VNQ ETF — Holdings & Analysis

This exchange-traded fund primarily invests in the equity of Real Estate Investment Trusts (REITs). 0.13% expense ratio, $73.1B AUM, 158 holdings, inception 2004.

Vanguard Real Estate ETF (VNQ) ETF — Price, Holdings & Analysis

This exchange-traded fund primarily invests in the equity of Real Estate Investment Trusts (REITs). 0.13% expense ratio, $73.1B AUM, 158 holdings, inception 2004.

ETF Overview

These are entities that acquire, own, and manage a diverse portfolio of income-producing real estate, including commercial properties like office buildings and hotels. The fund's main objective is to closely replicate the investment performance of the MSCI US Investable Market Real Estate 25/50 Index. While offering substantial potential for investment income and some capital appreciation, its share price tends to exhibit greater volatility compared to funds concentrated in bonds. It serves as a valuable tool for investors seeking to broaden their portfolio's asset allocation and potentially reduce overall risk by adding exposure beyond traditional stocks and bonds.

This exchange-traded fund primarily invests in the equity of Real Estate Investment Trusts (REITs). These are entities that acquire, own, and manage a diverse portfolio of income-producing real estate, including commercial properties like office buildings and hotels. The fund's main objective is to closely replicate the investment performance of the MSCI US Investable Market Real Estate 25/50 Index. Vanguard Real Estate ETF provides exposure to the real estate (listed/reits) market. The portfolio is well-diversified with 158 holdings. It is heavily weighted toward Real Estate (98.5%), reflecting a sector-tilted strategy.

Risk Metrics

The fund holds 158 positions, providing a moderate level of diversification. Heavy allocation to Real Estate (98.5%) means sector-specific downturns could disproportionately affect performance.

Expense Ratio

0.13%

What does VNQ hold?

Holding	Weight
Welltower Inc (WELL)	9.92%
Prologis Inc (PLD)	8.17%
Equinix Inc (EQIX)	6.10%
American Tower Corp (AMT)	4.90%
Simon Property Group Inc (SPG)	4.52%
Digital Realty Trust Inc (DLR)	3.93%
Realty Income Corp (O)	3.58%
Public Storage (PSA)	3.30%
Ventas Inc (VTR)	2.70%
CBRE Group Inc (CBRE)	2.63%

How Is the Fund Allocated?

Sector	Weight
Real Estate	98.5%
Cash & Others	0.9%
Communication Services	0.4%
Energy	0.1%
Industrials	0.0%
Consumer Cyclical	0.0%

Country	Weight
United States	98.5%
Other	1.3%
Bermuda	0.2%

Dividend Yield

3.51%

Dimensional - US Real Estate ETF (DFAR) — 0.19% expense ratio
iShares Mortgage Real Estate ETF (REM) — 0.48% expense ratio
iShares Global REIT ETF (REET) — 0.14% expense ratio

Vanguard Morningstar Total Stock Market ETF (VTI) (Large Cap Equity) — 0.03% expense ratio
Vanguard S&P 500 ETF (VOO) (Large Cap Equity) — 0.03% expense ratio
Vanguard Mega Cap ETF (MGC) (Large Cap Equity) — 0.05% expense ratio
Vanguard Total Bond Market ETF (BND) (Core Investment Grade Bond) — 0.03% expense ratio
Vanguard Long-Term Corporate Bond ETF (VCLT) (Core Investment Grade Bond) — 0.03% expense ratio
Vanguard Ultra-Short Bond ETF (VUSB) (Core Investment Grade Bond) — 0.10% expense ratio

Risk Metrics

Beta: 0.99

Questions & Answers

What is Vanguard Real Estate ETF (VNQ)?

With $73.1B in assets under management, it is one of the larger funds in its category.

What is the expense ratio for VNQ?

Vanguard Real Estate ETF has an expense ratio of 0.13%, which is considered low for real estate (listed/reits) ETFs. This means for every $10,000 invested, annual fees would be approximately $13.

Lower expense ratios generally lead to better long-term returns, all else being equal.

What are the top holdings in VNQ?

The three largest positions in Vanguard Real Estate ETF are Welltower Inc (WELL, 9.9%), Prologis Inc (PLD, 8.2%), Equinix Inc (EQIX, 6.1%). Together these top three holdings represent 24.2% of the fund, out of 158 total positions.

The fund is relatively diversified across its holdings.

What sectors does VNQ invest in?

Vanguard Real Estate ETF allocates across 6 sectors. The largest sector exposures are Real Estate (98.5%), Cash & Others (0.9%), Communication Services (0.4%). The fund is heavily concentrated in Real Estate.

How long has VNQ been around?

Vanguard Real Estate ETF was launched in 2004, making it 22 years old. As one of the longer-running ETFs, it has an extensive performance track record through multiple market cycles. It is managed by Vanguard.