Better Real Estate ETF: FlexShares' GQRE vs. State Street's RWR
Key Points
GQRE costs nearly twice as much as RWR but offers a higher dividend yield and broader global exposure.
RWR has delivered a stronger five-year total return with a smaller drawdown than GQRE.
GQRE holds more positions, with a global real estate tilt, while RWR focuses strictly on U.S. REITs.
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The State Street SPDR Dow Jones REIT ETF (NYSEMKT:RWR) and FlexShares Global Quality Real Estate Index Fund (NYSEMKT:GQRE) mainly differ on cost, yield, and geographic reach, with RWR focusing on U.S. REITs and GQRE offering a global portfolio at a higher expense ratio.
Both RWR and GQRE seek to provide real estate exposure, but they approach it differently. RWR invests in U.S.-listed real estate investment trusts (REITs), while GQRE expands the playing field to include global REITs, aiming for income and diversification. This comparison explores which approach may appeal given recent returns, cost, and portfolio makeup.
Snapshot (cost & size)
| Metric | RWR | GQRE |
|---|---|---|
| Issuer | SPDR | FlexShares |
| Expense ratio | 0.25% | 0.45% |
| 1-yr return (as of Mar. 16, 2026) | 9.6% | 12.2% |
| Dividend yield | 3.4% | 4.3% |
| Beta | 1.12 | 1.01 |
| AUM | $1.7 billion | $400.6 million |
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.
RWR is more affordable on fees, with an expense ratio of 0.25% compared to GQRE’s 0.46%, but GQRE offers a higher dividend yield at 4.3% versus RWR’s 3.4%, which may appeal to income-focused investors.
Performance & risk comparison
| Metric | RWR | GQRE |
|---|---|---|
| Max drawdown (5 y) | -32.58% | -35.08% |
| Growth of $1,000 over 5 years | $1,087 | $1,013 |
What's inside
GQRE targets global REITs, holding 219 positions across developed and emerging markets, and has been operating for over 12 years. Its largest holdings include American Tower (NYSE:AMT), Prologis (NYSE:PLD), and Welltower (NYSE:WELL), with the fund fully allocated to real estate and a focus on quality screens. This broad approach may suit those seeking broader geographic coverage and higher income potential.
By contrast, RWR sticks to U.S. REITs, with nearly all assets in domestic real estate names. Its top holdings feature Welltower (NYSE:WELL), Prologis (NYSE:PLD), and Equinix (NASDAQ:EQIX), and the fund counts 98 positions. Without global diversification, RWR may appeal to those prioritizing U.S. real estate exposure and a longer track record of stable returns.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Real estate ETFs are an excellent method of investing in real estate investment trusts (REITs). They offer attractive dividend yields, serving as a good source of passive income.
Making the choice between the State Street SPDR Dow Jones REIT ETF (RWR) and FlexShares Global Quality Real Estate Index Fund (GQRE) comes down to individual investor goals and appetite for risk.
GQRE may have a higher expense ratio, but in exchange, it offers exposure to multiple international real estate markets. This greater diversification cushions against a downturn in any one market. However, currency fluctuations may affect returns, and emerging markets hold greater risk than developed ones, as demonstrated by GQRE’s higher max drawdown.
RWR solely targets U.S. REITs, which is ideal for investors seeking concentrated exposure to the American real estate market. It also sports far greater assets under management than GQRE, giving it higher liquidity. But its single-market focus means RWR is vulnerable to U.S.-specific economic downturns and interest rates.
Ultimately, GQRE is for investors who prioritize higher diversification, while RWR is for those who want to stick strictly to the U.S. market.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Tower, Equinix, and Prologis. The Motley Fool has a disclosure policy.
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