REET vs. RWR: Which Real Estate ETF Is the Better Buy?

Real estate investment trusts (REITs) let investors tap into property markets -- from apartment buildings to data centers -- without ever having to fix a leaky roof themselves. Two popular ETFs, the iShares Global REIT ETF (REET +1.19%) and the State Street SPDR Dow Jones REIT ETF (RWR +1.50%) offer different ways to get that exposure. The core difference comes down to geography: REET casts a wide net across developed and emerging real estate markets around the world, while RWR stays entirely focused on the U.S.

Snapshot (cost & size)

| Metric | REET | RWR | | --- | --- | --- | | Issuer | iShares | State Street | | Expense ratio | 0.14% | 0.25% | | 1-year return (as of July 3, 2026) | 16.24% | 22.51% | | Dividend yield | 3.37% | 3.39% | | Beta | 0.99 | 1.01 | | AUM | $4.8 billion | $1.8 billion |

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

REET is the cheaper option, charging a 0.14% expense ratio compared to RWR’s 0.25%. That gap may look small on paper, but it can add up over years of compounding. Looking at dividend yields, the two funds are nearly identical.

Performance & risk comparison

| Metric | REET | RWR | | --- | --- | --- | | Max drawdown (5 yr) | (32.06%) | (32.56%) | | Growth of $1,000 over 5 years (total return) | $1,174 | $1,306 |

What's inside

Launched in 2001, RWR tracks the Dow Jones U.S. Select REIT Capped Index and holds 98 positions, all of which are domestic. Its biggest holdings include Prologis (PLD +1.72%) at 10.0%, Welltower (WELL +2.41%) at 9.3%, and Simon Property Group (SPG +1.37%) at 4.5%.

REET, by contrast, tracks the FTSE EPRA/NAREIT Global REIT Index and spreads its bets across 319 holdings in developed and emerging markets worldwide. Its largest positions include Welltower Inc at 7.9%, Prologis at 7.5%, and Equinix (EQIX 1.05%) at 5.8% -- meaning U.S. real estate giants still make up a meaningful chunk of this global fund. REET was launched in 2014.

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What this means for investors

The gap between these two funds really comes down to geography.

RWR's U.S.-only approach has recently outpaced REET on both a one-year and five-year basis, reflecting the relative strength of the domestic property market compared with real estate abroad. That's not unusual -- U.S. REITs have generally benefited from a resilient domestic economy and surging demand for data centers and industrial warehouses. International real estate markets, particularly in Europe and parts of Asia, have faced slower growth and currency headwinds that have weighed on returns.

That said, choosing the right REIT ETF depends at least somewhat on what an investor already owns -- many U.S. portfolios are already overweighted towards domestic stocks, bonds, and U.S. real estate, whether through a total-market index fund or a fund like RWR itself. Layering on more U.S.-only real estate exposure means doubling down on that existing concentration. Adding REET instead means reaching for something many portfolios are missing: direct exposure to property markets in Europe, Asia, and emerging economies, which tend to move on a different cycle than U.S. real estate.

Investors who want concentrated exposure to U.S. commercial real estate and are comfortable with a slightly higher fee may lean toward RWR, especially after its recent run of stronger returns. REET, on the other hand, is the more interesting option for cost-conscious investors who want true diversification away from U.S.-centric portfolios.