iShares Global REIT ETF (NYSEMKT:REET) offers broader global exposure and a lower fee, while iShares Select U.S. REIT ETF (NYSEMKT:ICF) focuses on a concentrated U.S. REIT lineup with higher volatility and lower yields.

Both REET and ICF track real estate investment trusts, but their approaches differ: REET casts a wide net across global markets, while ICF focuses on a select group of large-cap U.S. REITs. This comparison unpacks their costs, risk profiles, and portfolio makeup to help investors decide which may better match their real estate allocation goals.

Metric

REET

ICF

Issuer

IShares

IShares

Expense ratio

0.14%

0.32%

1-yr return (as of 2026-03-16)

6.5%

4.2%

Dividend yield

3.5%

2.7%

Beta

0.95

0.98

AUM

$4.6 billion

$2.0 billion

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.

ICF charges about double the annual fee of REET, making REET the more affordable option for cost-conscious investors. REET also offers a higher payout, with a 3.5% yield versus ICF’s 2.7%.

Metric

REET

ICF

Max drawdown (5 y)

-32.14%

-34.75%

Growth of $1,000 over 5 years

$1,004

$1,117

ICF is built around just 30 U.S. real estate investment trusts and has a long track record, with 25.1 years since its launch. Its top holdings include Equinix Reit Inc (NASDAQ:EQIX), Welltower Inc (NYSE:WELL), and American Tower Reit Corp (NYSE:AMT), which together account for a substantial slice of the fund. This concentrated approach leads to sector purity—100% real estate—with no exposure to international markets or other sectors. The fund goes ex-dividend on March 17, 2026.

In contrast, REET owns 325 holdings spanning both developed and emerging markets, offering exposure to a wider variety of property types and geographies. Its top positions—Welltower Inc, Prologis Reit Inc (NYSE:PLD)Equinix Reit Inc—reflects its global focus, though there is overlap with ICF. REET’s diversification may appeal to those seeking broader real estate exposure and less single-market risk.

For more guidance on ETF investing, check out the full guide at this link.

Many investors choose to diversify their investment portfolios by adding a real estate component, which is a smart choice. Real estate exchange-traded funds (ETFs) are often the best choice. Here’s how two prominent real estate ETFs, iShares Global REIT ETF (REET) and iShares Select U.S. REIT ETF (ICF), compare to one another.

To begin, let’s talk about REET. This fund wins the head-to-head matchup on several key factors. For one, it has a lower expense ratio (0.14% vs. 0.32%). It also has a higher dividend yield (3.5% vs. 2.7%). Finally, it has performed better over the last year (6.5% vs. 4.2%).

However, there are areas where ICF excels. For one, it is more concentrated, which will appeal to some investors, particularly because those 30 holdings are U.S. REITs. In addition, the fund boasts a higher five-year return than REET.

In summary, both REET and ICF should be considered by investors seeking real estate exposure for their portfolio. As is most often the case, the choice will be a personal one, guided by individual investment preferences.

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Jake Lerch has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Tower, Equinix, and Prologis. The Motley Fool has a disclosure policy.

REET Delivers a Higher Yield, But ICF Provides Greater Exposure to the U.S. REIT Market was originally published by The Motley Fool