Vanguard Real Estate ETF (NYSEMKT:VNQ) offers a concentrated portfolio of domestic REITs, while Vanguard Global ex-U.S.
Real Estate ETF (NASDAQ:VNQI) provides broader international diversification and a higher trailing yield
Real estate investment trusts (REITs) provide income and growth potential, but geographic concentration can shift a portfolio’s risk profile significantly. While both funds originate from Vanguard, they serve different strategic roles. One focuses exclusively on the domestic property market, while the other looks across more than 30 international markets to capture global real estate trends.
Snapshot (cost & size) These Vanguard offerings are both low-cost, though the international fund is slightly more affordable with an expense ratio of 0.12%. Income-focused investors may find the international option more appealing, as it provides a higher trailing dividend yield of 4.50% compared to the 3.60% offered by the domestic real estate fund. Performance & risk comparison What’s inside Vanguard Real Estate ETF (NYSEMKT:VNQ) tracks the MSCI US Investable Market Real Estate 25/50 Index and was launched in 2004.