GQRE vs REET: Which Global Real Estate Investment ETF Wins in 2026?

When it comes to global real estate investment exposure through ETFs, two names keep dominating the conversation: FlexShares Global Quality Real Estate Index Fund (GQRE) and iShares Global REIT ETF (REET). But here’s the thing—just because they chase the same asset class doesn’t mean they’ll deliver the same returns or fit your portfolio equally well.

The Performance Showdown: GQRE Takes the Crown

Let’s cut straight to the returns. Since inception, GQRE has crushed it compared to REET. GQRE’s price has soared roughly 20% from its 2013 launch, while REET limps along with just 0.68% gains since 2014. Over the past five years, a $1,000 investment in GQRE would’ve grown to approximately $1,053, outperforming REET in both the 12-month and 5-year windows.

As of early January 2026, GQRE delivered a 7.08% one-year return versus REET’s 6.65%. The dividend yield gap is even wider: GQRE yields 4.66% annually compared to REET’s 3.62%. That extra income could really add up for dividend-focused investors seeking global real estate investment returns.

The Cost Factor: REET’s Major Advantage

Here’s where REET flexes. With a 0.14% expense ratio, REET charges investors roughly one-third the cost of GQRE’s 0.45% annual fee. Over decades, that difference compounds significantly, potentially saving thousands on a six-figure portfolio.

REET also dominates in sheer scale. With $4.33 billion in assets under management versus GQRE’s $342.55 million, REET is the undisputed heavyweight in the global real estate investment ETF space. Its established track record since 2014 and trading volume make it the safer default choice for passive investors.

Risk Profile: Nearly Identical Twins

Both ETFs display similar volatility metrics. GQRE carries a beta of 0.96 while REET matches at 0.97, meaning they move in lockstep with the S&P 500. The maximum drawdown during market downturns tells a comparable story—GQRE experienced a -35.08% peak-to-trough decline over five years versus REET’s -32.09%. Translation: similar risk exposure despite different approaches.

What Sets Them Apart: Quality vs. Breadth

GQRE holds just 150 assets but applies a quality filter built on Northern Trust’s methodology. The index analyzes profitability, management efficiency, and cash flow generation—basically hunting for real estate companies that are actually good at managing money. Its top three holdings reflect this strategy:

• American Tower Corporation (AMT): $82B in market cap, tower infrastructure specialist
• Digital Realty Trust (DLR): Data center real estate play capitalizing on AI infrastructure demand
• Public Storage (PSA): Self-storage behemoth with pricing power

REET, by contrast, holds 377 assets providing broader exposure. Its heavyweights include:

• Welltower (WELL)
• Prologis (PLD)
• Equinix (EQIX)

These three make up roughly 20% of REET’s portfolio. The wider diversification means less concentration risk but potentially diluted returns.

The Verdict: Your Financial Goals Matter

Choose GQRE if:

• You want maximum performance potential in global real estate investment
• You’re comfortable with a concentrated quality-focused approach
• Higher dividend yields appeal to you
• You’ve got a long-term horizon to justify the higher fee

Choose REET if:

• Lower fees are your priority (0.14% vs 0.45% is genuinely meaningful long-term)
• You prefer broader exposure across 377 global real estate holdings
• You value the stability of $4.3B+ in established AUM
• You want simpler, broader global real estate investment access without quality filtering

Neither is “wrong”—GQRE plays the performance game better, while REET offers the cost and stability advantage. Your move depends on whether you’re optimizing for returns or fees.