A real estate fund is a sector fund that primarily invests in the securities issued by companies that invest in real estate projects. Such funds can directly invest in real estate companies or in Real Estate Investment Trusts (REITs). Investing through such funds allows individual investors to be a part of the growing real estate sector. Let’s take a look at the ten best performing real estate funds.
Ten Best Performing Real Estate Funds
We have used the funds’ past one-year return data (from money.usnews.com) to rank the ten best performing real estate funds, in reverse order.
10. JHancock Real Estate Securities (37%)
JHancock Real Estate Securities Fund (MUTF:JYEBX) primarily invests in the equity securities of REITs and real estate companies. It may also invest up to 10% of its assets in the securities of foreign real estate companies. This fund has returned over 12% in the last six months and over 14% in the last three years.
JYEBX has more than $389 million in total assets. Its top five holdings are: Prologis (NYSE:PLD), Extra Space Storage (NYSE:EXR), AvalonBay Communities (NYSE:AVB), Welltower (NYSE:WELL), and American Tower (NYSE:AMT).
9. BlackRock Real Estate Securities Fund (37%)
BlackRock Real Estate Securities Fund (MUTF:BAREX) mainly invests in a portfolio of equity securities of the issuers that are engaged in or related to the U.S. real estate industry. This fund has returned over 11% in the last six months and over 14% in the last three years. BAREX has more than $570 million in total assets. Its top five holdings are: Prologis, Equinix (NASDAQ:EQIX), Simon Property Group (NYSE:SPG), Extra Space Storage and Mid-America Apartment Communities (NYSE:MAA).
8. T. Rowe Price Real Estate Fund (38%)
T. Rowe Price Real Estate Fund (MUTF:TRREX) primarily invests in REITs, as well as in real estate operating companies. This fund was launched in 1997. This fund has returned almost 13% in the last six months and over 10% in the last three years. TRREX has more than $1.70 billion in total assets. Its top five holdings are: Prologis, Equinix, Welltower, Camden Property Trust (NYSE:CPT), and Equity Lifestyle Properties (NYSE:ELS).
7. Virtus Duff & Phelps Real Estate Secs Fd (40%)
Virtus Duff & Phelps Real Estate Securities Fund (MUTF:PHRAX) usually invests in publicly-traded REITs and companies that primarily deal in the real estate industry. This fund has returned over 13% in the last six months and over 15% in the last three years. PHRAX has more than $580 million in total assets. Its top five holdings are: Prologis, Equinix, Simon Property Group, Sun Communities (NYSE:SUI) and Duke Realty (NYSE:DRE).
6. DoubleLine Colony Rl Estt Inc Fd (40%)
DoubleLine Real Estate and Income Fund (MUTF:DBRIX) aims for a total return that is more than that of its benchmark index, the Dow Jones U.S. Select REIT Total Return Index. It invests in a portfolio of debt securities. This fund has returned over 12% in the last six months. DBRIX has more than $17 million in total assets. Its top three holdings are: BXIICCRE INDEX SWAP 060922, BXIICCRE INDEX SWAP 082522 and United States Treasury Notes 0.63%.
5. PGIM US Real Estate Fund (40%)
PGIM US Real Estate Fund (MUTF:PJEAX) mainly invests in the equity-related securities of U.S. real estate companies, especially REITs and other real estate securities. It may also invest in foreign real estate companies. This fund has returned almost 13% in the last six months and almost 17% in the last three years. PJEAX has more than $68 million in total assets. Its top three holdings are: Prologis, Welltower and Simon Property Group.
4. Terra Firma US Concentrated Rlty Eq Fd (41%)
Terra Firma US Concentrated Realty Equity Fund (MUTF:TFREX) normally invests in the equity securities of U.S. Realty Companies, as well as synthetic instruments related to U.S. Realty Companies. This fund has returned over 16% in the last six months and almost 16% in the last three years. TRFREX has more than $39 million in total assets. Its top three holdings are: Prologis, Equinix and Essex Property Trust (NYSE:ESS).
3. MainStay CBRE Real Estate Fund (44%)
MainStay CBRE Real Estate Fund (MUTF:CLARX) usually invests in common and preferred stocks of U.S. REITs and other real estate companies. It generally doesn’t invest in companies with a market capitalization of less than $100 million. This fund has returned over 13% in the last six months and almost 15% in the last three years. CLARX has more than $470 million in total assets. Its top three holdings are: American Tower, Prologis, and Crown Castle International (NYSE:CCI).
2. VY® Clarion Real Estate Portfolio (45%)
VY® Clarion Real Estate Portfolio (MUTF:IVRSX) normally invests in common and preferred stocks of U.S. real estate investment trusts and real estate companies. This fund has returned almost 15% in the last six months and over 15% in the last three years. IVRSX has more than $300 million in total assets. Its top three holdings are: Prologis, Simon Property Group, and Extra Space Storage.
1. PIMCO Real Estate Real Ret Strat Fd (46%)
PIMCO RealEstateRealReturn Strategy Fund (MUTF:PETAX) mainly invests in real estate-linked derivative instruments that are backed by a portfolio of inflation-indexed securities and other Fixed Income Instruments. This fund has returned over 13% in the last six months and over 16% in the last three years. PETAX has more than $1.40 billion in total assets. Its top three holdings are: Dwrtft Trs Equity 1Ml+37 Ulo, Euro Schatz Future Dec 21, and United States Treasury Notes 0.125%.