ICF vs. HAUZ: ICF Beats on Returns, but HAUZ Dominates on Fees and Yield
Key Points
Xtrackers International Real Estate ETF offers broad exposure to global property markets with a significantly lower expense ratio of 0.1%.
iShares Select U.S. REIT ETF concentrates on a small group of large-cap U.S. real estate investment trusts and has historical total return outperformance.
Xtrackers International Real Estate ETF provides a higher trailing dividend yield but has experienced negative returns over the past 12 months.
iShares Select U.S. REIT ETF (NYSEMKT:ICF) and Xtrackers International Real Estate ETF (NYSEMKT:HAUZ) provide distinct approaches to real estate, with one focusing on domestic leaders and the other spanning hundreds of international properties.
Investors often look to real estate investment trusts for income and potential diversification. Choosing between these funds involves weighing the stability and recent performance of the U.S. market against the broader reach and lower costs associated with international exposure. This analysis compares their costs, risk profiles, and portfolios.
Snapshot (cost & size)
| Metric | HAUZ | ICF |
|---|---|---|
| Issuer | Xtrackers | iShares |
| Share price (as of 10/23/26) | $21.44 | $65.77 |
| Expense ratio | 0.1% | 0.32% |
| 1-yr return (as of 10/23/26) | (6.9%) | 8.4% |
| Dividend yield | 3.8% | 2.6% |
| Beta | 1.01 | 0.97 |
| AUM | $1.1 billion | $2 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). 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, costing less than one-third of the iShares fund. Beyond the lower expense ratio, it also offers a higher payout for income seekers, with a yield of 3.8% compared to 2.6% for its counterpart.
Performance & risk comparison
| Metric | HAUZ | ICF |
|---|---|---|
| Max drawdown (5 yr) | (34.5%) | (34.7%) |
| Growth of $1,000 over 5 years (total return) | $886 | $1,071 |
What's inside
iShares Select U.S. REIT ETF focuses on a concentrated group of 30 holdings within the domestic market. Its largest positions include Welltower at 8.32%, Equinix at 7.8%, and American Tower at 7.6%. It was launched in 2001. iShares Select U.S. REIT ETF has paid $1.74 per share over the trailing 12 months, which on its recent ~$65.77 share price works out to a 2.6% yield.
Xtrackers International Real Estate ETF tracks hundreds of companies outside the United States, holding 410 securities in total. The portfolio consists primarily of real estate at 95%, with minor tilts toward communication services at 1.2% and consumer discretionary at 0.8%. Top holdings include Goodman Group at 4.2%, Mitsubishi Estate Co. Ltd. at 3.32%, and Mitsui Fudosan Co. Ltd. at 3%. It was launched in 2013. Xtrackers International Real Estate ETF has paid $0.82 per share over the trailing 12 months, which on its recent ~$21.44 share price works out to a 3.8% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
Investing in real estate investment trusts (REITs) can be a good way to diversify your portfolio, take advantage of generous dividend yields, and capitalize on long-term trends. ICF and HAUZ both hold large industrial and infrastructure REITs, making them appealing ways to play high-growth themes like healthcare, logistics, and data centers without choosing a singular company or product. Which ETF is the better buy?
HAUZ offers a bigger dividend yield and a lower expense ratio, which will likely appeal to income-focused investors. But do those characteristics make up for the fact that the ETF has dropped more than 11% on a total return basis over the last five years? If you already have plenty of U.S. real estate exposure and are seeking broad diversification outside domestic real estate stocks, it might be worth taking a small position in HAUZ to capitalize on its low fees and large payments.
ICF is a much more concentrated play, with only 30 REITs in its portfolio, and a focus on U.S. companies. But remember that each of those companies owns thousands of properties, and while the companies are based in the U.S., many also operate internationally. Its concentrated focus on large caps has served it well as investor interest has returned to the REIT sector amid stabilizing interest rates, attractive valuations, and a desire for income.
Investors who believe in the long-term story of industrial and commercial property will likely be well served with a position in ICF. Those looking for broader diversification outside the U.S., and who can manage the additional fluctuations related to foreign exchange, interest rates, and tariffs that come with investing internationally, may be drawn to HAUZ's higher dividend payout and lower fees.
Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends American Tower, Equinix, and Goodman Group. The Motley Fool has a disclosure policy.