Which Real Estate ETF Is the Better Buy: State Street’s XLRE or Northern Trust’s Global GQRE?

State Street Real Estate Select Sector SPDR ETF (NYSEMKT:XLRE) offers lower costs and concentrated S&P 500 exposure, while Northern Trust Global Quality Real Estate ETF (NYSEMKT:GQRE) provides broader global diversification and a higher yield.

These two funds target the real estate sector but take different paths to reach their goals. One focuses on a narrow slice of the largest U.S. companies, while the other casts a wider net across international markets to capture quality real estate income.

Snapshot (cost & size)

Metric	GQRE	XLRE
Issuer	FlexShares	SPDR
Share price	$60.38 (as of 2026-10-23)	$42.57 (as of 2026-10-23)
Expense ratio	0.46%	0.08%
1-yr return (as of Oct. 23, 2026)	3.2%	3.7%
Dividend yield	4.4%	3.4%
Beta	0.89	0.95
AUM	$0.4 billion	$8.0 billion

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.

State Street Real Estate Select Sector SPDR ETF is more affordable for long-term holders with an expense ratio of 0.08%. In contrast, Northern Trust Global Quality Real Estate ETF charges 0.46% but offers a higher dividend payout.

Performance & risk comparison

Metric	GQRE	XLRE
Max drawdown (5 yr)	(35.1%)	(34.1%)
Growth of $1,000 over 5 years (total return)	$1,016	$1,058

What's inside

State Street Real Estate Select Sector SPDR ETF is entirely focused on the real estate sector, holding 30 positions. Its largest positions include Welltower (NYSE:WELL) at 11.62%, Prologis (NYSE:PLD) at 8.17%, and Equinix (NASDAQ:EQIX) at 6.40%. It was launched in 2015. State Street Real Estate Select Sector SPDR ETF has paid $1.44 per share over the trailing 12 months, which on its recent ~$42.6 share price works out to a 3.4% yield.

Northern Trust Global Quality Real Estate ETF allocates 99% to real estate and 1% to consumer cyclicals, spreading its capital across 201 holdings. Its largest positions include Prologis at 6.76%, Welltower at 5.37%, and Equinix at 4.16%. It was launched in 2013. Northern Trust Global Quality Real Estate ETF has paid $2.65 per share over the trailing 12 months, which on its recent ~$60.4 share price works out to a 4.4% yield.

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Which looks like the better buy

Real estate has had a challenging stretch as the Federal Reserve resumed rate hikes in 2026, keeping borrowing costs elevated and putting pressure on property valuations. In that environment, cost efficiency and income matter more than usual for real estate investors.

XLRE is one of the cheapest ways to own U.S. real estate, concentrating in roughly 30 of the largest S&P 500 REITs. Its rock-bottom fee and massive scale make it the default choice for investors who want straightforward domestic property exposure.

The real comparison gets interesting when you look at what GQRE brings to the table. Its quality screen selects real estate companies based on value, momentum, and profitability rather than simply buying the biggest names. That process has produced a yield nearly 50% higher than XLRE and incorporates international real estate exposure that purely domestic funds miss entirely.

XLRE is the stronger choice for investors who want low-cost U.S. REIT exposure and are not concerned about international diversification. GQRE earns its higher fee for income-focused investors who want a quality-screened global portfolio and are prepared to pay more for that combination.

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.