Once considered a vital “return enhancer” in almost every portfolio, real estate as an asset class has fallen out of favor with investors following its spectacular collapse during (and role in causing) the recent global economic downturn. Real estate was historically embraced because of its potential for delivering excess returns in bull property markets and low correlation with traditional stock and bond investments. But as default rates skyrocketed, values plummeted, and correlations went to 1.0, asset managers have sold off real property and reallocated investor portfolios to equities and fixed income.

Despite its fall from grace, real estate is beginning to creep back into portfolios, as investors regain their appetite for risky assets. Real estate ETFs have seen cash inflows of more than $3 billion year-to-date, reflecting perhaps a preference for achieving diversified exposure within this asset class instead of concentrating assets in a few REITs. For investors looking to make a play on real estate through ETFs, there are several options offering different levels of risk, current income, and exposure to sectors of the market.