SPDR vs. iShares: Which REIT ETF Comes Out on Top?
Key Points
State Street SPDR Dow Jones REIT ETF focuses on U.S. markets, while iShares Global REIT ETF provides global exposure across developed and emerging regions.
iShares' ETF offers a lower expense ratio of 0.14% compared to the 0.25% cost of State Street's fund.
The State Street ETF has delivered a higher one-year total return but features a slightly higher beta profile than the iShares fund.
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The iShares Global REIT ETF (NYSEMKT:REET) offers low-cost, global real estate exposure, while the State Street SPDR Dow Jones REIT ETF (NYSEMKT:RWR) provides a more concentrated, higher-cost portfolio strictly focused on the United States.
Investors often turn to real estate investment trusts (REITs) for reliable income and potential protection against inflation through physical assets. While the iShares fund serves as a broad-market tool for capturing global property trends across multiple continents, the State Street fund homes in specifically on the domestic market, tracking the Dow Jones U.S. Select REIT Capped Index to reflect American property performance.
Snapshot (cost & size)
| Metric | REET | RWR |
|---|---|---|
| Issuer | iShares | SPDR |
| Expense ratio | 0.14% | 0.25% |
| 1-yr return (as of June 18, 2026) | 9.3% | 13.1% |
| Dividend yield | 3.4% | 3.4% |
| Beta | 0.99 | 1.01 |
| AUM | $4.9 billion | $1.8 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. Dividend yield is the trailing-12-month distribution yield.
The iShares fund is the cheapers option for long-term holders, with an expense ratio of 0.14%. Their dividend yields are the same.
Performance & risk comparison
| Metric | REET | RWR |
|---|---|---|
| Max drawdown (5 yr) | (32.20%) | (32.60%) |
| Growth of $1,000 over 5 years (total return) | $1,145 | $1,258 |
What's inside
The State Street fund focuses almost exclusively on U.S. real estate. Its 99 holdings are more concentrated than its global peer; its largest positions include Prologis (NYSE:PLD) at 9.91%, Welltower (NYSE:WELL) at 9.50%, and Equinix (NASDAQ:EQIX) at 4.75%. This fund, launched in 2001, manages $1.8 billion in AUM and has a trailing-12-month dividend payout of $3.73 per share.
In comparison, the iShares fund holds 319 positions, spanning developed and emerging markets globally. Its portfolio is 100% invested in real estate, with its largest positions including Welltower at 8.07%, Prologis at 7.45%, and Equinix at 5.88%. Launched in 2014, the iShares fund manages $4.9 billion in AUM and has a trailing-12-month dividend of $0.93 per share.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
These ETFs have comparable recent returns and dividend yields. The State Street fund has a slightly higher expense ratio, but I don't think it's meaningful enough to influence whether someone should invest in it.
One area of differentiation that stands out to me, however, is concentration risk. RWR holds far fewer stocks than REET, and its top five holdings make up roughly 33% of the portfolio. Those five equities will have an outsize impact on the fund's performance. The State Street ETF is also smaller overall in terms of assets under management, and its average trading volume is a fraction of its peer's.
Given the concentration risk and much lower liquidity, I'd be more inclined to invest in REET than RWR.
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Erin Kennedy 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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