A Battle of REIT ETFs: Which REIT ETF Offers Better Value for Income-Oriented Investors?
State Street's fund charges just 0.08% annually versus iShares' 0.32%, but performance and yield tell a more nuanced story.
Overview
State Street Real Estate Select Sector SPDR ETF (NYSEMKT:XLRE) provides low-cost exposure to the S&P 500 real estate sector, while iShares Select U.S. REIT ETF (NYSEMKT:ICF) offers a more seasoned portfolio with higher recent returns.
Real estate investment trusts often serve as a pillar for income and diversification. This comparison looks at two different ways to access the asset class: the State Street fund captures the real estate components of the primary S&P 500 index, whereas the iShares fund tracks a specific group of U.S. REITs selected for their size and market prominence. Both portfolios are relatively concentrated, yet they differ in their cost structures and selection criteria. This analysis examines their costs, historical risk metrics, and the underlying holdings that drive their performance.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source
Originally published at www.fool.com.