The State Street SPDR Dow Jones REIT ETF (NYSEMKT:RWR) offers a lower-cost, U.S.-focused alternative to the globally diversified State Street SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO).
Selecting between these two real estate funds often comes down to a preference for domestic focus versus global reach. While both products are issued by State Street, they provide distinct lenses into the property market, ranging from the concentrated U.S. REIT sector to a more expansive portfolio of international and emerging market real estate companies that may provide broader diversification benefits.
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.
Cost is a significant differentiator here, as the State Street SPDR Dow Jones REIT ETF charges a 0.25% expense ratio, making it half as expensive as its global peer. While the yield gap is minimal, investors focused on maximizing net returns may find the lower fee structure of the domestic fund more appealing over the long run.
Performance & risk comparison
What’s inside
State Street SPDR Dow Jones REIT ETF tracks the Dow Jones U.S. Select REIT Capped Index, providing investors with a portfolio focused 100% on U.S. Real Estate. The fund currently manages 95 holdings, predominantly U.S.-based real estate investment trusts. Its largest positions include Welltower (NYSE:WELL) at 10.01%, Prologis (NYSE:PLD) at 9.96%, and Simon Property Group (NYSE:SPG) at 4.53%. This domestic strategy provides a liquid way to target U.S. commercial and residential property trends. It was launched in 2001. State Street SPDR Dow Jones REIT ETF has paid $3.77 per share over the trailing 12 months, which on its recent ~$112.67 share price works out to a 3.4% yield.
State Street SPDR Dow Jones Global Real Estate ETF seeks to track the Dow Jones Global Select Real Estate Securities IndexSM, offering a 100% Real Estate tilt but with a larger pool of 221 holdings. This fund includes international developed and emerging markets alongside U.S. equities. Its largest positions include Welltower at 10.54%, Prologis at 7.30%, and Equinix (NASDAQ:EQIX) at 6.12%. Companies in the index must meet specific size and revenue requirements, ensuring they are primarily focused on owning and operating real estate. It was launched in 2008. State Street SPDR Dow Jones Global Real Estate ETF has paid $1.63 per share over the trailing 12 months, which on its recent ~$49.25 share price works out to a 3.3% yield.
