RWR Owns U.S. REITs. HAUZ Owns Real Estate Across the Globe -- and Charges Less for It.

The State Street SPDR Dow Jones REIT ETF (NYSEMKT:RWR) and Xtrackers International Real Estate ETF (NYSEMKT:HAUZ) disagree astir successful their geographic exposure, cost, and caller performance, with HAUZ delivering stronger one-year returns and a higher yield, but lagging successful five-year growth.

Both RWR and HAUZ purpose to supply wide existent property exposure, but their approaches acceptable them apart: RWR concentrates connected U.S. existent property concern trusts (REITs), portion HAUZ captures a overmuch wider beingness of planetary existent property equities. This examination looks astatine cost, returns, risk, liquidity, and portfolio constitution to assistance investors determine which whitethorn amended acceptable their needs.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

HAUZ stands retired arsenic the much affordable enactment with a little disbursal ratio, and it besides offers a higher dividend yield, which could entreaty to cost-conscious investors seeking stronger income potential.

HAUZ tracks a globally diversified existent property index, investing successful 445 companies crossed developed and emerging markets extracurricular the U.S. The money is dominated by existent property (96%), with insignificant allocations to industrials and connection services. Its largest holdings see Goodman, Mitsubishi, and Mitsui Fudosan. At 12 years old, HAUZ offers important breadth for planetary existent property exposure.

By contrast, RWR focuses astir exclusively connected U.S. REITs, with 98% successful existent property and 1% successful currency oregon different assets. Its apical holdings are Welltower (NYSE:WELL), Prologis (NYSE:PLD), and Equinix (NASDAQ:EQIX), which gives it a concentrated tilt toward U.S. commercialized property. RWR holds less companies, making it little diversified geographically and by fig of holdings than HAUZ.

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Real property concern trusts (REITs) are companies required by instrumentality to administer astatine slightest 90% of their taxable income arsenic dividends, making them a accordant income source. RWR is simply a axenic U.S. REIT fund, holding astir 100 home REITs spanning industrial, healthcare, residential, and retail properties. Every institution successful the portfolio carries that mandatory income-distribution structure.