The FlexShares Global Quality Real Estate Index Fund (GQRE) and iShares Global REIT ETF (REET) both target global real estate equities and REITs worldwide. GQRE has a higher expense ratio of 0.45% compared to REET’s 0.14%, but GQRE currently yields higher returns and dividends. GQRE also outperforms REET in price gains over 12-month and 5-year periods.
REET, established in 2014, is the largest global real estate ETF by total assets. Its top holdings include Welltower, Prologis, and Equinix, making up approximately 20% of its total holdings. GQRE, created a year earlier, focuses on higher-quality real estate assets with top holdings like American Tower Corporation, Digital Realty Trust, and Public Storage.
Investors should note that GQRE tracks the Northern Trust Global Quality Real Estate Index, selecting securities based on value, momentum, and quality factors like profitability and management efficiency. Despite market turbulence, GQRE has outperformed REET in both price gains and total returns. GQRE is designed for long-term capital appreciation and risk mitigation.
For those interested in ETF investing, GQRE may be a more ideal choice for better performance, while REET offers a lower expense ratio and broader real estate exposure. Depending on investment goals, either ETF may suit individual preferences. It’s essential to consider factors like expense ratio, performance, and portfolio composition before making a decision on which ETF to invest in.
Read more at Yahoo Finance: The Rising ETF Against the Largest Global Real Estate ETF
