iShares U.S. REIT ETF Outperforms Vanguard Global ex-U.S. Real Estate ETF on AI-Driven Data Center Exposure

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โดย The Motley Fool·Read original
Summary · why it matters

The iShares Select U.S. REIT ETF has delivered a 13.50% total return over the trailing 12 months, far outpacing the 1.80% return of the Vanguard Global ex-U.S. Real Estate ETF, as the U.S. fund benefits from holdings in data center REITs tied to artificial intelligence infrastructure. The iShares fund, which carries a 0.32% expense ratio and a 2.50% dividend yield, holds a concentrated portfolio of 30 large-cap U.S. REITs, with top positions including Welltower at 8.22%, Equinix Reit at 7.83%, and Prologis Reit at 7.69%. In contrast, the Vanguard fund offers broad international diversification across 682 holdings, a lower expense ratio of 0.12%, and a higher dividend yield of 4.80%, but its focus on traditional real estate has lagged the AI-driven performance of its domestic counterpart. Over five years, a $1,000 investment in the iShares fund grew to $1,173, while the same amount in the Vanguard fund declined to $943, though both experienced similar maximum drawdowns of around 34%. The analysis suggests that while Vanguard’s lower cost and higher yield may appeal to value-oriented investors, the iShares fund’s exposure to the AI opportunity could lead to stronger long-term total returns.

Impact on stocks 3

Cloud & Digital Infrastructure▲ · 1 stocks
Equinix Inc
EQIX
▲ PositiveDemandrelevance

Equinix is a data center REIT benefiting from AI-driven demand for data center infrastructure.

Real Estate▲ · 1 stocks
Prologis Inc
PLD
▲ PositiveDemandrelevance

Prologis is a data center REIT benefiting from AI-driven demand for data center infrastructure.

Aging Population▲ · 1 stocks

Theme Impact 2

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