REET vs SPY

REET vs SPY

Which is better, REET or SPY?

Mid Cap Value against Large Cap Blend.

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 42.9%.

Lower Fees: SPYHigher Returns: SPYLess Concentrated: SPY

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricREETSPY
Expense Ratio0.14%0.09%Best
AUM$4.9B$804.7B
Dividend Yield3.25%0.98%
Holdings352505
YTD Return+6.97%+12.09%Best
1Y Return+6.73%+16.29%Best
3Y Return (annualized)+9.39%+21.20%Best
5Y Return (annualized)+1.83%+13.37%Best
Volatility (annualized)16.9%14.8%Best
Max Drawdown-44.6%-34.1%Best
$10,000 over 5 years$10,949$18,728Best
Top 10 Weight42.9%37.8%Best
Fund FamilyiShares by BlackRock (US)State Street Investment Management
CategoryEquityEquity
StyleMid Cap ValueLarge Cap Blend
InceptionJul 8, 2014Jan 22, 1993

Volatility and max drawdown are measured over the window both funds cover: Jul 10, 2014 to Sep 18, 2026 (12.2 years).

REET vs SPY growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 12.2 years both funds cover.

REET vs SPY Performance

iShares Global REIT ETF (REET) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year REET returned +6.73% while SPY returned +16.29%. Year to date, REET is up 6.97% versus a gain of 12.09% for SPY.

Over three years, REET compounded at +9.39% per year against +21.20% for SPY; over five years the annualized figures are +1.83% and +13.37% respectively. Across the full 12-year window we track, SPY has the edge at +12.44% annualized vs +1.87%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

REET has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 14.8% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -44.6% for REET and -34.1% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

REET charges 0.14% per year while SPY charges 0.09%. On a $10,000 position that is $14 vs $9 annually, a gap of $5 per year that compounds over a long holding period. On income, REET currently yields 3.25% against 0.98% for SPY.

Holdings Overlap

REET already in SPY50.9%
SPY already in REET1.4%

50.9% of REET's money is in holdings SPY also owns. 1.4% of SPY's money is in holdings REET also owns.

The two portfolios partly overlap.

23 positions in common, counted across the 317 positions we hold weights for in REET and 504 in SPY, against full books of 352 and 505.

What only one of them owns

Our book lists 474 positions for SPY that do not appear in our book for REET (98.0% of the fund), and 72 for REET that do not appear in SPY (18.5%).

Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.

Top Shared Holdings

StockWeight in REETWeight in SPYDifference
WELLWelltower, Inc.9.19%0.26%8.93%
PLDPrologis Inc7.29%0.20%7.09%
EQIXEquinix Inc. Real Estate Investment Trust5.67%0.15%5.52%
DLRDigital Realty Trust Inc.3.70%0.10%3.60%
ORealty Income Corp.3.15%0.09%3.06%
PSAPublic Storage2.84%0.08%2.76%
EQRVivmark Residential2.73%0.07%2.66%
VTRVentas  Inc .2.43%0.07%2.36%
IRMIron Mtn Inc New Com Npv1.88%0.05%1.83%
EXRExtra Space Storage Inc.1.63%0.05%1.58%

50.9% of REET is already inside SPY.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

REETSPY

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, REET or SPY?

REET has an expense ratio of 0.14% while SPY charges 0.09%. SPY is the cheaper option, by $5 a year on a $10,000 investment.

Which performed better, REET or SPY?

Over the past year REET returned +6.73% vs +16.29% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (12 years), REET annualized +1.87% vs +12.44% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, REET or SPY?

REET has been the more volatile fund at 16.9% annualized versus 14.8% for SPY. Worst drawdown: REET -44.6% vs SPY -34.1%.

Should I hold both REET and SPY?

REET and SPY have a monthly-return correlation of 0.76, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between REET and SPY?

50.9% of REET's money is in holdings SPY also owns. 1.4% of SPY's is in holdings REET also owns. They hold 23 positions in common, counted across the 317 positions we hold weights for in REET and 504 in SPY.

Which pays a higher dividend, REET or SPY?

REET yields 3.25% while SPY yields 0.98%, so REET currently pays the higher dividend yield.

Is SPY better than REET?

SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 37.8% of the fund in its ten largest positions against 42.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.