The State Street Real Estate Select Sector SPDR ETF (NYSEMKT:XLRE) offers a low-cost, U.S.-concentrated alternative to the global reach and higher fee structure of the State Street SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO).
Investors weighing real estate exposure often choose between domestic concentration and international diversification. While both funds are managed by State Street Global Advisors, they target different benchmarks. This analysis evaluates whether the low-cost, large-cap focus of one fund outweighs the broad, multi-country reach of the other for long-term income seekers.
Snapshot (cost & size)
|
Metric |
RWO |
XLRE |
|---|---|---|
|
Issuer |
SPDR |
SPDR |
|
Expense ratio |
0.5% |
0.08% |
|
1-yr return (as of June 12, 2026) |
15.8% |
11.1% |
|
Dividend yield |
3.30% |
3.1% |
|
Beta |
0.90 |
0.96 |
|
AUM |
$1.24B |
$7.95B |
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.
The cost difference is significant. XLRE charges a lean 0.08% annually, while RWO carries a 0.5% expense ratio. Despite the higher fee, RWO provided a slightly higher trailing-12-month dividend yield of 3.2% compared to 3.1% for its peer.
Performance & risk comparison
|
Metric |
RWO |
XLRE |
|---|---|---|
|
Max drawdown (5 yr) |
(32.9%) |
(34.1%) |
|
Growth of $1,000 over 5 years (total return) |
$1,118 |
$1,177 |
What’s inside
The State Street Real Estate Select Sector SPDR ETF (NYSEMKT:XLRE) offers a concentrated portfolio of 31 holdings, primarily targeting the real estate sector within the S&P 500. Its allocation includes 98% real estate and 2% basic materials. This fund, which launched in 2015, focuses on U.S. firms and has a trailing-12-month dividend of $1.40 per share. Its largest positions include Welltower Inc. (NYSE:WELL) at 9.93%, Prologis Inc. (NYSE:PLD) at 9.25%, and Equinix Inc. (NASDAQ:EQIX) at 6.93%. This narrow focus limits geographic diversification but ensures exposure to the most prominent American property companies.
The State Street SPDR Dow Jones Global Real Estate ETF (NYSEMKT:RWO) provides a more expansive approach with roughly 220 holdings across U.S., developed international, and emerging markets. Its portfolio is composed of 89% real estate, 7% cash and others, and 1% consumer cyclical. Launched in 2008, it has a trailing-12-month dividend of $1.62 per share. Top holdings include Welltower Inc. (NYSE:WELL) , Prologis Inc. (NYSE:PLD)and Equinix Inc.(NASDAQ:EQIX). By tracking a global index, RWO captures price movements from international real estate cycles that XLRE ignores.