Which Global Real Estate ETF Is the Better Buy: State Street’s RWO or Vanguard’s International VNQI?

Resumen detallado

One fund mixes U.S. and international property. The other focuses only on real estate outside the United States for much less. Here is how to choose.

State Street SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO) provides broad global exposure including the United States, while Vanguard Global ex-U.S. Real Estate ETF (NASDAQ:VNQI) targets international property markets exclusively with much lower fees.

Real estate investors often choose between global breadth and regional specificity. These two funds offer distinct approaches to international property exposure. While the State Street fund mixes domestic and international assets, the Vanguard fund focuses purely on diversification outside the United States.

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.

The Vanguard fund is the more affordable option with a 0.12% expense ratio, compared to 0.5% for the State Street fund. Vanguard also offers a higher payout, with a 1.6 percentage point lead in yield.

State Street SPDR Dow Jones Global Real Estate ETF allocates 90% to real estate, with 7% in cash and other assets. It holds 223 assets, and its largest positions include Welltower (NYSE:WELL) at 10.22%, Prologis (NYSE:PLD) at 7.40%, and Equinix (NASDAQ:EQIX) at 6.22%. It was launched in 2008. The State Street fund has paid $1.63 per share over the trailing 12 months, which on its recent ~$48.13 share price works out to a 3.4% yield.

Vanguard Global ex-U.S. Real Estate ETF holds 729 stocks, with a heavy 99% tilt toward real estate and 1% in industrials. Its top holdings include Goodman Group (ASX:GMG) at 3.82%, Mitsubishi Estate at 2.74%, and Mitsui Fudosan (TSE:8801) at 2.51%. It was launched in 2010. The Vanguard fund has paid $2.16 per share over the trailing 12 months, which on its recent ~$42.99 share price works out to a 5% yield.

For more guidance on ETF investing, check out the full guide at this link.

I'd go with VNQI. It gives you…

That…

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