U.S. Real Estate Leaders or Global Property Markets? XLRE vs. RWO
Key takeaways
- Investors weighing real estate exposure often choose between domestic concentration and international diversification.
- Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns.
- XLRE charges a lean 0.08% annually, while RWO carries a 0.5% expense ratio.
XLRE ^GSPC The State Street Real Estate Select Sector SPDR ETF (NYSEMKT:XLRE) offers a low-cost, U.S.-concentrated alternative to the global reach and higher fee structure of the State Street SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO).
Investors weighing real estate exposure often choose between domestic concentration and international diversification. While both funds are managed by State Street Global Advisors, they target different benchmarks. This analysis evaluates whether the low-cost, large-cap focus of one fund outweighs the broad, multi-country reach of the other for long-term income seekers.
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.