Real Estate ETFs: REET Has Broader Diversification, VNQ Boasts Higher Yield

Core Insights - Vanguard Real Estate ETF (VNQ) focuses on U.S. REITs with higher yield and larger assets under management, while iShares Global REIT ETF (REET) offers global diversification [1][2] Group 1: Cost and Size - VNQ has an expense ratio of 0.13%, slightly lower than REET's 0.14% [3][4] - As of March 16, 2026, VNQ's 1-year return is 1.3%, compared to REET's 6.5% [3] - VNQ has a dividend yield of 3.7%, marginally higher than REET's 3.5% [4] - VNQ's assets under management (AUM) stand at $69.6 billion, significantly larger than REET's $4.6 billion [3] Group 2: Performance and Risk - Over the past five years, VNQ experienced a maximum drawdown of -34.48%, while REET had a drawdown of -32.14% [5] - The growth of a $1,000 investment over five years is $1,003 for VNQ and $1,004 for REET, indicating similar performance [5] Group 3: Portfolio Composition - REET holds 325 securities across global developed and emerging real estate markets, providing broader diversification [6] - VNQ has 158 holdings, primarily in real estate, with some exposure to communication services and technology [7] - Both funds include top positions like Welltower Inc, Prologis Inc, and Equinix Inc, but VNQ is strictly focused on the U.S. market [7]