GQRE vs. REET: The Rising ETF Against the Largest Global Real Estate ETF

• REET carries a overmuch little disbursal ratio and much assets nether absorption than GQRE.

• GQRE offers higher returns and dividend yield.

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Both the FlexShares Global Quality Real Estate Index Fund (NYSEMKT:GQRE) and iShares Global REIT ETF (NYSEMKT:REET) people planetary existent property equities, providing vulnerability to existent property companies and existent property concern trusts (REITs) worldwide. This examination highlights their differences successful cost, performance, risk, and portfolio composition, helping investors measure which whitethorn amended acceptable their needs.

*Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns.

GQRE costs investors 3 times much successful expenses than REET, but it presently (as of Jan. 8) yields higher returns and dividends.

Established successful 2014, REET is the largest planetary existent property ETF by full assets and mean volume, presently holding 377 assets astir the world. Its largest positions are Welltower (NYSE:WELL), Prologis  (NYSE:PLD), and Equinix (NASDAQ:EQIX), collectively making up astir 20% of the ETF's full holdings.

Created astir a twelvemonth earlier, GQRE shares akin holdings with REET, but its apical 3 see American Tower Corporation (NYSE:AMT), Digital Realty Trust (NYSE:DLR), and Public Storage (NYSE:PSA). With 150 full holdings, GQRE is designed to maximize higher-quality existent property assets than the emblematic planetary existent property ETF.

Investors should beryllium alert of the criteria GQRE uses for its holdings. The ETF tracks the Northern Trust Global Quality Real Estate Index (NTGQRE), an underlying scale that selects securities wrong the existent property assemblage based connected value, momentum, and a prime origin that comprises an investigation of profitability, absorption efficiency, and currency flow. The nonsubjective with Northern Trust's strategy is to prolong semipermanent superior appreciation portion mitigating risk.

This criteria seems to beryllium palmy for GQRE adjacent passim a turbulent existent property market, which has impacted gains of assorted assets wrong the sector. In some 12-month and 5-year spans, GQRE has outperformed REET successful presumption of terms gains. Its terms is besides presently astir 20% higher since inception successful 2013, portion REET's is lone up 0.68% since 2014. For amended performance, GQRE is presently the much perfect investment. But if investors similar a little disbursal ratio and broader existent property exposure, REET whitethorn beryllium much suitable.