XLRE Keeps Real Estate Costs Low While RWO Adds Global Reach
The Real Estate Select Sector SPDR Fund (XLRE) gives investors a cheaper way to own the S&P 500 real estate sector, while the SPDR Dow Jones Global Real Estate ETF (RWO) reaches beyond the U.S. market. For investors comparing the two, the bigger question is how much global real estate exposure you are looking for.
Overview
Comparing State Street Real Estate Select Sector SPDR ETF (NYSEMKT:XLRE) and State Street SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO) reveals a choice between broad global diversification and low-cost, concentrated domestic exposure.
Real estate investment trusts (REITs) can provide income and may benefit from rent growth over time, but they remain sensitive to interest rates, financing costs, and property cycles. While XLRE targets the largest U.S. firms within the S&P 500, RWO provides a global footprint by including international and emerging markets. Both funds come from State Street, yet they serve different strategic roles in a portfolio.
Details
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. 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.