REIT ETF Definition
REIT ETF is the abbreviation for exchange-traded funds holdings stocks in Real Estate Investment Trust. REITs are corporations that own portfolios of real estate. They are obliged to pay out most of their profits in the form of dividends to qualify for corporate tax breaks. The high payout and the idea that REITs do not move together with the stock market make them an important diversification tool for investors. As other ETFs, the REIT ETFs are baskets of stocks of multiple companies.