FlexShares Global Quality Real Estate Index Fund offers higher income than Vanguard Real Estate ETF amid differing expense ratios and strategies.
The FlexShares Global Quality Real Estate Index Fund (GQRE) leads the Vanguard Real Estate ETF (VNQ) by 0.69 percentage points in dividend yield, targeting income-focused investors. GQRE’s global diversification and quality-score methodology contrast with VNQ’s U.S.-centric approach, which holds 145 equity REITs.
VNQ maintains a lower expense ratio of 0.13%, compared to GQRE’s 0.46%, appealing to cost-conscious long-term holders. Both funds track distinct benchmarks, with GQRE aligning to the Northern Trust Global Quality Real Estate Index and VNQ replicating domestic real estate performance.
Investors weighing volatility may note beta differences, though neither fund’s risk profile deviates sharply from the S&P 500 over five-year monthly returns.