Which Real Estate ETF Is the Better Buy: Vanguard's VNQ or State Street's RWO?
VNQ charges 0.13% versus RWO's 0.50%, but RWO offers more global holdings. Which trade-off suits your portfolio?
Overview
The Vanguard Real Estate ETF (NYSEMKT:VNQ) offers a low-cost, U.S.-focused real estate portfolio, whereas State Street SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO) provides broader international exposure with higher management fees.
Real estate investment trusts (REITs) offer a convenient way to gain exposure to various property markets without the logistical challenges of direct property management. While both of these funds target the broader real estate sector, they differ significantly in geographical scope, cost structure, and the total number of underlying positions they manage. This analysis examines how a domestic-heavy fund compares to a global alternative for investors seeking diversification.
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.