From The Motley Fool · Sara Appino · · 1m 10s
State Street RWO vs iShares REET: Which Real Estate ETF Wins?
Long-term investors should pick iShares REET over State Street RWO for lower fees and better scale.
In brief
Long-term investors should pick iShares REET over State Street RWO for lower fees and better scale. iShares REET's lower expense ratio and larger assets make it the better choice for long-term real estate investors. Originally reported by The Motley Fool.
RWO vs REET: Key Differences
State Street SPDR Dow Jones Global Real Estate ETF (RWO) offers broader global exposure at a higher cost than iShares Global REIT ETF (REET).
Performance Comparison
Both funds have similar 1-year returns (5.2% for REET, 6.2% for RWO) and comparable dividend yields (3.6% vs 3.5%).
Cost Structure
REET charges 0.14% expense ratio versus RWO's 0.5%, making REET significantly cheaper for long-term investors.
Portfolio Holdings
RWO focuses on 90% real estate with smaller cash and consumer cyclical exposures, while REET has balanced retail, industrial, and healthcare REITs.
Market Context
Real estate investors face pressure from high mortgage costs and Fed rate hikes in 2026, making cost efficiency critical.
Why REET Wins
REET's lower fees, larger assets ($4.6B vs $1.2B), and simpler structure make it the better choice for long-term investors.
The bottom line
iShares REET's lower expense ratio and larger assets make it the better choice for long-term real estate investors.
