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State Street’s RWO or iShares’ REET: Which Global Real Estate ETF Should Long-Term Investors Choose?
Key Points
iShares Global REIT ETF is significantly more cost-efficient with an expense ratio of 0.14% compared to 0.5% for the State Street fund.
Both ETFs maintain similar dividend yields near 3.5% and share top holdings like Welltower and Prologis.
State Street SPDR Dow Jones Global Real Estate ETF has delivered a higher 1-year total return, though iShares Global REIT ETF shows slightly better 5-year growth.
State Street SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO) offers broader global exposure at a higher cost than the iShares Global REIT ETF (NYSEMKT:REET), which focuses on index-based efficiency.
Real estate investment trusts (REITs) offer a convenient path to property ownership without the high entry costs or management burdens of physical real estate. By comparing these two global ETFs, investors can weigh the benefits of a low-cost, broad-market approach against a more seasoned fund with slightly different sector weightings and performance history.
Snapshot (cost & size)
| Metric | REET | RWO |
|---|---|---|
| Issuer | iShares | SPDR |
| Share price | $25.89 (as of 2026-10-15) | $46.72 (as of 2026-10-15) |
| Expense ratio | 0.14% | 0.5% |
| 1-yr return (as of 2026-10-15) | 5.2% | 6.2% |
| Dividend yield | 3.6% | 3.5% |
| Beta | 0.91 | 0.89 |
| AUM | $4.6B | $1.2B |
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.
The most striking difference lies in the cost of ownership. The iShares fund is significantly more affordable with a 0.14% expense ratio, while the SPDR fund carries a higher 0.5% fee. While the cost profiles differ, both funds offer comparable income, with yields of 3.6% and 3.5% respectively.
Performance & risk comparison
| Metric | REET | RWO |
|---|---|---|
| Max drawdown (5 yr) | (32.1%) | (32.9%) |
| Growth of $1,000 over 5 years (total return) | $1,058 | $1,045 |
What's inside
State Street SPDR Dow Jones Global Real Estate ETF provides exposure to publicly traded real estate companies that own and operate commercial or residential properties. Its portfolio is heavily concentrated in the Real Estate sector at 90%, with smaller slices for Cash & Others at 7% and Consumer Cyclical at 1%. With 224 holdings, its largest positions include Welltower Inc (NYSE:WELL) at 10.49%, Prologis Inc (NYSE:PLD) at 7.48%, and Equinix Inc (NASDAQ:EQIX) at 6.09%. It was launched in 2008. The State Street SPDR Dow Jones Global Real Estate ETF has paid $1.63 per share over the trailing 12 months, which on its recent ~$46.7 share price works out to a 3.5% yield.
iShares Global REIT ETF tracks the FTSE EPRA/NAREIT Global REIT Index, offering a more diversified approach with 317 holdings. The fund's sector breakdown is relatively balanced between Retail Reits at 18%, Industrial REITs at 18%, and Health Care REITs at 17%. Top holdings include Welltower at 9.79%, Prologis Reit at 6.95%, and Equinix Reit at 5.67%. It was launched in 2014. The iShares Global REIT ETF has paid $0.93 per share over the trailing 12 months, which on its recent ~$25.9 share price works out to a 3.6% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
Real estate investors have had a tough road in 2026. With the Federal Reserve raising rates again and mortgage costs near multi-year highs, property valuations remain under pressure. For investors who still want real estate exposure in this environment, choosing the right vehicle and keeping costs low matters more than ever.
Both RWO and REET turn out to be remarkably similar. Both hold roughly 72% U.S. real estate alongside international exposure, pay nearly identical yields, and have delivered virtually the same returns over the past year. The top holdings appear in both portfolios. At first glance, choosing between them feels like a coin flip.
Then you look at the fee. REET charges less than a third of what RWO does, one of the wider cost gaps between two funds this similar in any asset class. Over a decade of compounding, that difference adds real money back into your pocket without sacrificing anything in return.
REET wins on cost, scale, and simplicity for most long-term investors. RWO's case rests on its longer history and a slightly broader real estate mandate that goes beyond strict REIT structures.
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.