Which Global Real Estate ETF Is the Better Buy: State Street’s RWO or Xtrackers’ HAUZ?
2026-10-12 00:02
•Sara Appino •The Motley Fool
• •• Axe Cap view
Why HAUZ Beats RWO for Global Real Estate Exposure
Lower costs and genuine diversification make Xtrackers’ HAUZ a smarter choice than State Street’s RWO.
Global real estate ETFs look attractive for diversification beyond the rand and stocks, but not all are created equal. State Street’s RWO bills itself as global, yet half its holdings are U.S.-centric, diluting international benefits and charging five times more in fees than Xtrackers’ HAUZ. For investors focused on diversifying South African portfolios away from domestic risks, HAUZ’s spread across Japan, Europe, and Australia offers level-headed diversification and long-term value. Its 0.1% fee means more of your return stays in your pocket, an underappreciated advantage given the rand’s volatility. Still, if U.S. real estate enjoys a rare surge, RWO’s U.S. weight may outperform. But for steady exposure to global property markets without high costs, HAUZ is the stand-out. this is just our opinion and not financial advice
Prefer HAUZ over RWO for global real estate exposure, especially for rand-hedged portfolios seeking cost-efficient diversification. Trim RWO or avoid unless you want more U.S. real estate play in your basket.
- HAUZ
- RWO
- USD/ZAR
- U.S. real estate outperforms international markets unexpectedly
- sharp rand depreciation magnifies foreign asset volatility
6/10
The article compares two real estate ETFs: State Street's RWO, which claims to be global but holds over 50% in U.S. real estate, and Xtrackers' HAUZ, which focuses entirely on international markets. HAUZ offers a significantly lower expense ratio of 0.1% versus RWO's 0.5%, comparable long-term returns, and better diversification for investors seeking international real estate exposure. The analysis concludes HAUZ is the better choice for most long-term investors prioritizing cost efficiency and true international diversification.
Our take is based on reporting first published by The Motley Fool.