iShares REET vs FlexShares GQRE: Which REIT Fund Wins?
Key Points
iShares Global REIT ETF manages $5 billion in assets, offering significantly higher liquidity than FlexShares Global Quality Real Estate Index Fund.
FlexShares Global Quality Real Estate Index Fund provides a higher trailing-12-month dividend yield of 4.3% compared to 3.4% for the iShares fund.
iShares Global REIT ETF has outperformed over the past year and shows a slightly better 5-year growth profile with lower maximum drawdowns.
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Investors choosing between the iShares Global REIT ETF (NYSEMKT:REET) and the FlexShares Global Quality Real Estate Index Fund (NYSEMKT:GQRE) may weigh the iShares fund's superior liquidity and lower cost against the FlexShares fund's higher yield.
Both iShares Global REIT ETF and FlexShares Global Quality Real Estate Index Fund provide exposure to global real estate markets, offering a way to diversify a portfolio away from traditional equities and fixed income. This comparison breaks down the underlying indexes, liquidity profiles, and historical volatility to help determine which fund better suits a specific income or growth strategy.
Snapshot (cost & size)
| Metric | GQRE | REET |
|---|---|---|
| Issuer | FlexShares | iShares |
| Share price | $64.58 (as of 2026-08-20) | $28.08 (as of 2026-08-20) |
| Expense ratio | 0.45% | 0.14% |
| 1-yr return (as of 2026-09-02) | 11.2% | 7.5% |
| Dividend yield | 4.3% | 3.4% |
| Beta | 0.94 | 0.98 |
| AUM | $412 million | $5 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). 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 more affordable with an expense ratio of 0.14%. However, the FlexShares fund may appeal to income-focused investors, as its trailing-12-month dividend yield sits almost one percentage point higher than iShares.
Performance & risk comparison
| Metric | GQRE | REET |
|---|---|---|
| Max drawdown (5 yr) | (35.1%) | (32.2%) |
| Growth of $1,000 over 5 years (total return) | $1,053 | $1,085 |
What's inside
iShares Global REIT ETF holds 316 positions, providing broad exposure to developed and emerging real estate markets by tracking the FTSE EPRA/NAREIT Global REIT Index. The portfolio is 100% real estate, and its largest positions include Welltower at 9%, Prologis at 7%, and Equinix at 5%.
The fund was launched in 2014. iShares Global REIT ETF has paid $0.93 per share over the trailing 12 months, which, on its recent ~$28.1 share price, works out to a 3.4% yield.
FlexShares Global Quality Real Estate Index Fund holds 214 securities and tilts toward quality factors via the Northern Trust Global Quality Real Estate Index. The portfolio is 99% real estate and 1% consumer cyclical, and its largest positions include Equinix at 6.82%, Equity Residential at 5.85%, and Welltower at 4.47%.
This fund was launched in 2019. FlexShares Global Quality Real Estate Index Fund has paid $2.73 per share over the trailing 12 months, which, on its recent ~$64.6 share price, works out to a 4.2% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy?
The iShares (REET) offers significantly greater liquidity, a lower expense ratio, and a history of slightly lower volatility. The main advantage of the FlexShares is its higher dividend yield. Still, investors have to be willing to accept the potential for continued higher volatility and slightly lower returns than the iShares.
Overall, REET looks like the better buy. The only reason to select the FlexShares is for investors who need more income. The iShares' larger asset size gives investors the advantage of a more diversified portfolio. This also plays a factor in lowering the portfolio's volatility compared to the S&P 500 index.
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John Ballard 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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