Domestic REITs or International Real Estate? State Street's RWR and RWX Offer Very Different Answers.

Core Insights - The SPDR Dow Jones International Real Estate ETF (RWX) and SPDR Dow Jones REIT ETF (RWR) provide different approaches to real estate investment, with RWX focusing on international holdings and RWR on U.S. REITs [1][2] Cost and Size Comparison - RWX has an expense ratio of 0.59%, while RWR has a lower expense ratio of 0.25% - As of March 18, 2026, RWX reported a 1-year return of 18.6% compared to RWR's 9.6% - Both funds have similar dividend yields, with RWX at 3.6% and RWR at 3.5% - RWR has significantly larger assets under management (AUM) at $1.8 billion compared to RWX's $310.5 million [3][4] Performance and Risk Comparison - Over the past five years, RWX experienced a maximum drawdown of -35.92%, while RWR had a drawdown of -32.58% - An investment of $1,000 would have grown to $797 in RWX and $1,087 in RWR over the same period [5] Portfolio Composition - RWR holds around 100 U.S. REITs, with top holdings including Welltower, Prologis, and Equinix, making up over 24% of its assets - RWX invests in 144 international real estate companies, with major allocations to Mitsui Fudosan, Swiss Prime Site, and Scentre Group, and maintains a 15% position in cash and other assets [6][7] Implications for Investors - REITs are required to distribute at least 90% of taxable income as dividends, making them attractive for income-focused investors - RWR's focus on U.S. REITs spans various sectors, including industrial, healthcare, residential, and retail properties, ensuring compliance with income-distribution requirements [8]