Both the Vanguard Global ex-U.S. Real Estate ETF(VNQI 0.96%) and iShares Global REIT ETF (REET +0.10%) target global real estate equities, providing exposure to real estate investment trusts (REITs) worldwide. This comparison highlights their differences in cost, performance, risk, and portfolio composition, helping investors assess which may better fit their needs.
Snapshot (cost & size)
| Metric | VNQI | REET |
|---|---|---|
| Issuer | Vanguard | IShares |
| Expense ratio | 0.12% | 0.14% |
| 1-yr return (as of Jan. 8, 2026) | 19.58% | 6.65% |
| Dividend yield | 4.58% | 3.62% |
| *Beta | 0.71 | 0.97 |
| AUM | $3.53 billion | $4.33 billion |
*Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns.
Both ETFs are low-cost, though VNQI is slightly more affordable by 0.02 percentage points. VNQI offers a higher dividend yield, which may appeal to income-focused investors seeking a larger return from real estate equities.
Performance & risk comparison
| Metric | VNQI | REET |
|---|---|---|
| Max drawdown (5 y) | -35.76% | -32.09% |
| Growth of $1,000 over 5 years | $857 | $1,053 |
What's inside
Established in 2014, REET is the largest global real estate ETF by total assets and average volume, currently holding 377 assets worldwide (as of Jan. 8, 2026). Its largest positions are Welltower (WELL +1.35%), Prologis (PLD +0.44%), and Equinix (EQIX +0.32%), which together account for nearly 20% of its total assets.
VNQI, in contrast, does not include any U.S. real estate stocks and REITS in its holdings, and instead primarily focuses on developed international markets, especially in the Asia-Pacific and European regions. Its top holdings include Goodman Group (ASX:GMG.AX), Mitsui Fudosan Co., Ltd. (JPX:8801.T), and Mitsubishi Estate Co., Ltd. (JPX:8802.T). The ETF has 742 total holdings, with no single asset accounting for more than 4% of its weight, making its diversification more even than top-heavy.
What this means for investors
VNQI has a higher dividend yield, more total holdings, and had a very strong year in 2025. However, there are a few things investors should be aware of when comparing the fund to REET.
Outside of no U.S. assets in its holdings, the ETF has had a 5-year price change of -12.7%, compared to REET increasing 8.3% in that span. In addition, VNQI pays out dividends annually, which is less frequent than REET's quarterly payments, and the annual dividend is more of a lump sum payment. The payout ratio of the iShares ETF also has a 96% dividend payout ratio, nearly 25% higher than Vanguard's, which shows that the REET fund is more committed to returning profits to investors.
For those who don't mind having less exposure to the U.S. real estate market and seek short-term gains, VNQI appears more ideal. But for exposure to all global real estate assets, more consistent payouts, and long-term gains, REET may be the better option.
Glossary
ETF: Exchange-traded fund that holds a basket of assets and trades like a stock.
Expense ratio: Annual fund operating costs expressed as a percentage of the fund's average assets.
Dividend yield: Annual dividends paid by a fund divided by its current share price.
REIT: Real estate investment trust, a company owning or financing income-producing real estate.
Beta: Measure of an investment’s volatility compared with the overall stock market, often the S&P 500.
AUM: Assets under management; total market value of all assets a fund manages.
Max drawdown: Largest peak-to-trough decline in an investment’s value over a specified period.
Total return: Investment performance including price changes plus all dividends and distributions, assuming reinvestment.
Developed markets: Economically advanced countries with mature financial systems and stable regulatory environments.
Holdings: Individual securities or positions owned within an investment fund’s portfolio.
For more guidance on ETF investing, check out the full guide at this link.
