Global REIT ETFs: A Tale of Two Funds

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The iShares Global REIT ETF (REET +0.42%) and the SPDR Dow Jones International Real Estate ETF (RWX +0.11%) stand as two travelers on the same road, yet their paths diverge in the landscape of geography and cost. REET, with its expansive horizon, offers a broader vista of both American and international real estate, while RWX, more narrowly focused, charts a course through foreign territories.

Both funds traverse the realm of real estate equities, yet REET’s portfolio spans continents, whereas RWX’s gaze remains fixed beyond the United States. For the investor, these distinctions may evoke a quiet contemplation of the costs, the performances, and the unique terrains each fund unveils to the real estate enthusiast.

Snapshot (cost & size)

Metric REET RWX
Issuer IShares SPDR
Expense ratio 0.14% 0.59%
1-year return (as of 2025-12-22) 7.6% 25.5%
Dividend yield 3.71% 3.36%
Beta 1.09 0.82
AUM $4.0 billion $295.7 million

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The one-year return represents total return over the trailing 12 months.

RWX, with its higher toll, demands a greater share of the investor’s wealth, charging 0.59% annually compared to REET’s modest 0.14%. Its dividend, though slighter, flows with a quiet persistence. Over time, this difference may accumulate like sediment in a riverbed, shaping the investor’s journey.

Performance & risk comparison

Metric REET RWX
Max drawdown (5 y) -32.1% -35.9%
Growth of $1,000 over 5 years $1,254 $1,032

What’s inside

RWX, a traveler bound for foreign lands, traces the contours of real estate beyond the United States. Its holdings, numbering 119, include the estates of Mitsui Fudosan Co. Ltd., Scentre Group, and Swiss Prime Site Reg. Launched 19 years ago, it offers a passport to global diversification, though its route is not without its own challenges.

REET, in contrast, surveys a broader expanse, its 326 holdings weaving a tapestry of both American and international properties. Its largest holdings-Welltower Inc., Prologis REIT Inc., and Equinix REIT Inc.-stand as landmarks in this vast terrain. This diversity may appeal to those seeking a more representative global portfolio.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investors

Since 2014, REET has carried its investors through a landscape of steady growth, yielding 3.8% annually compared to RWX’s meager 0.7%. Beyond this, REET’s advantages are manifold: its expense ratio, a quarter of its rival’s; its dividend, slightly higher and growing more steadily; its holdings, thrice as numerous; its assets, vastly larger. Yet, REET’s 70% allocation to U.S. REITs may leave it less “global” than advertised.

RWX, though smaller, offers a more international flavor, with nearly a third of its holdings in Japan and another 30% in the United Kingdom, Australia, and Singapore. For investors seeking exposure to these regions, it may serve as a more faithful guide. However, its narrower focus may also limit its appeal to those desiring a broader scope.

In the end, the choice between these two funds mirrors the eternal tension between legacy and innovation, between the familiar and the uncharted. One may find solace in REET’s breadth, while another may prefer RWX’s narrower, more specialized path.

Glossary

Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund, expressed as a percentage of its current price.
Beta: A measure of a fund’s volatility relative to the overall market, typically the S&P 500.
AUM (Assets Under Management): The total market value of all assets managed by a fund.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Growth of $1,000 over 5 years: The ending value of a $1,000 investment after five years, including price changes and dividends.
Holdings: The individual securities or assets owned by a fund.
Cash exposure: The portion of a fund’s assets held in cash or cash equivalents, not invested in securities.
Real estate equities: Stocks of companies that own, operate, or finance income-producing real estate.
REIT (Real Estate Investment Trust): A company that owns or finances income-producing real estate and distributes most income to shareholders.
Drawdown: The decline in value from a fund’s highest point to its subsequent lowest point.
Issuer: The company or entity that creates and manages an ETF or mutual fund.

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2025-12-22 21:43