Real Estate Mutual Funds

Real estate mutual funds are professionally managed portfolios of real estate stocks and REITs. While they offer diversification and professional management, they have largely been superseded by low-cost ETFs. Mutual funds often come with higher expense ratios and are less tax-efficient than their ETF counterparts. They are still a viable option for investors who prefer active management and are willing to pay for it, but for the vast majority of investors, they are no longer the most efficient way to gain real estate exposure in the public markets.