Comparing State Street Real Estate Select Sector SPDR ETF (XLRE -1.55%) and State Street SPDR Dow Jones Global Real Estate ETF (RWO -1.34%) reveals a choice between broad global diversification and low-cost, concentrated domestic exposure.
Real estate investment trusts (REITs) can provide income and may benefit from rent growth over time, but they remain sensitive to interest rates, financing costs, and property cycles. While XLRE targets the largest U.S. firms within the S&P 500, RWO provides a global footprint by including international and emerging markets. Both funds come from State Street, yet they serve different strategic roles in a portfolio.
Snapshot (cost & size)
| Metric | RWO | XLRE |
|---|---|---|
| Issuer | SPDR | SPDR |
| Share price | $49.71 (as of 2026-06-30) | $44.03 (as of 2026-06-30) |
| Expense ratio | 0.50% | 0.08% |
| 1-yr return (as of 2026-06-30) | 16.60% | 10.00% |
| Dividend yield | 3.20% | 3.20% |
| Beta | 0.98 | 0.97 |
| AUM | $1.25B | $8.1B |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
XLRE is notably more affordable with a 0.08% expense ratio compared to 0.50% for RWO. Despite the price difference, both funds provide a 3.20% yield, offering comparable income potential for real estate investors.
Performance & risk comparison
| Metric | RWO | XLRE |
|---|---|---|
| Max drawdown (5 yr) | (32.80%) | (34.10%) |
| Growth of $1,000 over 5 years (total return) | $1,150.0 | $1,170.0 |
What's inside
The State Street Real Estate Select Sector SPDR ETF (XLRE -1.55%) tracks the Real Estate Select Sector Index, focusing on S&P 500 companies excluding mortgage REITs. It holds 31 positions. Top holdings include Welltower (WELL -0.23%) at 10.89%, Prologis (PLD -1.41%) at 8.77%, and Equinix (EQIX -2.04%) at 7.25%. The fund was launched in 2015. State Street Real Estate Select Sector SPDR ETF has paid $1.41 per share over the trailing 12 months, which on its recent ~$44.03 share price works out to a 3.20% yield.
The State Street SPDR Dow Jones Global Real Estate ETF (RWO -1.34%) follows the Dow Jones Global Select Real Estate Securities Index, covering owners and managers of commercial or residential properties. It manages 226 holdings. Its largest positions include Welltower (WELL -0.23%) at 9.37%, Prologis (PLD -1.41%) at 7.55%, and Equinix (EQIX -2.04%) at 6.24%. The fund was launched in 2008. State Street SPDR Dow Jones Global Real Estate ETF has paid $1.60 per share over the trailing 12 months, which on its recent ~$49.71 share price works out to a 3.20% yield.
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What this means for investors
When deciding between XLRE and RWO, it helps to think about how you want to invest in real estate. XLRE is a low-cost fund that focuses on real estate companies in the S&P 500, rather than covering all U.S. REITs. RWO, on the other hand, includes property companies from both the U.S. and international markets.
XLRE’s results are tied mainly to large U.S. real estate companies and the domestic forces that drive them, including rent growth, occupancy, financing costs, and real estate valuations. RWO provides exposure to developed and emerging-market real estate companies, but that access is not free. Investors pay a much higher expense ratio and take on currency exposure, regional property-market risk, and different interest-rate cycles. Its global label should also not be mistaken for a completely separate portfolio, since several of its largest holdings overlap with XLRE.
The key consideration for investors is whether RWO’s broader exposure justifies its higher fee and added complexity. XLRE is more suitable for investors seeking low-cost S&P 500 real estate sector exposure. RWO is appropriate for those who want international listed real estate and are comfortable with additional currency and regional risks. Both funds are real estate equity ETFs, so interest rates, property cycles, and market sentiment will continue to influence returns.
