Global REITs or U.S. Only: Which iShares ETF Is the Better Buy, REET or ICF?
Key Points
iShares Global REIT ETF offers a significantly lower expense ratio of 0.14% compared to 0.32% for iShares Select U.S. REIT ETF.
iShares Select U.S. REIT ETF maintains a highly concentrated portfolio of 34 domestic holdings while iShares Global REIT ETF diversifies across over 300 global positions.
iShares Global REIT ETF provides a higher trailing-12-month distribution yield of 3.3% compared to 2.4% for iShares Select U.S. REIT ETF.
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iShares Global REIT ETF (NYSEMKT:REET) provides broad exposure to developed and emerging market real estate, while iShares Select U.S. REIT ETF (NYSEMKT:ICF) offers a concentrated basket of the largest domestic property owners.
Real estate investment trusts (REITs) offer a way to gain exposure to property markets without managing physical buildings. While both funds are issued by BlackRock (NYSE:BLK), each fund serves a different purpose for investors seeking to build their real estate allocation.
Snapshot (cost & size)
| Metric | REET | ICF |
|---|---|---|
| Issuer | iShares | iShares |
| Share price | $27.81 (as of 2026-07-10) | $68.20 (as of 2026-07-10) |
| Expense ratio | 0.14% | 0.32% |
| 1-yr return (as of 2026-07-10) | 16.4% | 14.2% |
| Dividend yield | 3.3% | 2.4% |
| Beta | 0.92 | 0.95 |
| AUM | $4.9B | $2.1B |
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.
REET is significantly more affordable with an expense ratio of 0.14%, compared to 0.32% for ICF. iShares Global REIT ETF also currently offers a higher payout, with a distribution yield of 3.3% versus 2.4% for ICF.
Performance & risk comparison
| Metric | REET | ICF |
|---|---|---|
| Max drawdown (5 yr) | (32.2%) | (34.7%) |
| Growth of $1,000 over 5 years (total return) | $1,137 | $1,145 |
What's inside
iShares Select U.S. REIT ETF (NYSEMKT:ICF) focuses on 34 of the largest U.S. real estate companies. While its sector breakdown is not reported, its largest positions include Welltower (NYSE:WELL) at 8.45%, Prologis (NYSE:PLD) at 7.88%, and Equinix (NASDAQ:EQIX) at 7.67%. It was launched in 2001. iShares Select U.S. REIT ETF has paid $1.66 per share over the trailing 12 months, which on its recent ~$68.20 share price works out to a 2.4% yield.
iShares Global REIT ETF (NYSEMKT:REET) tracks a broader index of 350 holdings across global developed and emerging markets, with 100% of the portfolio in the real estate sector. Its largest positions include Welltower at 8.89%, Prologis at 7.13%, and Equinix at 5.62%. It was launched in 2014. iShares Global REIT ETF has paid $0.93 per share over the trailing 12 months, which on its recent ~$27.81 share price works out to a 3.3% yield.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Real estate investing through ETFs comes down to a familiar trade-off between breadth and concentration. REET spreads across more than 300 global REITs spanning developed and emerging markets, delivering broader diversification and a higher yield at a lower cost than ICF. The same blue chip names anchor both funds, but REET surrounds them with international exposure that ICF avoids entirely.
ICF concentrates in just 34 of the largest U.S. REITs. That tight focus has delivered stronger five-year returns than REET, reflecting the dominance of domestic commercial real estate during that period. It charges more than twice what REET does, a cost that adds up year after year.
For investors who already hold significant U.S. real estate exposure, REET's global reach and lower cost make it the more practical addition. ICF is better for those who want pure, concentrated domestic REIT exposure and are prepared to pay a premium for it. For most long-term investors, REET's combination of lower cost, higher yield, and broader diversification makes it the stronger starting point.
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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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