. Steve Cohen and Ken Griffin were the major stakeholders of the company at the end of March 2022.