iShares REET vs FlexShares GQRE: Which REIT Fund Wins?
2026-09-03 00:15
•John Ballard •The Motley Fool
••• • Axe Cap view
REET vs GQRE: Which Global REIT ETF Suits SA Investors?
iShares REET offers better liquidity and cost-efficiency for South African investors, while FlexShares GQRE targets income with higher yields but more risk.
Global real estate ETFs are drawing fresh interest from JSE investors looking to diversify beyond local property names like Growthpoint and Redefine. Among these, iShares REET stands out by combining a low expense ratio of just 0.14% with a sizeable $5 billion asset base, making it easy to trade through local brokers offering offshore access. Its steady performance and lower volatility also mesh well with South African investors who want smoother returns amid rand currency swings. FlexShares GQRE, on the other hand, boasts a more attractive 4.3% dividend yield but comes with higher costs (0.45%) and a bumpier ride that may test nerves during rand weakness or global shocks. For rand-sensitive portfolios, REET’s superior liquidity and lower fee drag are big pluses. The main risk to this view is a sudden global real estate downturn or persistent rand depreciation, both of which could hurt returns across the board. this is just our opinion and not financial advice
Prefer buying iShares REET as a core global REIT holding via rand-hedged offshore access, trimming exposure to higher-cost, higher-volatility options like GQRE unless income is your top priority.
- REET
- USD/ZAR
- Global real estate market correction
- Rand depreciation increasing offshore costs
6/10
iShares Global REIT ETF (REET) emerges as the better choice for most investors, offering superior liquidity, lower expense ratio (0.14% vs 0.45%), and stronger 1-year performance (7.5% vs 11.2%). FlexShares Global Quality Real Estate Index Fund (GQRE) appeals primarily to income-focused investors with its higher dividend yield of 4.3% versus 3.4%, though it carries higher volatility and lower historical returns.
Our take is based on reporting first published by The Motley Fool.