REET vs HAUZ: Which Real Estate ETF Is the Better Buy in 2026?

While iShares Global REIT ETF (NYSEMKT:REET) provides broad exposure to real estate markets worldwide, including the United States, Xtrackers International Real Estate ETF (NYSEMKT:HAUZ) limits its scope to international property markets with a lower fee.

Real estate investment trust (REIT) ETFs offer a simplified way for investors to gain exposure to income-producing properties like warehouses, apartments, and cell towers. REET serves as a one-stop global shop, whereas HAUZ targets investors who specifically want to diversify away from domestic U.S. real estate holdings.

Snapshot (cost & size)

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.

HAUZ is the more affordable option with a 0.1% expense ratio, while the iShares fund carries a slightly higher 0.14% fee. HAUZ also provides a higher payout with a 3.6% yield compared to 3.3% for the iShares fund.

Performance & risk comparison

What's inside

REET focuses its portfolio entirely on real estate, with a negligible allocation to financial services. The global mandate of the iShares fund provides exposure to the world's largest REIT market in the U.S. while maintaining a significant presence in international territories.

It holds 318 positions, and its largest positions include Welltower at 8.83%, Prologis at 7.22%, and Equinix at 5.71%.

The fund was launched in 2014. REET has paid $0.93 per share over the trailing 12 months, which, on its recent ~$28 share price, works out to a 3.3% yield.

HAUZ tracks the iSTOXX Developed and Emerging Markets ex USA PK VN Real Estate Index, allocating 96% to real estate with minor positions in industrials and communication services. This international focus helps investors offset domestic concentration while capturing growth in developed European and Asian property markets.

It holds 415 positions, and its top holdings include Goodman Group at 4.82%, Mitsubishi Estate at 3.15%, and Mitsui Fudosan at 2.77%.

The fund was launched in 2013. HAUZ has paid $0.82 per share over the trailing 12 months, which, on its recent ~$23 share price, works out to a 3.6% yield.

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Which looks like the better buy?

The better ETF largely comes down to each investor's diversification needs in real estate. An investor with no exposure may prefer REET. In contrast, an investor who is already heavily allocated to the U.S. real estate market may want to complement that investment with the international exposure HAUZ provides.

The iShares (REET) ETF has delivered a higher total return over the past five years, which includes a spike in interest rates and one of the weakest housing markets in years. REET's superior return can be largely attributed to its more global diversification, including the U.S. market.

The Xtrackers (HAUZ) ETF offers more international exposure with limited exposure to the U.S. market. North America accounts for only 7.7% of the fund's holdings.

The advantages of HAUZ are a lower expense ratio and higher yield, making it a better income-generating investment.

Aside from those considerations, the only reason I would buy HAUZ over REET is if I already held another ETF heavily weighted toward the U.S. market. In that scenario, HAUZ would complement a U.S. heavy allocation and provide diversification across the global real estate market.

However, if I were looking to buy just one of these ETFs as my only real estate investment, I would choose iShares (REET) for its global mandate.

John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Equinix, Goodman Group, and Prologis. The Motley Fool has a disclosure policy.