REET vs HAUZ: Global Real Estate ETF Showdown
2026-07-21 22:26
•John Ballard •The Motley Fool
••• •• Axe Capital view
Global Real Estate ETFs: REET Outshines HAUZ for Now
REET’s broader U.S. exposure and size currently make it a stronger play than HAUZ in global real estate ETFs.
REET’s performance over the past year and five years shows that including U.S. real estate giants like Welltower and Prologis continues to pay off. Its larger assets under management (AUM) mean better liquidity, which is important if you ever want to exit quickly. HAUZ’s appeal lies in a lower fee and a higher dividend yield, but its lower total returns and higher volatility hint that you might pay for that income with more risk and less growth. Given South Africa’s interest rates are stabilizing but remain relatively high, global income streams matter, but so does safety. For local investors, REET offers a clearer pathway, especially if the rand weakens against the dollar—dividend payments in USD can help offset that. Still, if global interest rates spike unexpectedly, both ETFs could suffer. With a tick in favour of REET’s track record and scale, it earns the nod today. this is just my opinion and not financial advice
I’d lean towards buying REET for a solid mix of income and growth, while watching HAUZ as a defensive income complement if you prefer yield. Avoid overweighting HAUZ until it proves it can close the performance gap.
- REET
- HAUZ
- USD/ZAR
- Interest rates rising sharply globally
- Rand strengthening sharply, reducing USD income advantage
6/10
The iShares Global REIT ETF (REET) and Xtrackers International Real Estate ETF (HAUZ) offer different approaches to real estate investing. REET includes U.S. exposure and delivered 19% returns over one year, while HAUZ focuses on international markets with a lower expense ratio (0.10% vs 0.14%) and higher dividend yield (3.57% vs 3.26%). REET has outperformed over both one- and five-year periods despite HAUZ's cost advantages, with both funds benefiting from stabilizing interest rates.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: John Ballard
Categories: Rates, Equities, Capital Returns
Tickers: REET, HAUZ
Sentiment: Positive - REET demonstrated superior performance with 19.05% one-year returns and stronger five-year growth ($1,146 vs $957 on $1,000 invested). Its larger AUM ($5.0B) provides better liquidity, and inclusion of U.S. real estate giants like Welltower and Prologis positions it well for diversified exposure. HAUZ offers cost advantages with a lower expense ratio (0.10%) and higher dividend yield (3.57%), making it attractive for income-focused investors. However, its 5.26% one-year return and higher maximum drawdown (-34.20%) indicate underperformance relative to REET, positioning it as a complementary rather than superior option.
Keywords: real estate ETFs, REIT, global real estate, dividend yield, expense ratio, international markets, portfolio diversification, interest rates
Insights:
- REET: Positive: REET demonstrated superior performance with 19.05% one-year returns and stronger five-year growth ($1,146 vs $957 on $1,000 invested). Its larger AUM ($5.0B) provides better liquidity, and inclusion of U.S. real estate giants like Welltower and Prologis positions it well for diversified exposure.
- HAUZ: Neutral: HAUZ offers cost advantages with a lower expense ratio (0.10%) and higher dividend yield (3.57%), making it attractive for income-focused investors. However, its 5.26% one-year return and higher maximum drawdown (-34.20%) indicate underperformance relative to REET, positioning it as a complementary rather than superior option.