Domestic REITs or International Real Estate? State Street's RWR and RWX Offer Very Different Answers.
Key Points
RWR charges a lower expense ratio and has much larger assets under management (AUM) than RWX.
RWX posted a higher one-year total return, but RWR experienced a smaller maximum drawdown over five years.
RWR is concentrated in U.S. real estate, while RWX focuses on international property companies.
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The SPDR Dow Jones International Real Estate ETF (NYSEMKT:RWX) and SPDR Dow Jones REIT ETF (NYSEMKT:RWR) both target real estate, but RWR’s lower fees, larger assets under management (AUM), and U.S.-centric holdings set it apart from the globally diversified, higher-cost RWX.
Both funds are designed for real estate exposure, but RWX invests internationally, while RWR sticks to U.S. real estate investment trusts (REITs). This comparison unpacks cost, performance, risk, and portfolio makeup to help clarify which approach may appeal to different real estate-focused investors.
Snapshot (cost & size)
| Metric | RWX | RWR |
|---|---|---|
| Issuer | SPDR | SPDR |
| Expense ratio | 0.59% | 0.25% |
| 1-yr return (as of 2026-03-18) | 18.6% | 9.6% |
| Dividend yield | 3.6% | 3.5% |
| Beta | 0.77 | 1.01 |
| AUM | $310.5 million | $1.8 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.
RWR is notably more affordable, charging less than half the expense ratio of RWX, and its dividend yield is virtually identical, so cost differences may matter more to fee-sensitive investors than payout gaps.
Performance & risk comparison
| Metric | RWX | RWR |
|---|---|---|
| Max drawdown (5 y) | -35.92% | -32.58% |
| Growth of $1,000 over 5 years | $797 | $1,087 |
What's inside
RWR takes a focused approach, holding around 100 U.S. REITs with nearly all assets in real estate and minimal cash. Its top holdings as of the latest data include Welltower (NYSE:WELL), Prologis (NYSE:PLD), and Equinix (NASDAQ:EQIX), together making up over 24% of assets. The fund’s almost 25-year track record and $1.8 billion in assets under management (AUM) add to its stability, and its narrow sector tilt may appeal to those seeking pure-play U.S. property exposure.
By contrast, RWX invests across 144 international real estate companies, offering broader geographic diversification. Its largest allocations are to Mitsui Fudosan, Swiss Prime Site, and Scentre Group, and the fund holds a modest cash and other assets position (15%), which may dampen volatility but also dilute real estate purity. No notable quirks, leverage, or hedging features are present in either fund.
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What this means for investors
Real estate investment trusts (REITs) are companies required by law to distribute at least 90% of their taxable income as dividends, making them a go-to for income investors. RWR is a pure U.S. REIT fund, holding roughly 100 domestic REITs spanning industrial, healthcare, residential, and retail properties. That mandate matters: Every company in the portfolio carries the income-distribution requirement that makes REITs attractive in the first place.
RWX ventures abroad, tracking real estate across Europe, Asia-Pacific, and Canada — but international real estate indexes also include real estate operating companies, or REOCs, which reinvest profits rather than paying them out. That mix can quietly dilute the income profile investors might expect.
The cost difference compounds this consideration. RWX charges more than twice what RWR does, meaning international exposure needs to meaningfully outperform to justify the gap. For investors already holding domestic real estate, RWX adds geographic diversification, though currency risk travels with it. RWR is the cleaner, more cost-efficient choice for straightforward REIT exposure as the sector eyes a potential 2026 rebound.
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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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