REET Offers Greater Scale Than GQRE

Core Insights - The iShares Global REIT ETF (REET) and FlexShares Global Quality Real Estate Index Fund (GQRE) provide global real estate exposure but differ significantly in cost, yield, and size [1] Cost & Size Comparison - REET has an expense ratio of 0.14%, while GQRE charges 0.45% [2] - As of March 16, 2026, REET's 1-year return is 12.30% compared to GQRE's 12.97% [2] - REET offers a dividend yield of 3.5%, whereas GQRE provides a higher yield of 4.5% [2] - REET has assets under management (AUM) of $4.6 billion, significantly larger than GQRE's $357 million [2] Performance & Risk Comparison - Over the past five years, REET experienced a maximum drawdown of -32.06%, while GQRE had a drawdown of -35.07% [4] - An investment of $1,000 in REET would have grown to $1,188, while the same investment in GQRE would have grown to $1,202 over five years [4] Portfolio Composition - GQRE holds approximately 174 securities, focusing solely on real estate companies, with major positions in American Tower, Prologis, and Welltower [5] - REET contains a broader selection of 325 global real estate stocks, with top holdings in Welltower, Prologis, and Equinix [6] - REET's larger AUM and focus on the real estate sector provide greater scale and liquidity, although both funds have overlapping top holdings [6] Investor Implications - Both REET and GQRE are considered solid options for real estate exposure in 2026, especially as interest rates stabilize [7] - REET's scale and diversification may appeal to investors prioritizing liquidity [7]