Which U.S. Real Estate ETF Is the Better Buy: Vanguard's VNQ or State Street's RWR?
Both funds own the same blue chip REITs, but their differences in cost, structure, and recent performance make this an interesting choice.
Overview
Vanguard Real Estate ETF (NYSEMKT:VNQ) offers a lower-cost entry into the domestic property market, while State Street SPDR Dow Jones REIT ETF (NYSEMKT:RWR) provides a more concentrated portfolio with stronger recent returns.
Investors seeking exposure to Real Estate Investment Trusts (REITs) often weigh these two heavyweight funds for their consistent income potential and exposure to hard assets. While both aim for total return through property-focused equities, the differing expense structures and portfolio depths of these funds may appeal to different types of yield-seeking investors looking to diversify a portfolio beyond traditional stocks and bonds without owning physical properties.
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.