iShares Core US REIT ETF

USRT

Market cap $3.8B

The REIT sector roared back into positive territory after a very brutal March. REITs averaged a remarkable 8.9% April gain and now have a +6.31% year-to-date total return. Small-cap REITs (+11.35%) soared in April as large caps (+9.05%) and mid caps (+8.13%) also saw strong gains. Micro caps (+4.49%) were also in the black but badly lagged. 91.33% of REIT securities had a positive total return in April.

Surging oil prices and hotter inflation reports reignited rate-hike concerns, sending Treasury yields to one-year highs as the Iran conflict remained stalemated despite the highly anticipated Trump-Xi summit.

The iShares Core U.S. REIT ETF (NYSEARCA:USRT | USRT Price Prediction) is BlackRock's broad pass-through to the U.S.

U.S. equity markets advanced for a fifth straight week - their longest winning streak since 2024 - as strong earnings, resilient data, and hopes for lasting Iran peace fueled optimism. Investors looked through another oil-price surge and inflationary pressure, focusing instead on corporate resilience and economic strength despite a complex macro backdrop shaped by geopolitical and policy uncertainty. The Fed held rates steady in an unusually fractured 8-4 vote, while Powell's plan to remain on the Board broke precedent and raised politically charged succession questions.

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.

iShares Core REIT ETF remains a hold due to stretched valuations in top holdings and limited income advantage versus alternatives. USRT's leading REITs—Welltower, Prologis, and Equinix—are priced for perfection, with high P/AFFO multiples and recent sharp price appreciation. Elevated interest rates and opportunity cost versus bonds or high-yield savings accounts constrain USRT's outlook for income-focused investors.

Real estate has historically kept pace with inflation because landlords can raise rents as prices climb, passing cost increases directly to tenants.

After a solid January performance, the REIT sector recovery gained steam in February with a stronger +3.70% return. Large cap REITs (+5.80%) led the REIT sector in February with strong gains from mid caps (+5.26%) and small caps (+4.94%). Micro caps (-6.12%) badly underperformed again in February. 71.71% of REIT securities had a positive total return in February.

REIT ETFs, like SCHH, are in focus after the 30-year mortgage rate dipped to 5.98%, boosting real estate valuations and dividend appeal.

The REIT sector rebounded from a rough 2025 (-3.57%) by starting off 2026 in the black (+1.09%). Small-cap REITs (+3.27%) outperformed in January, followed by solid gains from mid-caps (+2.65%) and large caps (+2.35%). Microcaps, however, had a dismal start to the year with. 63.46% of REIT securities had a positive total return in January.