REET vs. HAUZ: One Fund Anchors in U.S. REITs, the Other Invests Entirely Abroad

The iShares Global REIT ETF (NYSEMKT:REET) and Xtrackers International Real Estate ETF (NYSEMKT:HAUZ) differ most in geographic exposure, with HAUZ targeting non-U.S. real estate and REET providing broader global diversification including the U.S. HAUZ also edges out REET in yield and expense ratio.

Both iShares Global REIT ETF and Xtrackers International Real Estate ETF offer access to the global real estate market, but with distinct approaches. REET blends U.S. and international real estate investment trusts, while HAUZ focuses solely on developed and emerging markets outside the U.S. This comparison breaks down their costs, performance, portfolio construction, and risk to help investors weigh which may better fit specific goals.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.

HAUZ is more affordable, with a 0.10% expense ratio compared to REET's 0.14%, and it currently delivers a higher dividend yield. This combination may appeal to income-focused investors seeking cost efficiency.

Performance & risk comparison

What's inside

Xtrackers International Real Estate ETF invests in 445 securities, targeting real estate companies in developed and emerging markets outside the U.S. The portfolio leans heavily into real estate (96%), with smaller allocations to industrials and communication services. Its largest holdings are Goodman, Mitsubishi, and Mitsui Fudosan. With a fund age of 12 years, HAUZ offers an established international focus for those seeking to avoid U.S. real estate exposure.

In contrast, iShares Global REIT ETF provides a more globally diversified approach, allocating 100% to real estate with substantial U.S. exposure. Its largest positions are Welltower (NYSE:WELL), Prologis (NYSE:PLD), and Equinix (NASDAQ:EQIX). With 364 holdings, REET offers broader geographic reach, which may appeal to those wanting both domestic and international real estate within a single fund.

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What this means for investors

Real estate investment trusts (REITs) are companies required by law to distribute at least 90% of their taxable income as dividends, making them a natural fit for income investors. Both REET and HAUZ offer broad real estate exposure, but they define "global" very differently.

REET tracks a worldwide REIT index spanning roughly 350 holdings — but about 70% of the fund is anchored in U.S. real estate. Names like Prologis, Welltower, and American Tower dominate the top holdings, meaning REET's performance tracks U.S. real estate sentiment more closely than its global label might suggest.

HAUZ invests entirely outside the United States, spreading more than 400 holdings across Japan, Australia, Europe, and beyond. That genuine international diversification means the fund moves on a different timetable, driven by regional property cycles and foreign interest rate environments rather than Fed policy. This ETF also yields meaningfully more than REET.

Both funds are similarly low-cost, so the real choice is portfolio fit. Investors wanting one-stop global real estate exposure with a U.S. anchor will find REET familiar and straightforward. Those specifically seeking to diversify away from U.S. real estate will find HAUZ does the job more thoroughly.

Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Equinix and Prologis. The Motley Fool has a disclosure policy.