Which Global Real Estate ETF Is the Better Buy: State Street’s RWO or Vanguard’s International VNQI?
Key Points
State Street SPDR Dow Jones Global Real Estate ETF includes holdings in the U.S., developed, and emerging markets, while Vanguard Global ex-U.S. Real Estate ETF focuses solely on international property markets.
Vanguard Global ex-U.S. Real Estate ETF provides a more cost-effective solution with a significantly lower expense ratio and a higher trailing-12-month dividend yield.
State Street SPDR Dow Jones Global Real Estate ETF has outperformed on a five-year total return basis but exhibits higher volatility relative to the broader market.
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State Street SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO) provides broad global exposure including the United States, while Vanguard Global ex-U.S. Real Estate ETF (NASDAQ:VNQI) targets international property markets exclusively with much lower fees.
Real estate investors often choose between global breadth and regional specificity. These two funds offer distinct approaches to international property exposure. While the State Street fund mixes domestic and international assets, the Vanguard fund focuses purely on diversification outside the United States.
Snapshot (cost & size)
| Metric | VNQI | RWO |
|---|---|---|
| Issuer | Vanguard | SPDR |
| Share price | $42.99 (as of 2026-11-02) | $48.13 (as of 2026-11-02) |
| Expense ratio | 0.12% | 0.5% |
| 1-yr return (as of 2026-11-02) | (4.5%) | 10.5% |
| Dividend yield | 5.0% | 3.4% |
| Beta | 0.72 | 0.88 |
| AUM | $3.3B | $1.3B |
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 Vanguard fund is the more affordable option with a 0.12% expense ratio, compared to 0.5% for the State Street fund. Vanguard also offers a higher payout, with a 1.6 percentage point lead in yield.
Performance & risk comparison
| Metric | VNQI | RWO |
|---|---|---|
| Max drawdown (5 yr) | (33.4%) | (32.9%) |
| Growth of $1,000 over 5 years (total return) | $905 | $1,045 |
What's inside
State Street SPDR Dow Jones Global Real Estate ETF allocates 90% to real estate, with 7% in cash and other assets. It holds 223 assets, and its largest positions include Welltower (NYSE:WELL) at 10.22%, Prologis (NYSE:PLD) at 7.40%, and Equinix (NASDAQ:EQIX) at 6.22%. It was launched in 2008. The State Street fund has paid $1.63 per share over the trailing 12 months, which on its recent ~$48.13 share price works out to a 3.4% yield.
Vanguard Global ex-U.S. Real Estate ETF holds 729 stocks, with a heavy 99% tilt toward real estate and 1% in industrials. Its top holdings include Goodman Group (ASX:GMG) at 3.82%, Mitsubishi Estate at 2.74%, and Mitsui Fudosan (TSE:8801) at 2.51%. It was launched in 2010. The Vanguard fund has paid $2.16 per share over the trailing 12 months, which on its recent ~$42.99 share price works out to a 5% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
I'd go with VNQI. It gives you property from around the world that most U.S. investors do not already own, at a fraction of RWO's price. International real estate stocks beat U.S. ones in 2025 for the first time since 2017, led by Asia and Europe, but they have cooled off this year as interest rates rose.
That pullback is part of the appeal. International property has been priced at a discount to U.S. real estate, which gives patient investors room to benefit if those prices catch up. VNQI owns roughly 700 companies across more than 30 countries and pays a yield of about 5%, a healthy income stream while you wait.
State Street SPDR Dow Jones Global Real Estate ETF (RWO) sounds global, but most of its money is still in U.S. real estate, which many investors already own. And it charges far more. For most long-term investors, VNQI is the cheaper and more useful way to add real estate beyond U.S. borders. RWO fits those who want one fund covering both U.S. and international property.
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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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