What is a real estate investment trust (REIT) index fund?

@tess.kassulke 

A real estate investment trust (REIT) index fund is a type of index fund that tracks the performance of a specific index representing the real estate investment trust (REIT) sector. REITs are companies that own, operate, or finance income-generating properties, such as residential or commercial real estate.

REIT index funds provide investors with exposure to a diversified portfolio of REITs, allowing them to invest in the real estate sector without directly owning individual properties. These funds typically include a range of REITs representing different property types and geographic locations.

The performance of a REIT index fund is correlated to the performance of the underlying index it tracks. Investors can buy shares of the index fund, which represent a proportional ownership in the REITs held within the fund. These funds provide a way for both individual and institutional investors to gain exposure to real estate through a passively managed investment vehicle.