FlexShares’ GQRE offers a 4.3% dividend yield versus REET’s 0.14% expense ratio, reflecting differing risk and income strategies.
The iShares Global REIT ETF (REET) and FlexShares Global Quality Real Estate Index Fund (GQRE) offer distinct approaches to global real estate exposure. REET, with an expense ratio of 0.14%, tracks a broad index of developed- and emerging-market REITs, while GQRE employs a quality-focused methodology but charges 0.45% in fees.
GQRE’s higher yield of 4.3% appeals to income investors, though its historical drawdown and volatility exceed REET’s. The fund holds 178 securities, including top positions in American Tower (AMT), Prologis (PLD), and Welltower (WELL), with a 2.4% cash allocation. REET’s lower beta suggests reduced price volatility relative to the S&P 500.
Investors face a trade-off between cost efficiency and yield, with GQRE’s quality screen targeting stability but at a premium expense.