RWX vs. ICF: One REIT ETF Stays Home, the Other Takes Your Real Estate Portfolio Global
Key Points
ICF is less expensive to own but pays a lower yield than RWX.
RWX delivered a higher 1-year return, while ICF outperformed over the last five years.
ICF concentrates on large U.S. REITs, whereas RWX is broadly diversified across international real estate.
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The State Street SPDR Dow Jones International Real Estate ETF (NYSEMKT:RWX) and the iShares Select U.S. REIT ETF (NYSEMKT:ICF) differ on region, cost, yield, and portfolio concentration, making each potentially appealing for different types of real estate exposure.
RWX aims to capture a wide slice of the global ex-U.S. real estate market, whereas ICF focuses exclusively on large U.S.-listed real estate investment trusts. This comparison may help investors decide whether international diversification or a concentrated U.S. REIT approach better fits their goals.
Snapshot (cost & size)
| Metric | RWX | ICF |
|---|---|---|
| Issuer | SPDR | iShares |
| Expense ratio | 0.59% | 0.32% |
| 1-yr return (as of 2026-03-16) | 18.6% | 7.36% |
| Dividend yield | 3.6% | 2.7% |
| Beta | 0.90 | 0.43 |
| AUM | $310.5 million | $2.1 billion |
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.
ICF looks more affordable to own with its lower expense ratio, though RWX pays a higher dividend yield, which may appeal to income-focused investors seeking international real estate exposure.
Performance & risk comparison
| Metric | RWX | ICF |
|---|---|---|
| Max drawdown (5 y) | -35.92% | -34.75% |
| Growth of $1,000 over 5 years | $797 | $1,117 |
What's inside
ICF holds around 30 U.S. REITs, with a heavy tilt toward industry giants such as Equinix (NASDAQ:EQIX), Welltower (NYSE:WELL), and American Tower (NYSE:AMT). The fund is 100% real estate by sector and has been operating for more than 25 years, offering a focused approach to the U.S. listed property market. Its top positions make up a significant portion of assets, reflecting a preference for large, established REITs.
By contrast, RWX delivers broader diversification, investing in 144 companies across the global ex-U.S. real estate landscape. Its largest holdings include Mitsui Fudosan, Swiss Prime Site, and Scentre Group. RWX’s sector allocation also includes a notable allocation to cash and other securities, which may reduce pure real estate exposure but adds stability. Neither fund has built-in quirks or leverage resets, keeping things straightforward for investors.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Real estate investment trusts (REITs) are companies that own income-producing properties and are required by law to distribute at least 90% of their taxable income to shareholders as dividends. That makes them a natural fit for income-seeking investors, and because real estate tends to move independently of stocks and bonds, REITs can serve as a portfolio diversifier.
The catch is that REITs are sensitive to interest rates, which is why the sector struggled through much of 2023 and 2024. With rates expected to ease further in 2026, many analysts see REITs as better positioned than they've been in years. ICF and RWX both offer REIT exposure but point in opposite directions. ICF holds roughly 30 of the largest U.S. REITs, with its top holdings commanding nearly 60% of the fund. RWX tracks international real estate across Europe, Asia-Pacific, and Canada, excluding U.S. properties entirely.
For investors who already hold domestic real estate exposure and want geographic diversification, RWX fills a specific gap, though currency fluctuations add complexity. ICF is the more straightforward choice for investors looking to participate in a potential U.S. REIT rebound.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Tower and Equinix. The Motley Fool has a disclosure policy.
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