GQRE Offers Higher Yield and Growth Than RWX
Key Points
GQRE charges a lower expense ratio and offers a higher dividend yield than RWX.
RWX outperformed on one-year return, but GQRE showed stronger five-year growth and a slightly milder max drawdown.
GQRE holds more positions and is fully concentrated in real estate.
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The FlexShares Global Quality Real Estate Index Fund (NYSEMKT:GQRE) stands out for its lower costs, higher yield, and broader real estate focus, while the State Street SPDR Dow Jones International Real Estate ETF (NYSEMKT:RWX) offers a more diversified geographic mix and posted stronger one-year performance.
Both GQRE and RWX provide global real estate exposure, but their strategies and portfolios differ in important ways. This comparison examines costs, returns, risk, and portfolio construction to help investors decide which fund best aligns with their goals for income, diversification, and sector exposure.
Snapshot (cost & size)
| Metric | RWX | GQRE |
|---|---|---|
| Issuer | SPDR | FlexShares |
| Expense ratio | 0.59% | 0.45% |
| 1-yr return (as of 2026-03-16) | 19.0% | 12.9% |
| Dividend yield | 3.6% | 4.5% |
| Beta | 0.90 | 1.01 |
| AUM | $288.0 million | $357.2 million |
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.
GQRE is more affordable in terms of fees, charging 0.45% compared to RWX’s 0.59%, and delivers a higher dividend yield by nearly a full percentage point, which may appeal to income-focused investors.
Performance & risk comparison
| Metric | RWX | GQRE |
|---|---|---|
| Max drawdown (5 y) | (35.9%) | (35.1%) |
| Growth of $1,000 over 5 years | $985 | $1,202 |
What's inside
GQRE focuses exclusively on real estate companies, allocating 96% of assets to the sector and holding about 4% in cash. It holds a portfolio of 174 positions. Its top holdings include American Tower (NYSE:AMT), Prologis (NYSE:PLD), and Welltower (NYSE:WELL), which together make up about 15% of the fund. The fund aims to capture global quality real estate by tracking an index designed around that theme, offering broad diversification across developed markets.
RWX, in contrast, holds 121 securities spread across a diverse range of geographies. Japan is the largest country, accounting for approximately 29%, followed by the United Kingdom at roughly 13%. Three of its largest holdings are Mitsui Fudosan Co Ltd (8801.T), Swiss Prime Site Reg (SIX:SPSN.SW), and Scentre Group (ASX:SCG.AX).
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Some investors have a favorable outlook for real estate in 2026 following stabilizing interest rates and the potential for more rate cuts later this year. International exposure through RWX may offer better values, which may explain why RWX has outperformed U.S.-focused real estate funds over the past year.
Over a longer holding period, investors may find a lot to like about GQRE. It is focused on the U.S. real estate market, which may add more ballast through higher-quality REITs than RWX. This seemed to pay off for investors in recent years, with GQRE outperforming RWX since March 2021.
GQRE also offers a slightly lower cost and higher yield, which is a powerful advantage for investors. These amounts can seem small, but it adds up over several years.
RWX would mainly suit investors seeking greater international exposure, particularly if they see non-U.S. real estate as undervalued right now.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Tower and Prologis. The Motley Fool has a disclosure policy.
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