XLRE vs VNQI: Domestic Large-Cap Stability or International 5% Yield
XLRE has outperformed over five years with lower costs, while VNQI's 5.1% dividend yield and exposure to 30+ countries appeal to income-focused investors seeking geographic diversification.
The State Street Real Estate Select Sector SPDR ETF (XLRE) and the Vanguard Global ex-U.S. Real Estate ETF (VNQI) offer investors two distinct approaches to real estate exposure. XLRE focuses on domestic large-cap U.S. real estate holdings, providing a concentrated portfolio with 30 positions, including well-known companies such as Welltower, Prologis, and Equinix.
The fund boasts a lower expense ratio of 0.08% and has paid a yield of 3.4% over the trailing 12 months. On the other hand, VNQI provides broader international diversification, holding over 700 holdings across more than 30 countries. This fund tracks the S&P Global ex-U.S. Property Index and has a higher yield of 5.1% over the trailing 12 months.
While XLRE may be more attractive for those seeking domestic stability and a lower expense ratio, VNQI's international exposure and higher yield could be more appealing to investors prioritizing income and diversification.
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