REET vs. RWX: Which Global Real Estate ETF Is the Better Buy?
Key Points
REET carries a much lower expense ratio and greater assets under management than RWX.
RWX delivered a stronger one-year return but lagged REET over five years on a total return basis.
REET holds over 300 global real estate companies, offering broader diversification than RWX’s more concentrated ex-U.S. focus.
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The State Street SPDR Dow Jones International Real Estate ETF (NYSEMKT: RWX) focuses on international real estate outside the U.S, while the iShares Global REIT ETF (NYSEMKT: REET) offers global real estate exposure at a much lower cost and with broader diversification.
Both RWX and REET target real estate equities, but their areas of focus are a bit different: RWX tracks international (ex-U.S.) property companies, whereas REET includes both U.S. and international real estate investment trusts and firms. This comparison looks at cost, performance, risk, and portfolio composition to help investors weigh which approach best aligns with their goals.
Snapshot (cost & size)
| Metric | RWX | REET |
|---|---|---|
| Issuer | State Street | iShares |
| Expense ratio | 0.59% | 0.14% |
| 1-yr return (as of March 16, 2026) | 14.1% | 6.9% |
| Dividend yield | 3.4% | 3.4% |
| Beta | 0.90 | 1.07 |
| AUM | $310.5 million | $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.
While the dividend yields for these ETFs are roughly the same, REET’s fees are notably lower, and it also manages a much larger pool of assets than RWX.
Performance & risk comparison
| Metric | RWX | REET |
|---|---|---|
| Max drawdown (5 y) | -35.89% | -32.06% |
| Growth of $1,000 over 5 years | $799 | $996 |
What's inside
REET provides exposure to over 300 global real estate firms across both U.S. and international markets. Its largest holdings include Welltower (NYSE:WELL) at 8.5%, Prologis (NYSE:PLD) at 7.2%, and Equinix (NASDAQ:EQIX) at 5.5%. The fund’s broad, diversified portfolio helps spread risk across geographies and property types. However, you can also see that REET -- as an index tracker -- has a handful of relatively large positions in individual companies.
RWX, by contrast, concentrates on international (ex-U.S.) real estate, with 29% of its assets currently invested in Japan. Its top holdings are Mitsui Fudosan Co (JPY: 8801.T) at 7.0%, Swiss Prime Site Reg (SIX: SPSN.SW) at 3.1%, and SEGRO Plc (LSE: SGRO.L) at 3.0%. This focus may appeal to investors specifically seeking non-U.S. property exposure rather than a global blend. Neither ETF employs leverage or specialized strategies.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
For most investors, the choice between REET and RWX comes down to one question: do you want global real estate exposure, or exclusively international exposure with no U.S. overlap?
REET's lower expense ratio -- 0.45 percentage points less than RWX -- is a meaningful advantage that will compound over time. That difference may sound small, but keeping more of your return always matters. REET's five-year total return edge over RWX reinforces this point. And with over 300 holdings spanning both domestic and international markets, REET is built for investors who want a single, diversified vehicle to access the global real estate sector.
RWX has its own appeal, though. Investors who already hold U.S. real estate -- whether through direct property ownership, a domestic REIT, or a popular fund like Vanguard Real Estate ETF (NYSEMKT: VNQ) -- might genuinely prefer RWX's international-only exposure as a complement rather than an overlap. Its recent one-year outperformance also suggests it can deliver when international markets shine.
The data favors REET on cost and long-term performance, but RWX fills a genuine portfolio need for those seeking geographic diversification away from the U.S. Most investors building from scratch will likely find REET's broader reach and lower cost the more straightforward starting point -- but for those fine-tuning an existing allocation, RWX is worth a closer look.
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Andy Gould has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Equinix, Prologis, and Vanguard Real Estate ETF. The Motley Fool recommends Segro Plc. The Motley Fool has a disclosure policy.
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