REET vs RWR: Global Versus U.S. REIT ETF Which Is Better
Key PointsiShares Global REIT ETF offers lower fees and broader international exposure than State Street SPDR Dow Jones REIT ETF.
When considering the iShares Global REIT ETF (REET) and the State Street SPDR Dow Jones REIT ETF (RWR), investors should weigh several key factors. REET offers global diversification, with approximately three-quarters of its holdings located outside the United States. In contrast, RWR is a concentrated U.S. real estate exposure fund, holding only domestic properties.
Both funds have demonstrated similar 1-year returns, with REET generating 8% and RWR generating 15% since 2021, though RWR boasts a slightly higher compound annual growth rate (CAGR) of 2.8% compared to REET's 1.5%. In terms of income, both funds provide an identical dividend yield of 3.4%. Additionally, cost is an important consideration, as REET carries a lower expense ratio of 0.14%, while RWR's expense ratio is higher at 0.25%.
Therefore, when deciding between these two funds, investors must balance the benefits of global diversification against stronger recent performance, while also accounting for the varying costs associated with each investment option.
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