RWR vs. XLRE: Which Real Estate ETF Is the Better Buy?
RWR offers broader diversification, while XLRE's more concentrated portfolio charges lower fees.
Overview
Both of these funds provide investors with exposure to the property market without the hassle of buying physical real estate. But while the State Street Real Estate Select Sector SPDR ETF (NYSEMKT:XLRE) limits its scope to real estate companies within the S&P 500, the State Street SPDR Dow Jones REIT ETF (NYSEMKT:RWR) casts a wider net across the broader domestic REIT landscape -- resulting in a more diversified, but pricier, portfolio.
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-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Investors pay a premium for RWR's broader reach: its 0.25% expense ratio is roughly three times XLRE's 0.08% fee. RWR has also delivered the stronger return over the last 12 months and pays a slightly higher dividend yield than XLRE.
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Source
Originally published at www.fool.com.