America’s Real Estate Leaders or Global Stock Markets? XLRE competes with RWO
I State Street Real Estate Select Sector SPDR ETF (NYSEMKT:XLRE) offers a low-cost, US-focused alternative to global reach and a high cost structure State Street SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO).
Investors weighing real estate exposure often choose between domestic concentration and international diversification. Although both funds are managed State Street Global Advisorstarget different benchmarks. This analysis examines whether the low-cost, capital-intensive focus of one fund outweighs the broad, multi-country reach of another for long-term investors.
Summary (cost and size)
|
Metric |
RWO |
XLRE |
|---|---|---|
|
The issuer |
The SPDR |
The SPDR |
|
Cost estimate |
0.5% |
0.08% |
|
1 year refund (from June 12, 2026) |
15.8% |
11.1% |
|
Return yield |
3.30% |
3.1% |
|
Beta |
0.90 |
0.96 |
|
AUM |
$1.24B |
$7.95B |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-year return represents the total return over the next 12 months. The return yield is the distribution yield trailing 12 months.
The cost difference is significant. XLRE charges a measly 0.08% annually, while RWO has an expense ratio of 0.5%. Despite the high charge, RWO offered a slightly higher trailing 12-month dividend yield of 3.2% compared to 3.1% for its peers.
Performance & risk comparison
|
Metric |
RWO |
XLRE |
|---|---|---|
|
Maximum limit (5 years) |
(32.9%) |
(34.1%) |
|
$1,000 growth over 5 years (total return) |
$1,118 |
$1,177 |
What’s inside
I State Street Real Estate Select Sector SPDR ETF (NYSEMKT:XLRE) offers a concentrated portfolio of 31 properties, primarily targeting the real estate sector within the S&P 500. Its portfolio includes 98% real estate and 2% fundamentals. The fund, founded in 2015, focuses on US firms and has a trailing 12-month dividend of $1.40 per share. Its major positions include Company Welltower Inc. (NYSE: GOOD) 9.93% percent Company Prologis Inc. (NYSE:PLD) by 9.25% again Company Equinix Inc. (NASDAQ:EQIX) reached 6.93%. This narrow focus limits geographic diversification but ensures exposure to America’s leading real estate companies.
I State Street SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO) offers an expansive approach with approximately 220 properties across the US, developed, and growing international markets. Its portfolio is made up of 89% real estate, 7% cash and other, and 1% consumer discretionary. Launched in 2008, it has a fixed term dividend and an annual yield of R1.62 per share. The top handle includes Company Welltower Inc. (NYSE: GOOD) , Company Prologis Inc. (NYSE:PLD)again Company Equinix Inc.(NASDAQ:EQIX). By tracking a global index, RWO captures price movements from the international real estate cycle that XLRE ignores.
