Investment Insights Portfolio Strategies

Exploring REITS, real estate ETFs and mutual funds

Explore alternative ways to gain exposure to real estate — no property required.

CIBC Investor’s Edge Dec. 11, 2025 4-minute read

When most people think about real estate, they picture home ownership — and for good reason. Owning a house or condo is the most common way Canadians build real estate into their overall financial picture. But there are many reasons someone might want exposure to real estate without actually owning it: property could be too expensive, too hands-on, or just not part of your current goals.

The good news? You don’t need to buy a house to add real estate to your portfolio. From REITs and ETFs to limited partnerships and crowdfunding platforms, today’s investors have more options than ever. Just keep in mind that every investment has its own risks and rewards, so always consider your personal situation before jumping in.

REITs and real estate funds

One of the simplest ways to invest in real estate without directly owning property is through a real estate investment trust (REIT). These companies own, operate and finance income-generating real estate and pay dividends to investors. Because many REITs trade on stock exchanges, they offer liquidity and ease of access, without the hassle of maintaining a property.

To increase diversification, you can also consider REIT ETFs or real estate mutual funds.

REIT ETFs invest in multiple REITs and aim to track a real estate index. Their holdings are reported daily, and they trade throughout the day like stocks.
Real estate mutual funds invest in REITs and related public companies, like firms that manage senior housing. They’re professionally managed, but generally less transparent than ETFs. Holdings are reported quarterly instead of daily.

Real estate partnerships or lending structures

Looking beyond public markets? There are also private real estate investments that let you team up with other investors — though these tend to carry higher risks and may require more due diligence.

Here are a few examples.

Real Estate Limited Partnerships (RELPs)

These private investment vehicles pool money from limited partners to invest in large-scale real estate projects. The general partner typically manages the project and makes decisions.

Syndicated mortgages or mortgage investment entities (MIEs)

These allow groups of investors to lend money that is secured by real estate, either to individuals or developers. These structures can offer high yields, but they’re complex and may be less liquid.

Real estate crowdfunding platforms

Newer digital platforms bring together like-minded investors to co-purchase properties and share in potential profits. Some aim to make real estate investing more accessible — but they may lack the protections and track record of traditional products.

Private real estate deals

Private deals may be less regulated, harder to sell, and higher risk. Always research thoroughly before committing to any investments.

Comparing to direct ownership

Here’s how hands-off real estate investments stack up against buying a property.

Feature	REITs, ETFs, Funds	Private investments	Property ownership
Liquidity	High (especially ETFs)	Low to moderate	Low
Diversification	Easy to diversify	Project-specific	Depends on property
Effort	Minimal	Moderate	High
Minimum investment	Low	Moderate to high	High
Risk	Market risk	Higher due to complexity	Property-specific

Key takeaways

You don’t need to own a home to invest in real estate.
REITs, ETFs and mutual funds offer accessible, liquid ways to diversify your portfolio in this area.
Private structures like RELPs or syndicated mortgages may offer higher return potential, but carry higher risk and less liquidity.
As always, consider your goals, timeline, and risk tolerance before investing.

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