REET vs. HAUZ: One Fund Anchors in U.S. REITs, the Other Invests Entirely Abroad

Core Insights - The iShares Global REIT ETF (REET) and Xtrackers International Real Estate ETF (HAUZ) differ primarily in geographic exposure, with HAUZ focusing on non-U.S. real estate and REET providing broader global diversification including the U.S. [1][2] - HAUZ has a lower expense ratio and higher dividend yield compared to REET, making it more appealing for income-focused investors [4]. Cost & Size Comparison - REET has an expense ratio of 0.14% and AUM of $4.8 billion, while HAUZ has a lower expense ratio of 0.10% and AUM of $1.1 billion [3]. - The 1-year return for REET is 10.8%, whereas HAUZ has a significantly higher return of 19.6% [3]. Performance & Risk Comparison - Over the past five years, REET experienced a max drawdown of 32.14%, while HAUZ had a slightly higher drawdown of 34.53% [5]. - The growth of $1,000 over five years is $1,004 for REET and $850 for HAUZ, indicating better performance for REET in terms of capital growth [5]. Portfolio Composition - HAUZ invests in 445 securities, primarily in developed and emerging markets outside the U.S., with 96% of its portfolio in real estate [6]. - REET, on the other hand, has 364 holdings and allocates 100% to real estate, with significant exposure to U.S. markets [7]. Investment Implications - Both REET and HAUZ provide broad real estate exposure but define "global" differently, catering to different investor preferences [8].