Publicly Traded Funds
Explore how publicly traded funds like REITs and ETFs offer accessible real estate investing in Canada without owning physical property.
May 22, 2025
What is a Publicly Traded Fund?
Publicly traded funds are investment vehicles like Real Estate Investment Trusts (REITs) and Exchange-Traded Funds (ETFs) that can be bought and sold on public stock exchanges.
Why Do Publicly Traded Funds Matter in Real Estate
In Canadian real estate, publicly traded funds—particularly REITs—offer a way to invest in property markets without owning physical property. These funds pool investor money and invest in portfolios of income-generating assets.
Key benefits include:
- Liquidity: shares can be traded daily on the stock market
- Diversification: exposure to different property types and regions
- Accessibility: lower entry cost compared to buying real estate
- Regular income through dividends
Publicly traded real estate funds may invest in:
- Apartment buildings
- Shopping centres and retail plazas
- Office towers or industrial parks
- Healthcare, storage, or infrastructure assets
Investors should evaluate fund performance, management fees, and underlying assets. While these funds offer passive exposure to real estate, they are still subject to market volatility.
Understanding publicly traded funds gives investors a flexible alternative to direct property ownership with lower barriers to entry.
Example of a Publicly Traded Fund in Action
An investor buys shares in a Canadian REIT that owns commercial properties across Ontario, receiving monthly dividends based on tenant rental income.
Key Takeaways
- Invest in real estate via the stock market.
- Offers diversification and liquidity.
- Includes REITs and ETFs.
- Generates dividend income.
- Subject to market risks like any equity.
Related Terms
- REIT
- ETF
- Dividend Stocks
- Passive Income
- Real Estate Investing
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