RIET vs VNQ: Real Estate ETF Showdown
Institutional side-by-side analysis of fees, dividend cash flows, and underlying holdings overlap.
Key Fundamental Specifications
| Metric | RIET | VNQ |
|---|---|---|
| Annual Expense Ratio | 0.50% | 0.13% Lowest Fee |
| Annual Dividend Yield | 9.60% Higher Yield | 4.12% |
| Assets Under Management (AUM) | $0.1 Billion | $32.4 Billion |
| Number of Holdings | 100 Constituents | 160 Constituents |
| Fund Issuer | Hoya Capital | Vanguard |
| Benchmark Index | Hoya Capital High Dividend Yield Index | MSCI US Investable Market Real Estate 25/50 Index |
Top Holdings & Weight Overlap
Constituent weights across both funds:
| REIT Constituent | RIET Weight | VNQ Weight |
|---|---|---|
| PLD Prologis Inc. | 0.0% | 7.4% |
| AMT American Tower Corp. | 0.0% | 6.8% |
| EQIX Equinix Inc. | 0.0% | 6.2% |
| WELL Welltower Inc. | 0.0% | 5.9% |
| SPG Simon Property Group | 0.0% | 4.1% |
| PSA Public Storage | 0.0% | 3.8% |
| DLR Digital Realty Trust | 0.0% | 3.7% |
| O Realty Income Corp. | 0.0% | 3.5% |
| CCI Crown Castle Inc. | 0.0% | 2.9% |
| EXR Extra Space Storage | 0.0% | 2.6% |
Institutional Verdict: RIET or VNQ?
Fee Advantage: VNQ offers the lower expense ratio at 0.13% vs 0.50%. Over a 20-year holding period, lower expense drag preserves thousands of dollars in cumulative returns.
Yield Generation: For income-focused investors, RIET provides the higher current dividend yield at 9.60%, making it more attractive for living off dividend cash flow.
Conclusion: If your priority is low-cost passive index tracking, choose VNQ. If your mandate is maximum immediate dividend yield, choose RIET.
Frequently Asked Questions
What is the difference between RIET and VNQ?
Hoya Capital High Dividend Yield ETF (RIET) is issued by Hoya Capital with an expense ratio of 0.50% and dividend yield of 9.60%. In comparison, Vanguard Real Estate ETF (VNQ) is issued by Vanguard charging 0.13% with a yield of 4.12%.
Which REIT ETF has lower fees: RIET or VNQ?
VNQ has the lower annual expense ratio (0.13% vs 0.50%), saving long-term investors money on compounding fee drag.
Which ETF pays a higher dividend yield: RIET or VNQ?
RIET currently pays the higher annualized dividend yield (9.60% vs 4.12%).
Can I hold both RIET and VNQ in a portfolio?
While you can hold both, RIET and VNQ share significant constituent overlap in top REITs like Prologis, American Tower, and Equinix. Holding both may cause redundant portfolio exposure.