RWX vs. HAUZ: Which International Real Estate ETF Is the Better Buy?

• RWX costs much than HAUZ and offers a little dividend yield.

• RWX posted a stronger 1-year instrumentality but some funds showed akin 5-year drawdowns.

• HAUZ has 3 times arsenic galore holdings arsenic RWX.

• These 10 stocks could mint the adjacent question of millionaires ›

SPDR Dow Jones International Real Estate ETF (NYSEMKT:RWX) charges a higher disbursal ratio and holds less stocks compared to Xtrackers International Real Estate ETF (NYSEMKT:HAUZ), which has a little interest and a higher yield.

Both RWX and HAUZ people planetary existent property exposure, but their approaches and profiles differ. This examination examines cost, yield, returns, risk, liquidity, and portfolio operation to assistance investors find which enactment champion aligns with their objectives.

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

RWX has an disbursal ratio of 0.59%, which is six times higher than HAUZ's disbursal ratio of 0.10%, and pays a little dividend yield.

RWX tracks the Dow Jones Global ex-U.S. Select Real Estate Securities Index, focusing connected planetary existent estate. The money is astir 2 decades aged and has 120 holdings, with apical positions successful Mitsui Fudosan Co., Scentre Group, and Swiss Prime Site.

HAUZ, by contrast, offers overmuch broader vulnerability with 408 holdings, according to its underlying index. Its largest positions include Goodman Group, Mitsui Fudosan, and Mitsubishi Estate Company. For investors seeking broader diversification crossed planetary spot companies, HAUZ whitethorn beryllium an appealing option.

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Since 2013, HAUZ has grown its full returns by 3.3% annually, compared to RWX's 1.4% implicit the aforesaid period. A bully information of this outperformance comes from the information that HAUZ's disbursal ratio is astir one-sixth of RWX's 0.59% figure, on with its dividend output being fractional a percent constituent higher. HAUZ delivered these outsize returns with a smaller five-year drawdown, broader diversification, and larger plus basal arsenic well.

Considering that 5 of the ETF's apical 10 holdings are the same, it appears that HAUZ is simply a wide winner, acknowledgment to its amended outgo efficiency, stronger income generation, amended humanities returns, and broader diversification. However, investors should enactment that HAUZ and RWX each dedicate 24% and 30% of their holdings to Japanese REITs, respectively, truthful it is indispensable to beryllium alert of this focus. Similarly, HAUZ's second-largest state allocation is Australia astatine 13% and RWX's is the U.K. astatine 14% -- truthful investors volition privation to beryllium comfy having vulnerability to these countries earlier they invest.