Choosing Between REET and HAUZ: Which Global Real Estate ETF Matches Your Portfolio?

The Real Estate ETF Puzzle: Why One Size Doesn’t Fit All

When you’re hunting for global real estate exposure, two ETFs keep popping up: iShares Global REIT ETF (REET) and Xtrackers International Real Estate ETF (HAUZ). Both track property companies worldwide, yet they tell very different stories about where property markets are heading. The key question isn’t which is “better”—it’s which aligns with your bet on global real estate cycles.

Speed vs. Depth: A Quick Performance Snapshot

Here’s where the divergence starts. As of late December 2025, HAUZ crushed it on the one-year return with 17.2%, while REET lagged at 3.6%. HAUZ also flexes a higher dividend yield (3.91% vs. 3.7%).

On paper, HAUZ looks leaner too—an expense ratio of 0.10% compared to REET’s 0.14%. But scale tells another story. REET commands $4.04 billion in assets under management versus HAUZ’s $940.7 million, which translates to deeper liquidity and tighter bid-ask spreads when you’re moving real money.

Looking at longer-term stability, REET showed lower downside risk over five years (32.09% max drawdown vs. HAUZ’s 34.53%), though a $1,000 investment in HAUZ five years ago would’ve grown less impressively than the same amount in REET.

Under the Hood: Where These Funds Actually Invest

REET’s Play: The U.S. REIT Anchor

REET holds 328 real estate securities but leans heavily on American titans. Its top three holdings—Welltower Inc, Prologis Inc, and Equinix Inc—command a disproportionate chunk of the fund. This concentration means REET’s performance is essentially glued to U.S. property sentiment. When Federal Reserve policy shifts, U.S. interest rates move, or American commercial real estate cycles, REET moves with them. You get global diversification on paper, but your returns dance to an American tune.

HAUZ’s Approach: Geography as a Feature

HAUZ spreads 408 holdings across developed markets outside the U.S., with serious weightings toward Australian and Japanese property giants like Goodman Group, Mitsui Fudosan, and Mitsubishi Estate. Europe also gets meaningful representation. The upside? Your returns depend on multiple regional cycles—Australian property markets, Japanese urban development, European commercial dynamics—rather than betting everything on Fed policy or U.S. commercial real estate trends.

Volatility Profile: A Subtle but Real Difference

HAUZ carries a beta of 0.89 versus REET’s 0.96 (both measured against the S&P 500), meaning HAUZ swings slightly less with broader stock market turbulence. It’s not dramatic, but it matters when you’re building a balanced portfolio and want real estate that doesn’t mirror the equity market’s every move.

The Investment Decision: What Are You Actually Betting On?

Pick REET if: You want straightforward global real estate exposure that’s deeply liquid, backed by major U.S. property companies, and trades like blue-chip stocks. You’re comfortable with your returns being shaped by American REIT market dynamics and Fed policy. You value the familiarity and massive trading volume that $4+ billion in AUM provides.

Pick HAUZ if: You’re seeking real estate diversification that reduces your reliance on U.S. outcomes. You want exposure to property cycles that move independently—Japanese demographics driving Tokyo office demand, Australian logistics booming on regional trade, European cities evolving differently than American metros. You can tolerate lower liquidity in exchange for a different geographic tilt.

The Bottom Line

Both REET and HAUZ offer legitimate paths into global real estate. The real decision comes down to whether you want your property market exposure tethered to U.S. real estate trends or whether you prefer a more geographically distributed bet that captures different regional forces. REET is the familiar choice; HAUZ is the diversifier.