REET vs. RWR: Which Real Estate ETF Is the Better Buy?
REET offers global diversification at lower cost, while RWR delivers U.S. real estate exposure and stronger returns.
Overview
Real estate investment trusts (REITs) let investors tap into property markets -- from apartment buildings to data centers -- without ever having to fix a leaky roof themselves. Two popular ETFs, the iShares Global REIT ETF (NYSEMKT:REET) and the State Street SPDR Dow Jones REIT ETF (NYSEMKT:RWR) offer different ways to get that exposure. The core difference comes down to geography: REET casts a wide net across developed and emerging real estate markets around the world, while RWR stays entirely focused on the U.S.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Details
REET is the cheaper option, charging a 0.14% expense ratio compared to RWR’s 0.25%. That gap may look small on paper, but it can add up over years of compounding. Looking at dividend yields, the two funds are nearly identical.
Source
Originally published at www.fool.com.