VNQ vs. REET: Which Real Estate ETF Is the Better Buy for Income Investors?

The choice between the Vanguard Real Estate ETF (VNQ) and the Shares Global REIT ETF (REET) for income investors largely comes down to geography and how each fund’s exposure has behaved recently. VNQ tracks U.S. real estate companies, while REET provides global coverage, including developed and emerging markets. Both funds target REITs and have low fees, with VNQ slightly cheaper at a 0.13% expense ratio versus REET’s 0.14%. VNQ also offers a modestly higher trailing dividend yield. Over the past five years, REET posted higher returns than VNQ and saw a somewhat smaller maximum drawdown. Launched in 2004, VNQ holds 143 stocks, while REET, launched in 2014, holds 318. The article frames U.S. REITs as pressured by higher interest rates, while international REIT performance may differ, potentially explaining REET’s smoother ride.