REET vs. RWX: Which Global Real Estate ETF Is the Better Buy?

Core Insights - The State Street SPDR Dow Jones International Real Estate ETF (RWX) focuses on international real estate outside the U.S., while the iShares Global REIT ETF (REET) offers global real estate exposure at a lower cost and with broader diversification [1][2]. Cost and Size Comparison - RWX has an expense ratio of 0.59% and assets under management (AUM) of $310.5 million, whereas REET has a lower expense ratio of 0.14% and AUM of $4.8 billion [3][4]. - Both ETFs have a dividend yield of 3.4% [3]. Performance and Risk Comparison - Over the past five years, RWX experienced a maximum drawdown of -35.89%, while REET had a drawdown of -32.06% [5]. - An investment of $1,000 would have grown to $799 in RWX and $996 in REET over the same period [5]. Portfolio Composition - REET includes over 300 global real estate firms, with top holdings such as Welltower (8.5%), Prologis (7.2%), and Equinix (5.5%), providing diversified exposure across geographies and property types [6]. - RWX focuses on international real estate, with 29% of its assets in Japan and top holdings including Mitsui Fudosan Co (7.0%), Swiss Prime Site Reg (3.1%), and SEGRO Plc (3.0%) [7]. Investor Considerations - The choice between REET and RWX primarily depends on whether investors prefer global real estate exposure or exclusively international exposure without U.S. overlap [8]. - REET's lower expense ratio provides a significant advantage that compounds over time, making it a more attractive option for many investors [8][9].