While iShares Global REIT ETF (NYSEMKT:REET) provides broad exposure to real estate markets worldwide, including the United States, Xtrackers International Real Estate ETF (NYSEMKT:HAUZ) limits its scope to international property markets with a lower fee. Real estate investment trust (REIT) ETFs offer a simplified way for investors to gain exposure to income-producing properties like warehouses, apartments, and cell towers. REET serves as a one-stop global shop, whereas HAUZ targets investors who specifically want to diversify away from domestic U.S. real estate holdings.
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.
HAUZ is the more affordable option with a 0.1% expense ratio, while the iShares fund carries a slightly higher 0.14% fee. HAUZ also provides a higher payout with a 3.6% yield compared to 3.3% for the iShares fund. Growth of $1,000 over 5 years (total return) REET focuses its portfolio entirely on real estate, with a negligible allocation to financial services.
The global mandate of the iShares fund provides exposure to the world's largest REIT market in the U.S. while maintaining a significant presence in international territories. It holds 318 positions, and its largest positions include Welltower at 8.83%, Prologis at 7.22%, and Equinix at 5.71%. The fund was launched in 2014.
REET has paid $0.93 per share over the trailing 12 months, which, on its recent ~$28 share price, works out to a 3.3% yield. HAUZ tracks the iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index, allocating 96% to real estate with minor positions in industrials and communication services. This international focus helps investors offset domestic concentration while capturing growth in developed European and Asian property markets.
It holds 415 positions, and its top holdings include Goodman Group at 4.82%, Mitsubishi Estate at 3.15%, and Mitsui Fudosan at 2.77%. The fund was launched in 2013. HAUZ has paid $0.82 per share over the trailing 12 months, which, on its recent ~$23 share price, works out to a 3.6% yield.
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