In the realm of global real estate exchange-traded funds, Xtrackers International Real Estate ETF (HAUZ) and iShares Global REIT ETF (REET) stand out as notable options, each catering to investors seeking exposure to property companies and real estate investment trusts (REITs) on an international scale. Despite similarities in their focus on listed real estate, these two funds exhibit pronounced differences in expense structures, portfolio compositions, geographic allocations, and performance metrics that warrant detailed consideration.
Cost Structures and Fund Scale
HAUZ offers an expense ratio of 0.10%, making it more cost-effective on an annual basis compared to REET, which charges 0.14%. This modest difference in fees, while relatively small, may accrue meaningfully over time for investors prioritizing cost efficiency. In terms of size and liquidity, REET holds a clear advantage with assets under management (AUM) exceeding $4 billion and a longer tenure in the market (over 11 years). HAUZ's AUM stands at roughly $941 million, reflecting a smaller but still substantive presence in the ETF landscape.
Return and Yield Performance
Looking at recent performance, HAUZ has delivered a notable 17.2% total return over the 12 months ending December 26, 2025, outperforming REET’s 3.6% return for the same period. This higher return aligns with HAUZ’s dividend yield of 3.91%, slightly surpassing REET’s yield of 3.7%. These figures illustrate that HAUZ has provided stronger income and capital appreciation recently, despite its smaller scale.
Volatility and Risk Measures
Assessing risk profiles, both funds show relatively comparable volatility, with beta values of 0.89 for HAUZ and 0.96 for REET, reflecting price movements somewhat less volatile than the broader S&P 500. Over a five-year horizon, maximum drawdowns were similar, with HAUZ experiencing a greater peak-to-trough decline of 34.53%, marginally deeper than REET’s 32.09%. These risk indicators highlight that both ETFs are subject to typical fluctuations inherent in the real estate sector.
Portfolio Composition and Geographic Allocation
Despite a shared focus on real estate, the funds’ portfolio construction differs significantly. REET tracks a global index predominantly consisting of REITs, with a portfolio of 328 stocks and a pronounced tilt toward U.S.-based real estate firms. It holds sizable positions in major U.S. REITs such as Welltower Inc, Prologis Reit Inc, and Equinix Reit Inc, which constitute a significant share of fund assets. This concentration reflects REET’s alignment with dominant U.S. real estate market dynamics, while also benefiting from the liquidity and scale that come with such large holdings.
Conversely, HAUZ provides broader geographic diversification by including 408 holdings spread more evenly across developed markets outside the United States. Leading investments in the fund encompass companies like Goodman Group in Australia and Mitsui Fudosan and Mitsubishi Estate in Japan. This global dispersion reduces dependence on any single national property market and introduces varied economic and policy-driven factors into the portfolio’s performance.
Both funds steer clear of leverage, currency hedging strategies, and other financial engineering techniques that could complicate their risk profiles or returns. This simplicity offers clearer exposure to underlying property markets with a focus on primary real estate sectors, though HAUZ does exhibit marginal allocations to communication services and industrials.
Investment Considerations
Investors inclined toward real estate ETFs should carefully assess how these structural differences translate into portfolio implications. REET’s U.S.-centric concentration makes it well-suited for those wanting global real estate exposure that remains closely correlated to U.S. REIT market movements and interest rate environments. Its scale and liquidity also facilitate smoother trading and potential for narrower bid-ask spreads.
On the other hand, HAUZ appeals to investors seeking international real estate exposure that captures growth cycles and interest rate trends beyond the U.S., incorporating property markets influenced by different economic conditions and policy regimes. This geographic diversification diversifies portfolio risk linked to U.S. real estate fluctuations but may come at the expense of lower liquidity and fund size.
Ultimately, the choice between these funds hinges on whether an investor’s strategy favors a global real estate portfolio anchored predominantly to U.S. REITs or one that embraces a more evenly balanced international footprint with a significant developed-market presence outside North America.
Key Points
- HAUZ offers a lower expense ratio and slightly higher dividend yield than REET, along with stronger recent one-year returns.
- REET has a larger asset base and greater liquidity, with a concentrated portfolio focusing on major U.S. REITs.
- HAUZ provides broader geographic diversification, emphasizing developed real estate markets outside the U.S., including Australia and Japan.
Risks and Uncertainties
- REET’s performance is closely tied to U.S. real estate market conditions and interest rate fluctuations, potentially increasing exposure to domestic economic shifts.
- HAUZ’s broader international focus introduces risks related to divergent economic cycles and policy regimes, which may lead to less correlated returns but also increased complexity.
- Liquidity differences between the two funds could affect trading costs and the ability to execute large transactions efficiently.
Disclosure
This analysis is based solely on publicly available fund metrics and performance data as of December 26, 2025. Investors should consider their individual investment objectives and risk tolerance before selecting either ETF.