Global vs U.S. REIT ETFs: Fees, Yield and Reach

A series of recent comparisons across major real estate exchange-traded funds (ETFs) shows a consistent theme: investors choosing between domestic U.S. real estate investment trusts (REITs) and globally diversified property funds face clear trade-offs in fees, yield, diversification, and recent performance.

Vanguard, iShares, State Street’s SPDR lineup, and Xtrackers all feature in these matchups, with funds such as VNQ, REET, RWR, RWX, ICF, VNQI, and HAUZ offering different paths to real estate exposure across U.S. and international markets.

Across the funds, expense ratios are generally low but vary meaningfully. Vanguard Real Estate ETF (VNQ) and iShares Global REIT ETF (REET) both sit near the bottom of the cost range at 0.13% and 0.14%, respectively, while SPDR Dow Jones REIT ETF (RWR) charges 0.25% and SPDR Dow Jones International Real Estate ETF (RWX) is higher at 0.59%.

Among international funds, Xtrackers International Real Estate ETF (HAUZ) is one of the lowest-cost options at 0.10%, undercutting Vanguard Global ex-U.S. Real Estate ETF (VNQI) at 0.12% and RWX at 0.59%. Within U.S. REITs, iShares Select U.S. REIT ETF (ICF) carries a higher 0.32% fee versus RWR’s 0.25%.

Dividend yields also differ. VNQ yields approximately 3.7% versus REET’s 3.5%. HAUZ yields 4.0% in one comparison, while VNQI stands at 4.6% and HAUZ at 4.4% in another. RWR’s yield is about 3.4%–3.5%, slightly ahead of ICF’s roughly 2.6%–2.7%, and close to RWX’s 3.6%.

One-year performance data highlight stronger recent returns from several internationally focused offerings. REET has returned 8.18% over the past year versus VNQ’s 1.3%. HAUZ shows a 19.6% one-year return compared with 9.6% for RWR, and 13.4% versus 11.7% for VNQI.

RWX has also outpaced some U.S. peers over 12 months, with an 18.6% return versus RWR’s 9.6% and ICF’s 7.36%. However, over five years, some U.S.-centric funds have held an edge. RWR’s $1,000 grew to $1,087–$1,091, while RWX’s reached $797 in two separate comparisons. HAUZ’s five-year growth of $850 lags VNQI’s $817 only slightly, and RWR trails ICF’s $1,117–$1,267 despite its higher yield.

Maximum drawdowns over five years have been broadly similar across funds, generally in the low- to mid-30% range, with VNQI and RWX showing somewhat deeper peak-to-trough declines than some U.S. REIT ETFs.

Geography is a key differentiator. VNQ and RWR focus on U.S. REITs, while REET combines U.S. and international REITs, and funds such as HAUZ, VNQI, and RWX concentrate on markets outside the United States.

REET holds 325 securities across developed and emerging markets, while VNQ owns 158 U.S. names with minor tilts to communication services and technology. HAUZ invests in over 400 companies outside the U.S., with about 96% in real estate, whereas VNQI owns 682 holdings with 80% in real estate and a notable cash and other assets allocation of about 16%.

State Street’s RWR holds roughly 100 U.S. REITs with minimal cash, giving it a pure-play domestic profile. RWX and VNQI include international real estate operating companies as well as REITs, introducing a mix of income-paying and reinvesting entities.

Portfolio concentration varies widely. ICF holds around 30 U.S. REITs and is heavily tilted toward large-cap names like Equinix, Welltower, and American Tower, with its top positions accounting for more than a quarter of assets. RWR, with nearly 100 holdings, spreads weightings more evenly across sectors such as industrial, healthcare, residential, and retail properties.

Internationally, RWX holds 144 companies and keeps around 15% in cash and other assets, while HAUZ remains more sector-focused with 96% in real estate and only small allocations to industrials and communication services. VNQI’s broader mix includes both real estate and financial services exposure.

Across both U.S. and global funds, major REITs such as Welltower, Prologis (PLD), and Equinix frequently appear as top holdings, though weighting and geographic emphasis differ by ETF.