RWR vs. REET: Same Blue-Chip REIT Foundation, Different Geographic Strategies
Key Points
REET charges a lower expense ratio and has over twice the assets under management compared to RWR.
Both funds deliver similar dividend yields and risk profiles, but REET offers broader global diversification.
RWR has slightly outperformed over five years, but REET provided stronger total returns in the past year.
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The State Street SPDR Dow Jones REIT ETF (NYSEMKT:RWR) and iShares Global REIT ETF (NYSEMKT:REET) stand apart on cost, geographic exposure, and size -- RWR sticks to U.S. real estate, while REET brings global reach with a lower fee and much larger assets under management (AUM).
Both RWR and REET target real estate investment trusts, but RWR zeroes in on the U.S. market, while REET casts a wider net across global developed and emerging markets. This comparison highlights how their fees, yields, performance, and portfolio construction may appeal to different types of real estate-focused investors.
Snapshot (cost & size)
| Metric | RWR | REET |
|---|---|---|
| Issuer | SPDR | iShares |
| Expense ratio | 0.25% | 0.14% |
| 1-yr return (as of 2026-03-16) | 9.6% | 10.85% |
| Dividend yield | 3.4% | 3.4% |
| Beta | 1.12 | 1.10 |
| AUM | $1.7 billion | $4.8 billion |
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.
REET is more affordable on fees, charging 0.14% compared to RWR’s 0.25%, and both funds currently deliver an identical dividend yield, making cost the main differentiator for income-focused investors.
Performance & risk comparison
| Metric | RWR | REET |
|---|---|---|
| Max drawdown (5 y) | -32.58% | -32.14% |
| Growth of $1,000 over 5 years | $1,087 | $1,004 |
What's inside
REET holds 364 securities and provides exposure to real estate companies from around the globe, including both developed and emerging markets. Its largest positions are Welltower (NYSE:WELL), Prologis (NYSE:PLD), and Equinix (NASDAQ:EQIX), and the fund has been operating for nearly 12 years. This broader diversification may appeal to investors seeking global real estate exposure.
RWR, in contrast, focuses almost exclusively on U.S. real estate, with 98% of assets in that sector and a 98-holding portfolio. Its top positions -- Welltower (NYSE:WELL), Prologis (NYSE:PLD), and Equinix (NASDAQ:EQIX) -- overlap with REET but with slightly larger weights. Neither fund carries structural quirks or non-standard features, keeping their portfolios straightforward for real estate investors.
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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 RWR and REET are built on the same foundation: their top holdings of Welltower, Prologis, and American Tower are identical.
That shared core is worth understanding. Welltower is the dominant healthcare REIT, riding the demographic tailwind of an aging population. Prologis is the global logistics giant powering e-commerce warehouses and now expanding into data centers. American Tower operates telecom infrastructure across multiple continents. Together they represent the modern REIT, which is less about traditional landlords, more about secular growth.
Where the funds diverge is their scope. RWR is a pure U.S. REIT fund holding roughly 100 domestic names, with those shared top holdings carrying significant weight. REET adds an international layer, spreading across roughly 350 global REITs while charging less than RWR, meaning investors get broader geographic diversification at a lower annual cost.
For investors whose portfolios are already heavy on U.S. assets, RWR adds more of the same: a pure domestic bet that rises and falls with the American real estate cycle. REET makes more sense for those who want the same blue-chip REIT foundation but with international markets doing some of the work alongside it.
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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.
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