ALPS Active REIT ETF

REIT

Market cap $49.7M

There's no shortage of real estate ETFs for advisors and investors to consider. With Federal Reserve's interest rate policy still in flux, market participants may want to consider an active approach to real estate equities.

After 1,078 trading days, U.S. REITs (FTSE NAREIT All Equity Total Return Index) reached new all-time highs on Friday, April 17. Commercial real estate (CRE) has already undergone a significant valuation reset, while many other public and private markets have yet to experience a comparable repricing. Signals from the U.S. listed REIT market indicate that real estate is transitioning from recovery to expansion, as valuations move above prior cycle highs.

One source of allure with the real estate sector is its reputation for delivering above-average payouts. Knowing that is only part of the equation for income investors.

Broad gauges of real estate investment trusts (REITs) aren't setting the investment world ablaze in the first quarter of 2026. However, the real estate sector is outperforming the broader market.

The ALPS Active REIT ETF (REIT) surged 10.4% year-to-date through mid-February, marking a sharp reversal for real estate investment trusts after ending 2025 down 0.68%, according to a Tuesday webinar, “REITs are Recovering: Here's What to do Next,” hosted by SS&C ALPS Advisors.

Advisors and investors know that one source of allure with the real estate sector is its history of above-average dividends.

The REIT sector closed out 2025 with a tough December (-1.48%) and finishing the year with a -3.57% total return for 2025. Small caps (+0.51%) eked out a small gain in December, while mid caps (-1.77%), large caps (-2.55%) and micro caps (-3.88%) fell at the close of the year. 42.04% of REIT securities had a positive total return in December with only 38.36% in the black for the full year.

Real estate investment trusts (REITs) and the related ETFs didn't set the investing world ablaze last year, even as the Federal Reserve pared interest rates three times. However, that disappointment could give way to better things in 2026.

Owing in part to its capital-intensive nature, the real estate sector is often viewed as one of the groups most sensitive to interest rate fluctuations. Yet even with some help from the Federal Reserve over the past two years, the sector has disappointed.

The shutdown-delayed U.S. jobs report for November will shed light on the extent of labor market weakening that could help determine the Federal Reserve's next rate move.