Which Real Estate ETF Is the Better Buy: State Street’s XLRE or Northern Trust’s Global GQRE?
XLRE holds 30 S&P 500 real estate stocks with a 0.08% expense ratio, while GQRE spreads across 201 global holdings and yields 4.4% annually.
State Street’s XLRE and Northern Trust’s GQRE are two real estate ETFs with distinct approaches. XLRE is more affordable, with a lower expense ratio of 0.08%, and focuses on the largest U.S. real estate companies, holding 30 positions. Its top holdings include Welltower, Prologis, and Equinix. The fund provides a yield of 3.4% on its $42.6 share price.
On the other hand, GQRE offers broader global diversification and a higher yield of 4.4%, but at a higher expense ratio of 0.46%. It allocates 99% to real estate and 1% to consumer cyclicals, with top holdings like Prologis, Welltower, and Equinix. GQRE’s quality-screening process selects real estate companies based on value, momentum, and profitability, incorporating international exposure not found in XLRE.
Given these differences, investors seeking low-cost U.S. REIT exposure may prefer XLRE, while those favoring income and global diversification might opt for GQRE.
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