RWR vs. REET: Same Blue-Chip REIT Foundation, Different Geographic Strategies

The State Street SPDR Dow Jones REIT ETF (NYSEMKT:RWR) and iShares Global REIT ETF (NYSEMKT:REET) basal isolated connected cost, geographic exposure, and size -- RWR sticks to U.S. existent estate, portion REET brings planetary scope with a little interest and overmuch larger assets nether absorption (AUM).

Both RWR and REET people existent property concern trusts, but RWR zeroes successful connected the U.S. market, portion REET casts a wider nett crossed planetary developed and emerging markets. This examination highlights however their fees, yields, performance, and portfolio operation whitethorn entreaty to antithetic types of existent estate-focused investors.

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.

REET is much affordable connected fees, charging 0.14% compared to RWR’s 0.25%, and some funds presently present an identical dividend yield, making outgo the main differentiator for income-focused investors.

REET holds 364 securities and provides vulnerability to existent property companies from astir the globe, including some developed and emerging markets. Its largest positions are Welltower (NYSE:WELL), Prologis (NYSE:PLD), and Equinix (NASDAQ:EQIX), and the money has been operating for astir 12 years. This broader diversification whitethorn entreaty to investors seeking planetary existent property exposure.

RWR, successful contrast, focuses astir exclusively connected U.S. existent estate, with 98% of assets successful that assemblage and a 98-holding portfolio. Its apical positions -- Welltower (NYSE:WELL), Prologis (NYSE:PLD), and Equinix (NASDAQ:EQIX) -- overlap with REET but with somewhat larger weights. Neither money carries structural quirks oregon non-standard features, keeping their portfolios straightforward for existent property investors.

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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 earthy acceptable for income investors. Both RWR and REET are built connected the aforesaid foundation: their apical holdings of Welltower, Prologis, and American Tower are identical.

That shared halfway is worthy understanding. Welltower is the ascendant healthcare REIT, riding the demographic tailwind of an aging population. Prologis is the planetary logistics elephantine powering e-commerce warehouses and present expanding into information centers. American Tower operates telecom infrastructure crossed aggregate continents. Together they correspond the modern REIT, which is little astir accepted landlords, much astir secular growth.