REET vs. VWO
REET (iShares Global REIT ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - REET is a REIT fund tracking the FTSE EPRA/NAREIT Global REIT Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, REET returned 4.31%/yr vs 9.11%/yr for VWO. At a 0.49 correlation, their price movements are largely independent. REET charges 0.14%/yr vs 0.08%/yr for VWO.
Performance
REET vs. VWO - Performance Comparison
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Returns By Period
In the year-to-date period, REET achieves a 11.91% return, which is significantly lower than VWO's 13.17% return. Over the past 10 years, REET has underperformed VWO with an annualized return of 4.31%, while VWO has yielded a comparatively higher 9.11% annualized return.
REET
- 1D
- -0.45%
- 1M
- 3.64%
- YTD
- 11.91%
- 6M
- 12.27%
- 1Y
- 15.63%
- 3Y*
- 9.84%
- 5Y*
- 2.76%
- 10Y*
- 4.31%
VWO
- 1D
- 2.17%
- 1M
- 4.11%
- YTD
- 13.17%
- 6M
- 15.35%
- 1Y
- 29.26%
- 3Y*
- 16.84%
- 5Y*
- 5.83%
- 10Y*
- 9.11%
REET vs. VWO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
REET iShares Global REIT ETF | 11.91% | 7.97% | 2.65% | 10.28% | -24.10% | 32.43% | -10.48% | 24.42% | -5.27% | 7.48% |
VWO Vanguard FTSE Emerging Markets ETF | 13.17% | 25.60% | 10.59% | 9.25% | -17.98% | 1.26% | 15.17% | 20.75% | -14.76% | 31.49% |
Correlation
The correlation between REET and VWO is 0.37, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.37 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.45 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.48 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Jul 10, 2014 | 0.49 |
The correlation between REET and VWO shifts across timeframes, from 0.37 (1 year) to 0.49 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
REET vs. VWO — Risk / Return Rank
REET
VWO
REET vs. VWO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Global REIT ETF (REET) and Vanguard FTSE Emerging Markets ETF (VWO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| REET | VWO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.49 | ||
| Sortino ratioReturn per unit of downside risk | -0.65 | ||
| Omega ratioGain probability vs. loss probability | 1.23 | 1.33 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 1.74 | 2.63 | -0.90 |
| Martin ratioReturn relative to average drawdown | 6.23 | 9.28 | -3.04 |
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Drawdowns
REET vs. VWO - Drawdown Comparison
The maximum REET drawdown since its inception was -44.59%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for REET and VWO.
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Drawdown Indicators
| REET | VWO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -44.59% | -67.68% | +23.09% |
Max Drawdown (1Y)Largest decline over 1 year | -9.04% | -11.17% | +2.13% |
Max Drawdown (3Y)Largest decline over 3 years | -18.02% | -17.37% | -0.65% |
Max Drawdown (5Y)Largest decline over 5 years | -32.11% | -32.60% | +0.49% |
Max Drawdown (10Y)Largest decline over 10 years | -44.59% | -36.39% | -8.20% |
Current DrawdownCurrent decline from peak | -0.45% | -0.57% | +0.12% |
Average DrawdownAverage peak-to-trough decline | -9.76% | -15.80% | +6.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.51% | 3.16% | -0.65% |
Volatility
REET vs. VWO - Volatility Comparison
The current volatility for iShares Global REIT ETF (REET) is 4.20%, while Vanguard FTSE Emerging Markets ETF (VWO) has a volatility of 6.98%. This indicates that REET experiences smaller price fluctuations and is considered to be less risky than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| REET | VWO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.20% | 6.98% | -2.78% |
Volatility (6M)Calculated over the trailing 6-month period | 9.09% | 14.18% | -5.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.29% | 16.62% | -4.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.97% | 17.51% | -0.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.85% | 19.24% | -0.39% |
REET vs. VWO - Expense Ratio Comparison
REET has a 0.14% expense ratio, which is higher than VWO's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
REET vs. VWO - Dividend Comparison
REET's dividend yield for the trailing twelve months is around 4.04%, more than VWO's 2.38% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
REET iShares Global REIT ETF | 4.04% | 3.67% | 3.64% | 3.27% | 2.43% | 3.18% | 2.65% | 5.25% | 5.73% | 3.84% | 5.37% | 3.56% |
VWO Vanguard FTSE Emerging Markets ETF | 2.38% | 2.79% | 3.20% | 3.52% | 4.11% | 2.63% | 1.91% | 3.23% | 2.88% | 2.30% | 2.52% | 3.26% |
Frequently Asked Questions
REET and VWO have a correlation of 0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VWO has higher volatility (6.98%) compared to REET (4.20%). In terms of maximum drawdown, REET dropped -44.59% vs VWO's -67.68%.
On 10-year performance, VWO leads with 9.11% vs 4.31% for REET. On fees, VWO is cheaper at 0.08% per year. On volatility, REET has been the lower-risk option at 4.20%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VWO has performed better with a 9.11% return vs 4.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VWO is cheaper with a 0.08% expense ratio, compared with 0.14% for REET.
REET has the higher dividend yield at 4.04%, compared with 2.38% for VWO.
REET is categorized as REIT, while VWO is Emerging Markets Equities. REET tracks FTSE EPRA/NAREIT Global REIT Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.14% for REET and 0.08% for VWO.
VWO currently has the higher Sharpe Ratio (1.77 vs 1.28), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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