XLRE vs. RWO: Which Real Estate ETF Offers Better Value
One fund targets U.S. large-caps with a 0.08% fee, while the other spans 224 global stocks with a fee of 0.5%. Both yield 3.5%, but their performance and risk profiles diverge.
Overview
State Street Real Estate Select Sector SPDR ETF (NYSEMKT:XLRE) focuses on U.S. large-cap property stocks with a low 0.08% expense ratio, while State Street SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO) offers a global portfolio for a higher fee of 0.50%.
Real estate investment trusts (REITs) and property companies offer a way to generate income and capture growth without the headaches of direct property management. These two funds provide different lenses on the sector: one focuses strictly on U.S. giants while the other captures the global real estate landscape.
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.
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