REM alternatives and similar ETFs

REM alternatives at a glance#

Each fund below can stand in for REM, closest first. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How REM and its alternatives did over the same dates#

Each row measures the alternative and REM on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each REM alternative, compared#

VNQ: Vanguard Real Estate ETF#

VNQ is a looser match. It holds US real estate investment trusts (REITs), companies that own and rent out property, while REM holds US companies that lend money for property or own mortgage bonds.

It charges 0.13% a year, about $13 on $10,000, against $48 for REM. It held 139 stocks, against 30 for REM.

From May 2007 to October 2026, VNQ returned about 5.1% a year and REM lost about 2.2% a year. Over about the last five years they often moved together, but not always (correlation 0.73).

Read the VNQ fund page for its returns by year and worst drop.

IYR: iShares U.S. Real Estate ETF#

IYR is a looser match. It holds US real estate investment trusts (REITs), companies that own and rent out property, while REM holds US companies that lend money for property or own mortgage bonds.

It charges 0.37% a year, about $37 on $10,000, against $48 for REM. It held 58 stocks, against 30 for REM.

From May 2007 to October 2026, IYR returned about 4.3% a year and REM lost about 2.2% a year. Over about the last five years they often moved together, but not always (correlation 0.73).

Read the IYR fund page for its returns by year and worst drop.

SCHH: Schwab U.S. REIT ETF#

SCHH is a looser match. It holds US real estate investment trusts (REITs), companies that own and rent out property, while REM holds US companies that lend money for property or own mortgage bonds.

It charges 0.07% a year, about $7 on $10,000, against $48 for REM. It held 117 stocks, against 30 for REM.

From January 2011 to October 2026, SCHH returned about 6.6% a year and REM returned about 2.0% a year. Over about the last five years they often moved together, but not always (correlation 0.72).

Read the SCHH fund page for its returns by year and worst drop.

XLRE: State Street Real Estate Select Sector SPDR ETF#

XLRE is a looser match. It holds US real estate investment trusts (REITs), companies that own and rent out property, while REM holds US companies that lend money for property or own mortgage bonds.

It charges 0.08% a year, about $8 on $10,000, against $48 for REM. It held 30 stocks, against 30 for REM.

From October 2015 to October 2026, XLRE returned about 6.7% a year and REM returned about 1.2% a year. Over about the last five years they often moved together, but not always (correlation 0.70).

Read the XLRE fund page for its returns by year and worst drop.

REM versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to REM from each other company on this page:

• Vanguard: VNQ, Vanguard Real Estate ETF (related fund, 0.13% a year)
• Schwab: SCHH, Schwab U.S. REIT ETF (related fund, 0.07% a year)
• SPDR (State Street): XLRE, State Street Real Estate Select Sector SPDR ETF (related fund, 0.08% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between REM and its alternatives#

• What it tracks. A fund on the same index holds the same stocks. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, REM costs about $48 a year. SCHH costs about $7.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping REM to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as VNQ, IYR or SCHH, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test REM and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add REM and VNQ, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as REM. Then come funds that hold the same kind of stocks through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like REM over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with REM only on days both traded. Read what a backtest simulates for more on these measures.