HAUZ vs. VNQI: How Do These Two Real Estate ETFs Compare on Yield, Cost, and Performance?

Core Insights - The Vanguard Global ex-U.S. Real Estate ETF (VNQI) and Xtrackers International Real Estate ETF (HAUZ) both provide exposure to international real estate, with HAUZ having a slight advantage due to lower fees, higher recent returns, and a more concentrated sector focus [1][2]. Cost and Size Comparison - VNQI has an expense ratio of 0.12% while HAUZ is slightly lower at 0.10% - The one-year return for VNQI is 11.7% compared to HAUZ's 13.4% - VNQI offers a higher dividend yield of 4.6% versus HAUZ's 4.4% - VNQI has an AUM of $4.2 billion, significantly larger than HAUZ's $1.0 billion [3][4]. Performance and Risk Comparison - Over the past five years, VNQI experienced a maximum drawdown of -35.76%, while HAUZ had a slightly lower drawdown of -34.53% - The growth of $1,000 invested over five years would result in $817 for VNQI and $850 for HAUZ [5]. Portfolio Composition - HAUZ targets the iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index, resulting in a concentrated portfolio with 96% real estate exposure and 412 holdings - VNQI has a broader approach with 682 holdings, 80% real estate exposure, and a higher allocation to cash and other assets (16%) [6][7]. Investment Implications - Both VNQI and HAUZ are viable options for investors looking to enhance their exposure to the real estate sector, with distinct differences in fees, performance, and portfolio structure [9].