Written by Sara Appino for The Motley Fool->
FlexShares Global Quality Real Estate Index Fund provides exposure to United States property markets while Xtrackers International Real Estate ETF strictly avoids them.
Xtrackers International Real Estate ETF maintains a significantly lower expense ratio and larger assets under management than FlexShares Global Quality Real Estate Index Fund.
FlexShares Global Quality Real Estate Index Fund has delivered higher total returns over the last five years but comes with higher price volatility.
Investors choosing between FlexShares Global Quality Real Estate Index Fund (NYSEMKT:GQRE) and Xtrackers International Real Estate ETF (NYSEMKT:HAUZ) must decide if they want global exposure or a pure-play international diversifier.
Real estate investment trusts (REITs) provide income and inflation protection. While both funds target the property sector, they differ fundamentally in geographic scope. HAUZ focuses on markets outside the United States, whereas GQRE includes domestic holdings alongside international developers. This comparison hinges on whether an investor wants global or purely international exposure.
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. Dividend yield is the trailing-12-month distribution yield.
The Xtrackers fund is the more affordable option with its 0.10% expense ratio. While the FlexShares fund offers higher 1-year returns, it carries a 4.20% yield, sitting just below the 4.30% payout of HAUZ. Investors should weigh these fees against the broader geographic reach provided by GQRE.
FlexShares Global Quality Real Estate Index Fund focuses on global property markets through the Northern Trust Global Quality Real Estate Index. With 178 holdings, its largest positions include American Tower (NYSE:AMT) at 6.00%, Prologis (NYSE:PLD) at 4.31%, and Welltower (NYSE:WELL) at 4.01%. This fund launched in 2013 and has a trailing-12-month dividend of $2.75 per share.
Xtrackers International Real Estate ETF tracks an index of developed and emerging markets excluding the United States, and holds 411 positions. Its largest holdings include Goodman Group at 4.42%, Mitsubishi Estate at 3.42%, and Mitsui Fudosan at 2.99%. Also launched in 2013, HAUZ has a trailing-12-month dividend of $1.04 per share.
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Real estate has staged a meaningful comeback in early 2026 as interest rate pressure eases and investors rotate back into income-generating assets. Both GQRE and HAUZ offer exposure to that recovery, but through very different lenses.
GQRE is a global fund spanning U.S. and international real estate, but with a distinctive twist. Rather than simply tracking a market-cap index, it screens holdings for quality, value, and momentum, selecting companies with strong profitability, sound management, and healthy cash flow. That active-leaning methodology gives it a higher yield than most passive real estate funds, but also a significantly higher fee.
HAUZ takes the opposite approach. It’s purely passive, purely international, excluding U.S. properties entirely. It holds more than 400 real estate securities across Japan, Australia, and Europe at a fraction of GQRE's cost.
For investors who already hold U.S. real estate exposure, HAUZ is the cleaner, more cost-efficient international diversifier. GQRE suits those who want a single global real estate fund with a quality filter built in and are willing to pay for that added rigor.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Tower and Prologis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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