Investing in TSX REITs Canada and real estate ETF Canada options is a smart way to earn steady, passive income without the stress of being a landlord. Below are the top five picks on the TSX, each with unique strengths depending on your investment goals.
1. iShares S&P/TSX Capped REIT Index ETF (XRE)
Ticker: XRE
Overview: Tracks a broad mix of Canadian REITs across sectors like residential, retail, office, and industrial.
YTD Performance: ~+10.7% (as of mid-2025)
Features: Monthly dividends, broad exposure, and easy diversification in one ETF.
Why it works: Perfect for passive investors who want simple, diversified real estate exposure without picking individual REITs.
2. SmartCentres REIT (SRU.UN)
Ticker: SRU.UN
Focus: Retail-focused, anchored by large shopping centres with tenants like Walmart.
Dividend Yield: ~7.2%
Why it works: Known as “boring but safe,” SmartCentres provides consistent, high-yield income from stable tenants.
3. RioCan REIT (REI.UN)
Ticker: REI.UN
Focus: Large retail and mixed-use properties, often anchored by grocers in urban centres.
Dividend Yield: ~6.5%
Why it works: A balance of defensive grocery-anchored properties and urban mixed-use spaces, giving both stability and yield.
4. CT REIT (CRT.UN)
Ticker: CRT.UN
Focus: Commercial properties leased mainly to Canadian Tire.
Dividend Yield: ~5.8%
Why it works: Backed by a strong national tenant, this REIT offers predictable rent and steady performance.
5. Canadian Apartment Properties REIT (CAPREIT – CAR.UN)
Ticker: CAR.UN
Focus: Residential apartments and townhomes across Canada, Ireland, and the Netherlands.
Dividend Yield: ~3.5%
Why it works: Canada’s largest residential REIT with ~67,000 units, offering stability and geographic diversification.
📊 Quick Comparison
| REIT / ETF | Yield (approx.) | Focus | Highlight |
| XRE (ETF) | ~5.3% | Broad REIT exposure | Diversified, monthly payouts |
| SRU.UN | ~7.2% | Retail big-box centres | High yield, Walmart anchor |
| REI.UN | ~6.5% | Urban retail & mixed-use | Grocery stability, transit access |
| CRT.UN | ~5.8% | Commercial retail (CTC) | Reliable tenant income |
| CAR.UN | ~3.5% | Residential apartments | Largest REIT, steady rents |
Why These Picks Matter
- Steady monthly income: All provide consistent dividend payouts.
- Diversification: Choices across retail, residential, commercial, and ETFs.
- Convenience: TSX-listed and easy to buy through online brokers.
- Portfolio fit: Mix and match based on your need for yield vs. stability.
Real-Life Investor Insights
Retail-focused REITs like SRU.UN faced price dips during COVID and high interest rate cycles, but many investors highlight that dividends offset paper losses. For example: “That’s just the price loss, no? If you count the dividends, the investment should be up.”
Experts often recommend ETFs like XRE, VRE, or ZRE for broader exposure with monthly income, while direct REITs such as SRU.UN or CAR.UN work for investors seeking higher yield or sector-specific plays.
Tips for Picking and Holding REITs
- Diversification vs. focus: Use ETFs like XRE for broad exposure, or pick REITs directly for targeted strategies.
- Watch fees: XRE charges ~0.61%, while Vanguard’s VRE ETF is ~0.39%.
- Sector risk: Retail REITs depend on foot traffic, while residential and commercial REITs have different stability levels.
- Use TFSA/RRSP: Registered accounts shelter distributions and boost long-term returns.
✅ Final Takeaways
- XRE: Best for diversified exposure and hands-off investing.
- SRU.UN: Top choice for high-yield, retail-focused income.
- REI.UN: Balanced urban and grocery-anchored real estate.
- CRT.UN: Reliable tenant rents from Canadian Tire.
- CAPREIT (CAR.UN): Lower yield but excellent residential stability.
Source : fulinspace.com