VNQI vs. REET: Which Global Real Estate ETF Is the Best Fit for Your Portfolio?
Key Points
VNQI offers a higher dividend yield compared to REET, but has a higher five-year risk profile as measured by maximum drawdown.
REET allocates more heavily to U.S.-listed real estate names and shows higher recent volatility.
Both ETFs have similar fees and assets under management.
- 10 stocks we like better than iShares Trust - iShares Global REIT ETF ›
Vanguard Global ex-U.S. Real Estate ETF (NASDAQ: VNQI) and iShares Global REIT ETF (NYSE: REET) both target global real estate exposure, but VNQI delivers a higher yield while REET leans more heavily into U.S.-listed holdings with a slightly higher expense ratio.
Both VNQI and REET provide access to real estate investment trusts (REITs) on a global scale, offering diversified exposure across developed and emerging markets. This analysis compares their costs, recent returns, and portfolio composition to help investors assess which ETF fits their real estate allocation goals.
Snapshot (cost & size)
| Metric | VNQI | REET |
|---|---|---|
| Issuer | Vanguard | iShares |
| Expense ratio | 0.12% | 0.14% |
| 1-yr return (as of March 19, 2026) | 10.2% | 5.9% |
| Dividend yield | 4.3% | 3.4% |
| Beta | 0.91 | 1.07 |
| AUM | $4.2 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.
VNQI and REET charge similar fees, with VNQI slightly edging out REET on expense ratio (0.12% vs 0.14%), while also providing a higher dividend yield -- a detail that may appeal to income-focused investors.
Performance & risk comparison
| Metric | VNQI | REET |
|---|---|---|
| Max drawdown (5 y) | -35.77% | -32.06% |
| Growth of $1,000 over 5 years | $810 | $995 |
What's inside
REET holds positions in over 300 securities. This ETF tracks global real estate equities but concentrates more heavily in U.S.-listed names, with Welltower (NYSE:WELL), Prologis (NYSE:PLD), and Equinix(NASDAQ:EQIX) making up more than 21% of the portfolio. Nearly 70% of the funds assets are invested in the U.S. This focus may result in different regional or sector exposures versus more diversified global peers.
VNQI, by contrast, invests in more than 30 countries, with more than 700 total holdings. Its three largest positions are Mitsubishi Estate Co Ltd (OTC:MITEY), Goodman Group (OTC:GMGSF), and Mitsui Fudosan Co Ltd (OTC:MTSFY) -- each accounts for less than 3.5% of assets, reflecting broader diversification. This approach may better capture international real estate trends and reduce concentration risk.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Global real estate ETFs have faced a tricky environment in recent years, with rising interest rates squeezing property valuations and dampening REIT performance across the board. But with rate cycles now shifting in many regions -- and international markets recovering at different paces -- the question of how to get global real estate exposure is worth revisiting.
Here's the core trade-off: REET gives you a more familiar, U.S.-anchored portfolio. Its top holdings -- Welltower, Prologis, and Equinix -- are well-known names with strong track records in healthcare real estate, logistics, and data centers, respectively. That U.S. tilt may feel steadier for American investors, but it also means you're not getting as much geographic diversification.
VNQI flips that script. By excluding U.S. holdings entirely and spreading exposure across more than 30 countries, it gives investors something genuinely different -- more Japan, Australia, and European exposure, and less overlap with what's likely already in your portfolio. The higher yield is a real plus for income seekers, though investors should note that international real estate has historically shown greater volatility and currency risk than its domestic counterpart.
Income-focused investors or those looking to reduce U.S. concentration may find VNQI's broader footprint and higher yield worth the added complexity. Those who prefer the familiarity of U.S. markets may lean toward REET. With very similar expense ratios, the decision comes down to what kind of global exposure you're actually trying to add.
Should you buy stock in iShares Trust - iShares Global REIT ETF right now?
Before you buy stock in iShares Trust - iShares Global REIT ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares Trust - iShares Global REIT ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $510,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,105,949!*
Now, it’s worth noting Stock Advisor’s total average return is 927% — a market-crushing outperformance compared to 186% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 19, 2026.
Andy Gould has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Equinix, Goodman Group, and Prologis. The Motley Fool has a disclosure policy.
Recommended Articles
