Global Real Estate ETFs: A Contrarian’s Guide

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So, you’re thinking about global real estate ETFs, huh? Let me guess-your portfolio’s been crying out for diversification. Or maybe you just want to feel like you’re doing something other than buying the same old S&P 500. Either way, here we are: staring at two funds that are basically twins, dressed in slightly different suits. VNQI and HAUZ. Both claim to offer exposure to real estate outside the U.S. Both are, in their own way, slightly less exciting than a spreadsheet of your own taxes. But let’s not pretend we’re not here for the drama.

Snapshot (cost & size)

Metric HAUZ VNQI
Issuer Xtrackers Vanguard
Expense ratio 0.10% 0.12%
1-yr return (as of Jan. 8, 2026) 21.27% 19.63%
Dividend yield 4.34% 4.58%
*Beta 0.73 0.71
AUM $951.9 million $3.53 billion

*Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

Both funds have very similar metrics, with HAUZ having slightly lower investor expenses. But VNQI does edge out HAUZ in terms of dividend yield. Which is like saying a chocolate cake is slightly better than a vanilla one. They’re both desserts. You’re still eating a dessert.

Performance & risk comparison

Metric HAUZ VNQI
Max drawdown (5 y) -34.54% -35.76%
Growth of $1,000 over 5 years $891 $876

Look, if you’re investing in global real estate, you’re already gambling on a roll of the dice. These numbers? They’re just the dice. HAUZ had a slightly better year, but VNQI? It’s the one that’s been around longer. Like a friend who’s been through more heartbreak but still shows up with a bottle of wine. Not sure if that’s a plus or a minus.

What’s inside

VNQI focuses on global real estate, excluding the U.S., holding 742 assets as of Jan. 8, 2025. Top holdings include Goodman Group (ASX:GMG.AX), Mitsui Fudosan Co., Ltd. (JPX:8801.T), and Mitsubishi Estate Co., Ltd. (JPX:8802.T). The fund has been in existence for nearly 15 years and is the largest global real estate ETF in terms of total assets, trailing only the iShares Global REIT ETF (REET +0.00%).

HAUZ has a very similar makeup to VNQI. However, the HAUZ is three years younger and excludes companies from Pakistan and Vietnam, along with the U.S., contributing to the fund having nearly 300 fewer total holdings than VNQI. Which is like saying, “I don’t want to eat the same food as my cousin.” Fine. But why?

What this means for investors

With very similar metrics and performance, either ETF is an ideal option for those who are looking to invest in global real estate. However, one of the biggest things investors should be aware of is the payout frequency of each of these ETFs.

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The most common payout frequency for dividends across all assets is quarterly. But with HAUZ, dividends have been historically paid out semiannually, resulting in only two dividend payments per year. And with VNQI, the fund switched from quarterly to annual payments in 2023. The benefit of less frequent paid dividends is that investors receive a larger lump sum payment, which should be higher than the typical quarterly payment within the sector. For those who’d rather invest in global real estate ETFs with quarterly dividend payouts, they can search for similar ETFs such as the SPDR Dow Jones Global Real Estate ETF (RWO +0.07%) and REET.

Glossary

ETF: Exchange-traded fund, a security that tracks an index or sector and trades like a stock.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its price.
Expense ratio: Annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Beta: A measure of an investment’s volatility compared to the overall market, usually the S&P 500.
AUM: Assets under management; the total market value of assets a fund manages.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a period.
Ex-dividend: The date after which new buyers of a fund or stock are not entitled to the next dividend payment.
Pure-play: A fund or company focused almost entirely on a single industry or sector.
Sector allocation: The percentage of a fund’s assets invested in different industry sectors.
Tracking: How closely a fund follows the performance of its target index.
Liquidity: How easily an asset or fund can be bought or sold without affecting its price.
Total return: The investment’s price change plus all dividends and distributions, assuming those payouts are reinvested.

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

Just remember: even the most well-researched investments are a gamble. And if you’re not feeling the gamble, maybe stick to your couch and a Netflix subscription. 📉

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2026-01-10 22:19