Which Real Estate ETF Is the Better Buy: iShares’ Concentrated ICF or Northern Trust’s Global GQRE?
Key Points
iShares Select U.S. REIT ETF has a lower expense ratio of 0.32% compared to 0.46% for Northern Trust Global Quality Real Estate ETF.
Northern Trust Global Quality Real Estate ETF provides exposure to 201 holdings, while iShares Select U.S. REIT ETF maintains a concentrated portfolio of 30 assets.
iShares Select U.S. REIT ETF delivered a 7.5% total return over the last year, outperforming the 3.5% return from Northern Trust Global Quality Real Estate ETF.
- Motley Fool Issues Rare "Total Conviction" Buy Alert ›
iShares Select U.S. REIT ETF (NYSEMKT:ICF) offers a lower-cost, concentrated U.S. play, while Northern Trust Global Quality Real Estate ETF (NYSEMKT:GQRE) provides broader global diversification with a higher dividend yield.
Investors often turn to real estate investment trusts (REITs) for income and inflation protection. This comparison looks at two distinct approaches: a concentrated fund targeting the largest U.S. REITs and a broad-based index fund covering quality real estate firms across the globe to mitigate regional risks.
Snapshot (cost & size)
| Metric | GQRE | ICF |
|---|---|---|
| Issuer | FlexShares | iShares |
| Share price | $59.66 (as of 2026-10-15) | $64.52 (as of 2026-10-15) |
| Expense ratio | 0.46% | 0.32% |
| 1-yr return (as of Oct. 15, 2026) | 3.5% | 7.5% |
| Dividend yield | 4.5% | 2.7% |
| Beta | 0.89 | 0.93 |
| AUM | $445.9 million | $2.0 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 for long-term holders with a 0.32% expense ratio, while the FlexShares fund charges 0.46%. However, investors seeking current income may prefer the FlexShares fund, which provides a significantly higher dividend payout.
Performance & risk comparison
| Metric | GQRE | ICF |
|---|---|---|
| Max drawdown (5 yr) | (35.1%) | (34.7%) |
| Growth of $1,000 over 5 years (total return) | $1,018 | $1,083 |
What's inside
iShares Select U.S. REIT ETF focuses on a concentrated portfolio of 30 holdings, emphasizing dominant U.S. real estate companies to replicate its benchmark. Its largest positions include Welltower (NYSE:WELL) at 8.39%, Equinix (NASDAQ:EQIX) at 8.09%, and Prologis (NYSE:PLD) at 7.67%. Launched in 2001, it targets the largest and most liquid real estate investment trusts in the domestic market. iShares Select U.S. REIT ETF has paid $1.74 per share over the trailing 12 months, which on its recent ~$64.52 share price works out to a 2.7% yield.
Northern Trust Global Quality Real Estate ETF provides much broader exposure with 201 holdings and a sector breakdown of approximately 99% real estate and 1% consumer cyclical. It strives to match the performance of its underlying global quality index. Its largest positions include Prologis at 6.87%, Welltower at 5.38%, and Equinix at 4.41%. Launched in 2013, the fund follows its index to mitigate risk across international markets while seeking potential income. Northern Trust Global Quality Real Estate ETF has paid $2.65 per share over the trailing 12 months, which on its recent ~$59.66 share price works out to a 4.5% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
Real estate has been a tough place to invest in 2026 as the Federal Reserve resumes rate hikes and mortgage costs stay elevated. In that kind of environment, income matters. And the yield gap between these two funds is hard to ignore.
GQRE pays nearly twice what ICF does in annual income, which is a real advantage for investors who rely on their portfolio to generate cash. That higher yield comes from a quality-screened global portfolio that includes international real estate alongside U.S. names, giving it a broader foundation than ICF's concentrated 30-stock domestic approach.
ICF has delivered stronger five-year returns and charges less than GQRE, sticking to just 30 of the largest U.S. REITs. That concentration works well when domestic real estate leads, but leaves investors with no international exposure when it does not.
For income-focused investors who want global real estate diversification, GQRE's higher yield and broader mandate make it the more interesting choice today despite the higher fee. ICF is the better fit for those who want the simplicity and lower cost of owning only the biggest names in U.S. real estate.
Should you buy stock in iShares Trust - iShares Select U.s. REIT ETF right now?
Before you buy stock in iShares Trust - iShares Select U.s. 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 Select U.s. 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 $355,124!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,254!*
Now, it’s worth noting Stock Advisor’s total average return is 901% — a market-crushing outperformance compared to 210% 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 October 26, 2026.
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.
Recommended Articles
