Real estate-focused ETFs can offer investors exposure to the asset class without being a landlord or putting down large amounts of cash. Additionally, it gives investors exposure to commercial, residential or both types of real estate.

Given the current market backdrop with Covid-19, which is the best type of exposure?

“Right now, the commercial sector is going through a challenging time with retail properties, hotel, and office being hit the hardest by COVID-19,” a Millionacres article noted. “This means those sectors are experiencing dips in revenues and values are decreasing because demand is down. This can be a good time to pick up properties in these asset classes at a discount, but it takes a skilled investor to know how to redevelop or revive the investment to meet current demand.”

“Residential real estate is still a really great investment choice and definitely the more common choice for investors, especially those just getting started in real estate investing,” the article added. “It’s an appealing choice because there are so many creative and accessible ways to get started in residential real estate, even with little money.”

^MSEMURE data by YCharts

ETF investors who want to take advantage of the forthcoming changes in real estate can look at the FlexShares Global Quality Real Estate Index Fund (GQRE). The fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Global Quality Real Estate IndexSM. The index is designed to reflect the performance of a selection of companies that, in aggregate, possess greater exposure to quality, value, and momentum factors relative to the Northern Trust Global Real Estate Index.

Another fund to check out is the Xtrackers International Real Estate ETF (HAUZ), which seeks investment results that correspond generally to the performance of the iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index. iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index is a free-float capitalization-weighted index that provides exposure to publicly traded real estate securities in countries outside the United States, Pakistan, and Vietnam.

One more fund to look at is the Vanguard Real Estate ETF (NYSEArca: VNQ). VNQ seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of the MSCI US Investable Market Real Estate 25/50 Index that measures the performance of publicly traded equity REITs and other real estate-related investments.

For more market trends, visit the ETF Trends.