Which Global Real Estate ETF Is the Better Buy: State Street’s RWO or Vanguard’s International VNQI?
One fund mixes U.S. and international property. The other focuses only on real estate outside the United States for much less. Here is how to choose.
When considering global real estate investment, two prominent ETFs emerge: State Street's RWO and Vanguard's VNQI. Both provide exposure to international property markets, but with distinct approaches and characteristics.
State Street's SPDR Dow Jones Global Real Estate ETF (RWO) offers a broader global exposure, encompassing both the United States and international markets. With an expense ratio of 0.5%, RWO's larger size and more diversified holdings may appeal to investors seeking a comprehensive real estate portfolio. The fund's largest positions include Welltower, Prologis, and Equinix, totaling $1.63 per share in dividends over the past year.
In contrast, Vanguard's Global ex-U.S. Real Estate ETF (VNQI) takes a more focused approach, concentrating on international property markets with a lower expense ratio of 0.12%. VNQI boasts a higher dividend yield of approximately 5%, potentially attracting income-focused investors. With 729 holdings across 30+ countries, VNQI provides broad diversification and an appealing yield, currently paying $2.16 per share in dividends annually.
While RWO's broader global reach may appeal to investors seeking U.S. and international properties, VNQI's focused strategy and higher yield could make it the more attractive choice for those prioritizing international exposure and income. Ultimately, the decision between RWO and VNQI depends on an investor's specific goals and risk tolerance.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
