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REIT ETFs: Yield vs. Cost Showdown
4 Sep
Summary
- iShares fund offers lower cost, FlexShares boasts higher yield.
- Both ETFs provide global real estate market exposure.
- Top holdings include Welltower, Prologis, and Equinix.
Investors evaluating global real estate exchange-traded funds (ETFs) face a choice between the iShares Global REIT ETF (REET) and the FlexShares Global Quality Real Estate Index Fund (GQRE). The iShares fund, launched in 2014, tracks the FTSE EPRA/NAREIT Global REIT Index and holds 316 securities, offering broad market exposure with a 0.14% expense ratio and a 3.4% yield.
In contrast, the FlexShares fund, established in 2019, follows the Northern Trust Global Quality Real Estate Index, holding 214 securities. It appeals to income-seeking investors with a 4.2% yield, though its expense ratio is not specified. Both ETFs provide diversification benefits, with top holdings including Welltower, Prologis, and Equinix, representing significant portions of their portfolios.
