What are the best Education ETFs?
6 min read
By Beqa Bumbeishvili, ETF Insider

What are the best Education ETFs?

Discovering the best Education Exchange-Traded Funds (ETFs) can be a valuable endeavor for investors seeking exposure to the dynamic field of education. This article explores the top Education ETFs available in the market, highlighting their potential for growth, diversification, and long-term investment opportunities. Whether you're interested in supporting the future of education or looking to capitalize on its financial prospects, these ETFs offer a gateway to participate in this sector's growth.

Evaluating Education ETFs: A Comparison of EDU and XLRE

When it comes to investing in the education sector, exchange-traded funds (ETFs) can be an effective way to gain exposure to this industry. Two notable education ETFs that investors can consider are EDU and XLRE. EDU is the ticker symbol for the New Oriental Education & Technology Group Inc. ETF, while XLRE represents the Real Estate Select Sector SPDR Fund. Let's take a closer look at these two ETFs and compare their features.

EDU focuses on the education services industry, primarily in China. It aims to provide investors with returns that correspond to the performance of the Dow Jones New Oriental Education & Technology Group Index. This index includes companies that are involved in the provision of educational services, such as language training, test preparation, and private tutoring. With EDU, investors can gain exposure to the growing demand for education in China, a market that has seen significant expansion in recent years.

On the other hand, XLRE is not specifically an education-focused ETF but offers exposure to the real estate sector in the United States. However, it includes real estate investment trusts (REITs) that are involved in various segments, including education-related properties such as schools, universities, and educational centers. By investing in XLRE, investors can indirectly participate in the education sector within the broader context of the real estate market.

While EDU provides targeted exposure to the education services industry in China, XLRE offers a more diversified approach by including education-related real estate assets in the United States. The choice between the two ETFs depends on an investor's specific investment objectives and their outlook on the Chinese and U.S. education markets.

XLRE overlap What are the best Education ETFs?XLRE overlap What are the best Education ETFs?

Why Consider Investing in Education ETFs?

Investing in education ETFs can be an attractive option for several reasons. Firstly, the education sector is a fundamental pillar of any society, as it plays a vital role in shaping future generations and fostering economic growth. By investing in education-focused ETFs, investors can support the development of this crucial sector.

Secondly, the education industry has shown resilience and stability over time, regardless of economic cycles. People continue to seek education, whether it is for personal growth, skill enhancement, or career advancement. This consistent demand provides a potentially favorable investment opportunity.

Furthermore, investing in education ETFs can offer diversification benefits for an investor's portfolio. By including ETFs that cover various segments of the education industry, such as education services or education-related real estate, investors can spread their risk and potentially mitigate the impact of market fluctuations.

Considerations for Investing in Education ETFs

Before investing in education ETFs, it is essential to consider a few factors. Firstly, investors should conduct thorough research on the specific ETFs they are interested in, understanding their investment strategies, underlying holdings, and performance history. This research can provide insights into the ETF's potential risk and return characteristics.

Additionally, investors should evaluate the macroeconomic trends and regulatory environment affecting the education sector. Factors such as government policies, technological advancements, and demographic shifts can significantly impact the industry's growth potential and, consequently, the performance of education ETFs.

Investors should also assess the fees and expenses associated with the ETFs they consider. Expense ratios can vary among different ETFs, and lower expenses can translate into higher net returns for investors over the long term.


Investing in education ETFs can be an effective way to gain exposure to the education sector while achieving diversification in an investment portfolio. ETFs such as EDU and XLRE offer distinct approaches to investing in education, focusing on education services in China and education-related real estate in the United States, respectively. By conducting thorough research, understanding market trends, and considering individual investment objectives, investors can make informed decisions about including education ETFs in their portfolios.

Disclaimer: This article is for informational purposes only and is not providing any investment advisory services.

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  • What is the purpose of Education ETFs?

    Education ETFs are investment funds designed to track the performance of companies operating in the education sector. These ETFs provide exposure to companies involved in various aspects of education, including educational services, online learning platforms, textbook publishers, and more.

  • What are some popular Education ETFs available in the US?

    Some popular Education ETFs based in the US include the Global X MSCI China Education ETF (EDUT), the iShares Global Consumer Discretionary ETF (RXI), and the Invesco Dynamic Leisure and Entertainment ETF (PEJ).

  • How do Education ETFs work?

    Education ETFs work by pooling investors' money to invest in a diversified portfolio of education-related stocks. The ETFs aim to replicate the performance of a specific index or sector within the education industry, allowing investors to gain exposure to the sector as a whole.

  • What types of companies are typically included in Education ETFs?

    Education ETFs may include companies engaged in various educational activities, such as for-profit education providers, educational technology firms, publishing companies specializing in educational materials, and companies involved in educational content development.

  • What are the potential benefits of investing in Education ETFs?

    Investing in Education ETFs can provide investors with a diversified exposure to the education sector, allowing them to participate in the potential growth of the industry. These ETFs offer a convenient way to invest in a specific sector without the need to select individual stocks.