XLRE VS REET
4 min read
By Ron Koren, ETF Insider

XLRE VS REET

Exchange-Traded Funds (ETFs) have transformed the investment landscape by providing investors with a diversified and cost-effective way to gain exposure to various sectors and asset classes. In this article, we will conduct an in-depth comparison between two prominent Real Estate ETFs: XLRE (Real Estate Select Sector SPDR Fund) and REET (iShares Global REIT ETF). We'll explore critical aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.

XLRE Vs REET: Overview

XLRE and REET are both Real Estate ETFs, but they have distinct investment strategies and areas of focus within the real estate market. XLRE tracks the Real Estate Select Sector Index and is comprised of companies involved in real estate development, management, and ownership. On the other hand, REET offers global exposure to Real Estate Investment Trusts (REITs), spanning various countries and industries. This distinction in focus leads to differences in risk and potential returns that we'll delve into further.

XLRE Vs REET: Sectors and Top Holdings

The XLRE ETF is primarily concentrated in sectors such as real estate management and development, residential and commercial REITs, and real estate services. Its top holdings include familiar names like American Tower Corp, Prologis Inc, and Crown Castle International Corp. In contrast, REET encompasses a broader spectrum of sectors, including office, residential, industrial, and retail real estate across different geographical regions. Analyzing the sectors and top holdings aids investors in choosing the ETF that aligns with their investment objectives.

XLRE  overlap XLRE VS REETXLRE overlap XLRE VS REET

XLRE Vs REET: Capitalization and Investment Strategy

XLRE boasts a substantial asset under management (AUM), reflecting its popularity among investors seeking exposure to the US real estate sector. Its strategy revolves around mirroring the performance of the Real Estate Select Sector Index. REET, on the other hand, seeks to provide global exposure to the performance of the Dow Jones Global Select Real Estate Securities Index. The difference in capitalization and investment strategy between these ETFs presents varying opportunities and risks for investors to consider.

XLRE Vs REET: Tracking Methods and Exposure

XLRE aims to provide investors with exposure to the US real estate sector by closely tracking the Real Estate Select Sector Index. In contrast, REET's goal is to offer a global perspective on real estate by tracking the Dow Jones Global Select Real Estate Securities Index. Understanding these tracking methods and exposure strategies helps investors make informed decisions based on their risk tolerance and geographical preferences.

Conclusion

XLRE and REET are two distinct Real Estate ETFs that cater to investors' preferences for exposure within the real estate market. For those interested in diving deeper into their holdings, correlations, overlaps, and various insights, ETF Insider offers an exceptional tool for exploration. With its user-friendly app, ETF Insider provides extensive details on these ETFs and other financial instruments, empowering investors with the information they need to make informed choices.

Disclaimer: This article does not provide any investment advisory services.

Sources:

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FAQ

  • Why is XLRE better than REET?

    XLRE may be considered better than REET for some investors due to its specific focus, offering diversification.

  • Does REET beat XLRE?

    REET's performance relative to XLRE will vary over time, depending on market conditions.

  • Should I invest in XLRE or REET?

    The choice between XLRE and REET should align with your investment goals, risk tolerance, and desired exposure.

  • Are XLRE and REET good investments?

    Both XLRE and REET can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between XLRE and REET?

    The correlation between XLRE and REET can vary over time, reflecting differences in performance.