Vanguard Real Estate ETFs: VNQI Offers Higher Yield and Global Reach, While VNQ Provides U.S. Exposure

Vanguard Global ex-U.S. Real Estate ETF (NASDAQ:VNQI) and Vanguard Real Estate ETF (NYSEMKT:VNQ) stock akin costs and hazard levels, but VNQI delivers a higher output and planetary diversification, portion VNQ stands retired for its monolithic assets nether absorption and superior five-year full return.

Both Vanguard funds springiness investors entree to existent property equities, but they absorption connected antithetic geographies: VNQI provides vulnerability to non-U.S. spot markets, portion VNQ targets U.S.-listed existent property concern trusts (REITs). This examination examines cost, yield, performance, risk, assemblage makeup, and applicable differences to assistance clarify which whitethorn amended acceptable a portfolio seeking existent property diversification.

Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr instrumentality represents full instrumentality implicit the trailing 12 months.

VNQI and VNQ are astir identical connected fees, with VNQI a hairsbreadth much affordable, but VNQI besides delivers a higher dividend yield, which whitethorn entreaty to those seeking income from planetary existent estate.

VNQ invests successful 158 U.S.-listed REITs, with a portfolio heavy concentrated successful existent property (98%), and tiny allocations to connection services and technology. Top holdings see Welltower Inc(NYSE:WELL), Prologis Inc(NYSE:PLD), and Equinix Inc(NASDAQ:EQIX), and the money has a agelong way grounds astatine 21.5 years. This absorption whitethorn suit investors looking for vulnerability to the U.S. spot market, with the added reassurance of heavy liquidity and scale.

By contrast, VNQI spans much than 30 non-U.S. countries and has 682 holdings, offering a premix of existent property (80%), currency and different assets (16%), and immoderate fiscal services (2%). Leading positions are Mitsubishi Estate Co Ltd(OTC:MITEY), Goodman Group(ASX:GMG), and Mitsui Fudosan Co Ltd (OTC:MTSFY). This planetary tilt tin assistance diversify a U.S.-centric portfolio, but the money is overmuch smaller and little concentrated successful immoderate azygous market.

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For galore investors, existent property is simply a captious portion of their portfolio composition. Real property exchange-traded funds (ETFs) are often the champion mode to physique that exposure. Here’s however 2 of the astir salient existent property ETFs, Vanguard Global ex-U.S. Real Estate ETF (VNQI) and Vanguard Real Estate ETF (VNQ), some tally by Vanguard, matchup successful a head-to-head comparison.