Vanguard Real Estate ETF (VNQ) boasts lower fees and higher assets compared to State Street SPDR Dow Jones REIT ETF (RWR), with both offering a 4.0% yield and similar top holdings. VNQ’s broader mix includes non-REIT companies, leading to a slightly deeper drawdown and trailing RWR on five-year returns.

RWR focuses solely on REITs from the Dow Jones U.S. Select REIT Capped Index, while VNQ tracks a wider real estate universe, aiming to replicate the MSCI US Investable Market Real Estate 25/50 Index. VNQ’s lower expense ratio of 0.13% versus RWR’s 0.25% could attract cost-conscious investors.

In terms of holdings, VNQ has 158 stocks with a mix of real estate, communication services, and cash, including top positions like Welltower, Prologis, and American Tower. RWR is more narrowly focused on 102 real estate companies, including Welltower, Prologis, and Simon Property Group.

The difference lies in VNQ’s broader sector mix capturing property-adjacent businesses, while RWR stays strictly within REITs. VNQ’s versatility appeals to long-term stability, while RWR’s focused REIT approach may attract investors seeking a more concentrated real estate play.

Read more at Yahoo Finance: Broad Real Estate Exposure or a Defined REIT Allocation