U.S. REIT Exposure or Global Real Estate Diversification? VNQ vs. RWX

Cost Comparison - Vanguard Real Estate ETF (VNQ) has a low expense ratio of 0.13%, while State Street SPDR Dow Jones International Real Estate ETF (RWX) has a higher expense ratio of 0.59% [1][4] - VNQ has assets under management (AUM) of $69.6 billion, significantly larger than RWX's AUM of $310.51 million [3][6] Performance Metrics - As of March 16, 2026, VNQ reported a 1-year return of 1.3%, while RWX had a much higher return of 13.4% [3] - VNQ's maximum drawdown over five years was -34.48%, compared to RWX's -35.92% [5] - An investment of $1,000 in VNQ would have grown to $1,003 over five years, while the same investment in RWX would have decreased to $797 [5] Portfolio Composition - VNQ focuses primarily on U.S. real estate, with 98% of its assets in this sector, and holds 158 stocks [7] - The top holdings in VNQ include Welltower Inc (8.81%), Prologis Inc (8.29%), and Equinix Inc (5.99%) [7] - RWX invests in international real estate companies, with 121 holdings, including Mitsui Fudosan Co Ltd (7.06%), Swiss Prime Site Reg (3.17%), and Scentre Group (2.91%) [6] Investment Strategy - VNQ targets the U.S. REIT market, influenced by domestic interest rates and property trends [9] - RWX invests in developed markets outside the U.S., such as Japan, Europe, and Australia, which exposes it to different currency changes and interest rate cycles [10]