VNQI vs RWX: Broad International Property Exposure or Regional Concentration
Key Points
VNQI is much larger and charges a lower fee, while RWX delivered a higher 1-year return as of Dec. 18, 2025
RWX holds fewer stocks and shows greater concentration in its top positions compared to VNQI
Both ETFs experienced similar five-year drawdowns, but VNQI offered a higher dividend yield
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Vanguard Global ex-U.S. Real Estate ETF (VNQI) is larger and more affordable, while SPDR Dow Jones International Real Estate ETF (RWX) saw stronger recent performance but comes with a higher fee and less diversification.
Both VNQI and RWX aim to give investors broad access to international real estate markets, excluding the U.S. While their mandates overlap, they differ in cost, portfolio makeup, and recent results, making the right fit dependent on investor priorities around yield, diversification, and expenses.
Snapshot (cost & size)
| Metric | VNQI | RWX |
|---|---|---|
| Issuer | Vanguard | SPDR |
| Expense ratio | 0.12% | 0.59% |
| 1-yr return (as of Dec. 18, 2025) | 15.9% | 21.8% |
| Dividend yield | 4.27% | 3.36% |
| Beta | 0.88 | 0.82 |
| AUM | $3.9 billion | $294.7 million |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
VNQI is more affordable on fees, with a 0.12% expense ratio compared to RWX’s 0.59%, and also offers a higher dividend yield—4.5% versus RWX’s 3.4%—which could appeal to cost-conscious income seekers.
Performance & risk comparison
| Metric | VNQI | RWX |
|---|---|---|
| Max drawdown (5 y) | -35.76% | -35.90% |
| Growth of $1,000 over 5 years | $876 | $829 |
What's inside
RWX tracks international real estate by holding 119 stocks, with 62% in real estate and 38% in cash and others. Top holdings include Mitsui Fudosan (JPX:8801.T), Scentre (ASX:SCG.AX), and Swiss Prime Site (SIX:SPSN.SW), with the largest position accounting for over 7%. The fund has been operating for 19 years, giving it a long track record.
VNQI, by contrast, spreads assets across 682 holdings, with a heavier tilt to real estate (71%) and a lighter cash allocation. Its top three positions—Goodman (ASX:GMG.AX), Mitsui Fudosan (JPX:8801.T), and Mitsubishi Estate (JPX:8802.T)—each make up less than 4% of the fund, resulting in broader diversification and less single-stock concentration than RWX.
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What this means for investors
Global real estate often appears well diversified until investors realize how differently property markets respond once rates, capital flows, and local conditions diverge. That is where VNQI and RWX begin to separate. Both are designed to provide exposure to real estate outside the United States, but they deliver that exposure with very different degrees of concentration and cost.
VNQI is built to behave like a true ex-U.S. real estate index. With hundreds of holdings and modest position sizes, country and issuer risk are spread thin, which keeps individual markets from dominating results. RWX takes a narrower approach. Its smaller portfolio gives greater influence to its largest holdings and regions, which allows specific property markets to drive returns more decisively over shorter periods.
For investors, the distinction becomes clear once international real estate is given weight in a portfolio. VNQI tends to suit those investors who are seeking broad exposure that absorbs regional noise and compounds steadily over time. RWX is better aligned with investors who are comfortable letting a handful of markets and holdings shape outcomes more visibly. Ultimately, it comes down to whether an investor wants international real estate to blend into the portfolio or to stand out when certain markets lead.
Glossary
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges its shareholders.
Dividend yield: The annual dividends paid by a fund or stock, expressed as a percentage of its price.
Beta: A measure of an investment’s volatility compared to the overall market, typically the S&P 500.
AUM (Assets Under Management): The total market value of assets that a fund manages on behalf of investors.
Max drawdown: The largest percentage drop from a fund’s peak value to its lowest point over a specific period.
Growth of $1,000 over 5 years: The ending value if $1,000 was invested five years ago, including price changes and dividends.
Diversification: Spreading investments across various assets to reduce risk from any single holding.
Concentration: The degree to which a fund’s assets are invested in a small number of holdings.
Top holdings: The largest individual investments within a fund’s portfolio, often shown as a percentage of total assets.
Real estate allocation: The proportion of a fund’s assets invested specifically in real estate-related securities.
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Eric Trie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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