iShares REET vs FlexShares GQRE: Which REIT Fund Wins?
iShares offers superior liquidity and lower costs, while FlexShares delivers higher income with a 4.2% yield. Performance favors iShares over the past year.
Investors may find themselves deciding between the iShares Global REIT ETF (REET) and the FlexShares Global Quality Real Estate Index Fund (GQRE) when seeking exposure to global real estate markets. Each fund offers a distinct approach to diversifying a portfolio outside of traditional equities and fixed income.
The iShares Global REIT ETF stands out with its superior liquidity and lower cost, making it an appealing option for investors looking to minimize expenses and easily enter and exit positions. On the other hand, the FlexShares Global Quality Real Estate Index Fund prides itself on a higher yield, which could be enticing for those seeking a stronger income stream from their investments.
Both funds provide a means for investors to spread their risk across various global real estate markets, presenting an alternative to conventional stock and bond investments. By examining the underlying indexes, liquidity profiles, and historical volatility of these funds, investors can make an informed decision on which option best aligns with their specific income or growth objectives.
An essential metric for evaluating a fund's performance is beta, which measures price volatility relative to the S&P 500. This value is derived from monthly returns over the available fund history, typically spanning up to five years. The 1-year return indicates the total return achieved by the fund over the trailing 12-month period. Additionally, the dividend yield represents the trailing-12-month distribution yield, offering insight into the income potential of each fund.
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