RWR — SPDR Dow Jones REIT ETF
RWR was one of the first REIT ETFs launched and tracks the same Dow Jones US Select REIT Index as SCHH but at a much higher 0.25% expense ratio. It is one of the more expensive broad US REIT ETFs available today. While it was a pioneer in REIT ETF investing, cost-conscious investors have largely migrated to lower-cost alternatives like SCHH (0.07%) and VNQ (0.12%). RWR may still serve institutional investors with existing allocations.
Top Holdings
Strategy
- →Note: same index as SCHH at much higher cost — new investors should generally prefer SCHH
- →Use only if existing allocation and tax considerations make switching costly
- →Hold in tax-advantaged accounts given REIT dividend ordinary income treatment
- →Consider replacing with SCHH or VNQ for ongoing cost savings
Best For
- ✓Existing RWR holders for whom switching carries meaningful tax costs in taxable accounts
- ✓Institutional investors with legacy allocations in RWR
- ✓SPDR-only platform investors who cannot access SCHH or VNQ
- ✓Investors who prioritize SPDR brand for platform consistency
Key Risks
- ⚠High expense ratio (0.25%) relative to SCHH (0.07%) for identical index exposure
- ⚠Real estate sector concentration risk
- ⚠Interest rate sensitivity of equity REITs
- ⚠REIT dividend tax inefficiency in taxable accounts
Similar ETFs
Frequently Asked Questions
Why is RWR so much more expensive than SCHH if they track the same index?
RWR was launched in 2001 when the ETF industry was less competitive on fees. Over the years, new entrants like SCHH undercut legacy ETFs on price. Many investors have switched to cheaper alternatives. This is educational content, not financial advice.
Should I sell RWR and buy SCHH?
In a tax-advantaged account, switching from RWR to SCHH is straightforward and saves 0.18% annually. In a taxable account, any embedded capital gains tax from selling RWR must be weighed against the ongoing fee savings. This is educational content, not financial advice.
Does RWR pay dividends?
Yes, RWR distributes quarterly dividends from REIT income. These are mostly ordinary income for tax purposes. This is educational content, not financial advice.
What REIT sectors does RWR cover?
RWR covers all major equity REIT sectors including industrial, residential, retail, office, healthcare, and specialty (cell towers, data centers). This is educational content, not financial advice.
What is RWR's historical track record?
As one of the first REIT ETFs, RWR has a long track record spanning multiple real estate and economic cycles. Its long-term performance closely matches other Dow Jones US REIT index trackers. This is educational content, not financial advice.
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