RWX vs. ICF: One REIT ETF Stays Home, the Other Takes Your Real Estate Portfolio Global

Core Viewpoint - The State Street SPDR Dow Jones International Real Estate ETF (RWX) and the iShares Select U.S. REIT ETF (ICF) offer different investment strategies in real estate, appealing to various investor preferences based on region, cost, yield, and portfolio concentration [1][2]. Cost & Size Comparison - RWX has an expense ratio of 0.59% and AUM of $310.5 million, while ICF has a lower expense ratio of 0.32% and AUM of $2.1 billion [3]. - The 1-year return for RWX is 18.6%, significantly higher than ICF's 7.36%, and RWX offers a dividend yield of 3.6% compared to ICF's 2.7% [3][4]. Performance & Risk Comparison - Over the past five years, RWX experienced a maximum drawdown of -35.92%, while ICF had a slightly lower drawdown of -34.75% [5]. - An investment of $1,000 in RWX would have grown to $797, whereas the same investment in ICF would have grown to $1,117 over five years [5]. Portfolio Composition - ICF consists of around 30 U.S. REITs, focusing on major companies like Equinix, Welltower, and American Tower, reflecting a concentrated approach to the U.S. real estate market [6]. - RWX provides broader diversification with investments in 144 companies globally, including major holdings like Mitsui Fudosan and Swiss Prime Site, and includes allocations to cash and other securities for added stability [7]. Implications for Investors - REITs, including RWX and ICF, are required to distribute at least 90% of taxable income as dividends, making them attractive for income-seeking investors and serving as a portfolio diversifier due to their independent movement from stocks and bonds [9].