What is a real estate investment trust? The ETF holds almost different stocks, with substantial allocations to retail, residential, office, healthcare, industrial, and hotel REITs, as well as more specialized real estate investment trusts. However, the overwhelming majority of REITs invest in either one type of real estate asset or the other. There are some advantages and disadvantages to each type. We do receive compensation from some partners whose offers appear here. The investment trust industry is much smaller than its more mainstream open-ended rival. In addition, ETFs impose an extra layer of fees, and although those costs aren’t generally very high, they still represent a reduction in the amount of income you’ll receive from your REIT investment.