ETF Comparison: Global X Data Center REITs & Digital Infrastructure ETF (DTCR) Versus Pacer Data & Infrastructure Real Estate ETF (SRVR)

DTCR vs. SRVR: Total Cost of Ownership

Thematic ETFs tend to come with higher price tags than broad market funds. DTCR charges a 0.50% expense ratio, while SRVR comes in one basis point lower at 0.49%. On a $10,000 investment, that works out to about $50 versus $49 per year. that’s a rounding error.

Expense ratios aren’t the only cost to consider, though. If you’re trading these ETFs more actively, the bid-ask spread also matters. Here, DTCR has a slight edge, with a 30-day average spread of 0.213% compared to 0.226% for SRVR. Again, the difference is marginal.

Verdict: Once you factor in both fees and trading costs, you’re basically splitting basis points. Total cost of ownership is effectively identical, so this one is a tie.

DTCR vs. SRVR: Methodology and Holdings

Both ETFs are passive index trackers, but the benchmarks they follow take very different approaches for security selection and weighting.

DTCR tracks the Solactive Data Center REITs & Digital Infrastructure Index. It’s a relatively concentrated portfolio of just 20 holdings, with a 0.86% trailing 12-month yield. The strategy goes beyond traditional real estate by including companies tied to the broader data center ecosystem. That means you’re not just getting landlords, but also exposure to semiconductor names that support the buildout.

SRVR, on the other hand, tracks the S&P Global Data & Infrastructure Real Estate Index, with a broader basket of about 50 holdings. It also offers a higher 2.69% 30-day SEC yield. The focus here is more squarely on real assets, with greater weight in real estate and some exposure to communications.

That difference shows up clearly in the portfolios. As expected, both ETFs have a heavy real estate focus, but DTCR is more heavily tilted toward U.S. companies and includes a meaningful allocation to technology names at over a quarter of its portfolio.

Both funds are top-heavy, but DTCR is more concentrated. Its top 15 holdings account for 84.86% of the portfolio, compared to 72.68% for SRVR.

There is overlap at the top, with Equinix, Digital Realty, American Tower, and Crown Castle featuring prominently in both. But gig into DTCR’s holdings and you’ll find companies like Micron, Intel, Taiwan Semiconductor, Broadcom, AMD, and Nvidia alongside the usual REIT suspects. SRVR stays closer to its lane, with a more global footprint, including names like China Tower.

Verdict: SRVR stands out to me as the cleaner digital real estate play. You’re getting higher yield, broader diversification, and less overlap with mega-cap tech names that investors may already own elsewhere.

DTCR vs. SRVR: Risk and Return

Over the trailing five-, three-, and one-year periods, as well as year-to-date, DTCR has outperformed SRVR. By stepping outside of real estate and into technology, it has benefited from the strength in semiconductors and AI-related infrastructure, while REITs have faced pressure from higher rates.

That positioning has also made DTCR the more popular fund, with consistent net inflows over the same periods. SRVR, in contrast, has seen net outflows despite its larger and more established portfolio.

On the risk side, DTCR is more volatile across those same timeframes. That’s not surprising given its exposure to tech stocks, which tend to have sharper price swings.

However, when you look at drawdowns, SRVR has had its own issues. Peak-to-trough losses have, at times, been deeper and slower to recover, reflecting the more muted rebound profile of real estate compared to tech.

Verdict: Objectively, DTCR gets the edge here. Higher returns have come with higher volatility, but the payoff profile has been more favorable, especially in a macro environment where tech has led and real estate has lagged.

Please note that this article reflects the author’s personal views and does not represent the opinions of the publication or its affiliates. It is for informational purposes only and does not constitute investment advice. It is essential to seek guidance from a registered financial professional before making any investment decisions.