Choosing Between HAUZ and REET: Which Real Estate ETF Fits Your Portfolio?

Performance Tells Different Stories

When it comes to real estate stocks exposure through ETFs, HAUZ and REET paint starkly different pictures. As of late December 2025, HAUZ delivered a 17.2% one-year return paired with a 3.91% dividend yield, while REET lagged at 3.6% return with a 3.7% yield. On the cost front, HAUZ edges ahead with a 0.10% expense ratio compared to REET’s 0.14%—a modest but meaningful difference on larger positions. The size advantage belongs to REET, commanding $4.04 billion in assets under management versus HAUZ’s $940.7 million, translating to deeper liquidity and tighter spreads for active traders.

Over a five-year horizon, however, the narrative shifts. REET transformed $1,000 into $1,053 while HAUZ saw that same dollar erode to $883, reflecting different volatility profiles and sector timing. HAUZ’s beta of 0.89 versus REET’s 0.96 suggests gentler price swings, though both experienced meaningful drawdowns during market stress—HAUZ at 34.53% and REET at 32.09%.

Inside the Holdings: Geographic Divergence

The real distinction between these real estate stocks vehicles lies beneath the surface. REET holds 328 positions but concentrates heavily in U.S.-domiciled REITs, with Welltower, Prologis, and Equinix commanding outsized weights. This U.S.-centric tilt means REET’s performance tracks closely with American commercial real estate dynamics, interest-rate sensitivity, and capital market sentiment toward domestic property.

HAUZ takes a markedly different approach. Its 408 holdings lean toward developed markets beyond the U.S., with substantial allocations to Japanese real estate stocks like Mitsui Fudosan and Mitsubishi Estate, Australian exposure through Goodman Group, and scattered European positions. This geographic spread means HAUZ moves to the rhythm of multiple property cycles operating on different schedules—when U.S. office REITs struggle, Australian or Japanese industrial property might be ascending.

What This Means for Your Real Estate Allocation

The choice between HAUZ and REET ultimately depends on how you want real estate stocks to function in your portfolio. REET works best for investors who view global real estate through a U.S. lens, benefiting from the scale and familiarity of mega-cap American REITs. You get proven dividend payers, institutional-grade liquidity, and exposure to logistics and data-center properties that dominate global real estate benchmarks.

HAUZ suits a different investor profile—those seeking real estate stocks exposure that isn’t solely beholden to U.S. interest-rate policy or American commercial real estate sentiment. By distributing capital across Japan, Australia, and Europe, HAUZ introduces portfolio diversification that responds to regional demand cycles, different regulatory environments, and property market conditions that don’t always move in lockstep with the U.S.

Both funds maintain clean structures with no leverage or currency hedging, keeping mechanics simple and transparent. Neither fund charges excessive fees, though HAUZ’s edge on expense ratios compounds over decades. The dividend yields sit close together, suggesting both funds effectively funnel real estate income to shareholders.

The Bottom Line

Real estate stocks investing via ETFs has grown more nuanced. REET remains the established choice for accessible, liquid exposure to the world’s largest REITs. HAUZ represents an alternative for those wanting real estate stocks exposure with a less U.S.-centric footprint. Your decision hinges on whether you want your real estate allocation moving primarily with U.S. property market cycles or benefiting from diversification across multiple regional real estate trends.