HAUZ vs REET: Global Real Estate or a U.S.-Anchored REIT Portfolio

Xtrackers International Real Estate ETF (HAUZ) stands out for yield and recent return, while iShares Global REIT ETF (REET) brings greater scale, liquidity, and U.S. REIT concentration to the real estate ETF space.

This comparison looks at HAUZ and REET, two global real estate exchange-traded funds that target listed property companies and real estate investment trusts worldwide. While each offers diversified exposure, their cost, performance, and underlying holdings show distinct tilts for investors to weigh.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.

HAUZ looks more affordable on annual fees and offers a higher payout, while REET comes in slightly higher on cost but with greater scale and liquidity.

Performance & risk comparison

What's inside

REET tracks a global index of real estate investment trusts, holding 328 stocks and focusing exclusively on the real estate sector. Its top positions—Welltower Inc (NYSE:WELL), Prologis Reit Inc (NYSE:PLD), and Equinix Reit Inc (NASDAQ:EQIX)—account for a sizable portion of assets, resulting in a more concentrated top end. At 11.5 years old and with over $4.3 billion in assets under management (AUM), REET is one of the largest and most liquid global real estate ETFs available.

HAUZ, in contrast, provides a more geographically diversified real estate exposure, with 408 holdings and significant weights to companies like Goodman Group (ASX:GMG.AX), Mitsui Fudosan Co Ltd (JPX:8801.T), and Mitsubishi Estate Co Ltd (JPX:8802.T). The fund is tilted toward developed markets outside the U.S., and its sector allocation remains almost entirely real estate, with minor exposure to communication services and industrials. Both funds avoid leverage, currency hedging, and other structural quirks.

What this means for investors

Global real estate often appears diversified until property markets respond to different interest-rate paths and local demand cycles. That is where the difference between HAUZ and REET starts to matter. Both provide access to listed real estate around the world, but they express that exposure through very different geographic and structural choices, which become more apparent when markets diverge.

REET concentrates much of its weight in large U.S. REITs that dominate global benchmarks. Holdings like Welltower, Prologis, and Equinix give the fund scale and liquidity, but they also anchor performance to U.S. real estate sentiment and U.S. interest-rate dynamics. HAUZ distributes exposure more evenly across developed markets outside the United States, with meaningful positions in Australia, Japan, and Europe. That broader regional mix reduces reliance on any single property market and introduces property cycles that respond to different economic and policy forces.

For investors, the distinction shows up once the fund is embedded in a portfolio. REET suits those who want global real estate exposure that remains closely tied to the U.S. REIT market and trades with depth and familiarity. HAUZ fits investors seeking property exposure that is less centered on U.S. outcomes and more influenced by regional real estate trends abroad. What matters is whether an investor wants global real estate to mirror U.S. REIT cycles or to introduce exposure that moves on a different timetable.

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Glossary

ETF (Exchange-Traded Fund): A fund holding a basket of securities that trades on an exchange like a stock.
Real estate investment trust (REIT): A company that owns or finances income-producing real estate and pays out most earnings as dividends.
Dividend yield: Annual dividends per share divided by the share price, showing income produced by an investment.
Expense ratio: Annual fund operating costs expressed as a percentage of the fund’s average assets.
AUM (Assets under management): The total market value of all assets a fund or manager oversees.
Beta: A measure of an investment’s volatility compared with the overall stock market, often the S&P 500.
Max drawdown: The largest peak-to-trough decline in an investment’s value over a specific period.
Total return: The investment’s price change plus all dividends and distributions, assuming those payouts are reinvested.
Index: A rules-based basket of securities used to track or benchmark a particular market or sector.
Liquidity: How easily and quickly an investment can be bought or sold without significantly affecting its price.
Concentration: The degree to which a fund’s assets are allocated to a small number of holdings.
Developed markets: Economies with advanced infrastructure, stable regulatory systems, and higher income levels, such as Japan or Australia.

Eric Trie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.