VNQI vs. HAUZ: These ETFs Offer Investors Exposure to Real Estate Around the World

• VNQI holds much stocks and offers a somewhat higher yield, but HAUZ has delivered a amended 1-year return.

• Both funds person little communal dividend payout frequencies.

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Both the Vanguard Global ex-U.S. Real Estate ETF (NASDAQ:VNQI) and Xtrackers International Real Estate ETF (NYSEMKT:HAUZ) connection vulnerability to existent property companies extracurricular the United States, appealing to investors seeking planetary diversification beyond home spot markets. This examination highlights however each fund’s cost, performance, assemblage mix, and hazard illustration could substance for those weighing an allocation to planetary existent property equities.

*Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

Both funds person precise akin metrics, with HAUZ having somewhat little capitalist expenses. But VNQI does borderline retired HAUZ successful presumption of dividend yield.

VNQI focuses connected planetary existent estate, excluding the U.S., holding 742 assets arsenic of Jan. 8, 2025. Top holdings see Goodman Group (ASX:GMG.AX), Mitsui Fudosan Co., Ltd. (JPX:8801.T), and Mitsubishi Estate Co., Ltd. (JPX:8802.T). The money has been successful beingness for astir 15 years and is the largest planetary existent property ETF successful presumption of full assets, trailing lone the iShares Global REIT ETF (NYSEMKT:REET).

HAUZ has a precise akin constitution to VNQI. However, the HAUZ is 3 years younger and excludes companies from Pakistan and Vietnam, on with the U.S., contributing to the money having astir 300 less full holdings than VNQI.

With precise akin metrics and performance, either ETF is an perfect enactment for those who are looking to put successful planetary existent estate. However, 1 of the biggest things investors should beryllium alert of is the payout frequence of each of these ETFs.

The astir communal payout frequence for dividends crossed each assets is quarterly. But with HAUZ, dividends person been historically paid retired semiannually, resulting successful lone 2 dividend payments per year. And with VNQI, the money switched from quarterly to yearly payments successful 2023. The payment of little predominant paid dividends is that investors person a larger lump sum payment, which should beryllium higher than the emblematic quarterly outgo wrong the sector. For those who'd alternatively put successful planetary existent property ETFs with quarterly dividend payouts, they tin hunt for akin ETFs specified arsenic the SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO) and REET.