State Street SPDR Dow Jones REIT ETF

RWR

Market cap $1.78B

The REIT sector closed out 2025 with a tough December (-1.48%) and finishing the year with a -3.57% total return for 2025. Small caps (+0.51%) eked out a small gain in December, while mid caps (-1.77%), large caps (-2.55%) and micro caps (-3.88%) fell at the close of the year. 42.04% of REIT securities had a positive total return in December with only 38.36% in the black for the full year.

RWR charges a higher expense ratio but delivers a higher dividend yield than SCHH. Both funds are pure-play U.S. REIT portfolios with similar top holdings, but RWR holds fewer securities.

Everything says REITs should be soaring — but they aren't. A hidden headwind is quietly holding returns back. One overlooked niche is where I am pouring my REIT capital.

SCHH charges a much lower expense ratio but offers a smaller dividend yield compared to RWR. RWR edges out SCHH on five-year total returns and has a slightly shallower historical drawdown.

Vanguard Real Estate ETF charges lower fees and holds a much larger pool of assets than State Street SPDR Dow Jones REIT ETF Both ETFs yield 4.0% and share similar top holdings, but VNQ includes more companies outside pure real estate VNQ has experienced a slightly deeper five-year drawdown and trailed RWR on five-year total returns These 10 Stocks Could Mint the Next Wave of Millionaires ›

The SPDR Dow Jones REIT ETF (NYSEARCA:RWR) occupies an unusual space in the REIT universe.

The REIT sector returned to positive territory in November (+1.02%) after back-to-back months in the red. Mid caps (+3.53%) led the REIT sector in November followed by small caps (+3.38%) and large caps (+0.32%); micro caps (-8.76%) badly underperformed. 68.15% of REIT securities had a positive total return in November.

Year-to-date returns across the REIT market varied remarkably, with large gains from non-U.S. REITs and U.S. healthcare REITs, while U.S. residential and data center sectors were notable laggards. In the last three years, there have been two major forces impacting the performance of equity markets and real estate. Today's public REIT market looks a lot different than what most investors expect. Sectors previously considered niche have grown to be essential in today's economy and society.

The REIT sector has seen back-to-back tough months as it saw a modest average negative total return in September (-0.73%) and fell deeper into the red in October (-4.03%). Small cap REITs (-5.05%) had the worst performance in October. Micro caps (-2.81%), mid caps (-3.11%) and large caps (-4.45%) were also in negative territory albeit to a smaller degree. Only 21.66% of REIT securities had a positive total return in October.

For any retiree nervous about the current state of the market, not only do they have a good reason to be skeptical about short-term growth, but they also have every reason to want to protect their downside.