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VNQ ETF — Holdings & Analysis | Stock Expert AI

The Vanguard Real Estate ETF (VNQ) is a passively managed fund with $69.60 billion in assets under management. VNQ offers investors exposure to U.S. real estate investment trusts (REITs) and companies that purchase real property. With an expense ratio of 0.13%, VNQ is designed to closely track the MSCI US Investable Market Real Estate 25/50 Index, providing a cost-effective way to diversify a portfolio with real estate holdings and generate investment income. Past performance does not guarantee future results.

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

The Vanguard Real Estate ETF (VNQ) is a passively managed fund with $69.60 billion in assets under management. VNQ offers investors exposure to U.S. real estate investment trusts (REITs) and companies that purchase real property. With an expense ratio of 0.13%, VNQ is designed to closely track the MSCI US Investable Market Real Estate 25/50 Index, providing a cost-effective way to diversify a portfolio with real estate holdings and generate investment income. Past performance does not guarantee future results.

ETF Overview

Invests in stocks issued by real estate investment trusts (REITs), companies that purchase office buildings, hotels, and other real property. Goal is to closely track the return of the MSCI US Investable Market Real Estate 25/50 Index. Offers high potential for investment income and some growth; share value rises and falls more sharply than that of funds holding bonds. Appropriate for helping diversify the risks of stocks and bonds in a portfolio.
The Vanguard Real Estate ETF (VNQ) seeks to replicate the performance of the MSCI US Investable Market Real Estate 25/50 Index by investing in stocks of REITs. This provides investors with exposure to a broad range of real estate companies, including those owning office buildings, hotels, and other real properties. VNQ's top holdings include Vanguard Real Estate II Index (VRTPX) at 14.38%, Welltower Inc (WELL) at 7.52%, and Prologis Inc (PLD) at 7.08%. The fund is heavily concentrated in real estate, with 98.1% of its assets allocated to the sector. VNQ is designed for investors seeking to diversify their portfolios with real estate, generate investment income through dividends (currently yielding 3.83%), and potentially achieve some capital appreciation. The fund's focus on U.S. real estate makes it suitable for investors with a domestic focus. Past performance does not guarantee future results.

Risk Metrics

VNQ carries several risks inherent to its investment strategy. With 98.1% of its assets invested in the real estate sector, the fund is subject to sector-specific risks, such as changes in interest rates, property values, and economic conditions affecting the real estate market. The fund's top holding, Vanguard Real Estate II Index, accounts for 14.38% of the portfolio, introducing some concentration risk. The fund's beta of 1.15 indicates that it is more volatile than the overall market. The expense ratio of 0.13% will create a slight drag on performance over time, although it is relatively low. Investors should be aware of these risks and consider their own risk tolerance before investing in VNQ. Past performance does not guarantee future results.

Expense Ratio

0.13%

Top Holdings

Sector Allocation

  • Real Estate: 98.1%
  • Communication Services: 0.6%
  • Cash & Others: 0.5%
  • Technology: 0.4%
  • Financial Services: 0.2%
  • Energy: 0.1%
  • Industrials: 0.0%
  • United States: 99.0%
  • Other: 0.9%
  • Bermuda: 0.2%

Dividend Yield

3.83%
  • <a href="/etf/reet">iShares Global REIT ETF (REET)</a> — 0.14% expense ratio
  • <a href="/etf/rem">iShares Mortgage Real Estate ETF (REM)</a> — 0.48% expense ratio
  • <a href="/etf/dfar">Dimensional - US Real Estate ETF (DFAR)</a> — 0.19% expense ratio
  • <a href="/etf/mgc">Vanguard Mega Cap ETF (MGC)</a> (Large Cap Equity) — 0.05% ER
  • <a href="/etf/vti">Vanguard Total Stock Market ETF (VTI)</a> (Large Cap Equity) — 0.03% ER
  • <a href="/etf/voo">Vanguard S&P 500 ETF (VOO)</a> (Large Cap Equity) — 0.03% ER
  • <a href="/etf/vusb">Vanguard Ultra-Short Bond ETF (VUSB)</a> (Core Investment Grade Bond) — 0.10% ER
  • <a href="/etf/bnd">Vanguard Total Bond Market ETF (BND)</a> (Core Investment Grade Bond) — 0.03% ER
  • <a href="/etf/vclt">Vanguard Long-Term Corporate Bond ETF (VCLT)</a> (Core Investment Grade Bond) — 0.03% ER

Risk Metrics

  • Beta: 1.15

Questions & Answers

What is VNQ and what does it track?

The Vanguard Real Estate ETF (VNQ) is designed to provide investors with exposure to U.S. real estate investment trusts (REITs). It aims to closely track the performance of the MSCI US Investable Market Real Estate 25/50 Index, which represents a broad range of REITs across various property types. As of 2026-03-31, VNQ has $69.60 billion in assets under management and holds 158 individual stocks. The fund's top holdings include Vanguard Real Estate II Index and individual REITs like Welltower Inc and Prologis Inc, providing diversified exposure to the real estate sector. Past performance does not guarantee future results.

What is the expense ratio for VNQ?

The expense ratio for the Vanguard Real Estate ETF (VNQ) is 0.13%. This means that for every $10,000 invested in the fund, investors will pay $13 in annual expenses. Compared to the average expense ratio for similar real estate ETFs, which is around 0.44%, VNQ offers a cost-effective way to gain exposure to the real estate sector. The low expense ratio helps to minimize the impact of fees on long-term investment returns. Past performance does not guarantee future results.

What are the top holdings in VNQ?

As of 2026-03-31, the top holdings in the Vanguard Real Estate ETF (VNQ) are: 1) Vanguard Real Estate II Index (VRTPX) at 14.38%, 2) Welltower Inc (WELL) at 7.52%, 3) Prologis Inc (PLD) at 7.08%, 4) Equinix Inc (EQIX) at 5.11%, and 5) American Tower Corp (AMT) at 4.80%. These holdings represent a significant portion of the fund's total assets and provide exposure to various segments within the real estate sector, including healthcare REITs, industrial REITs, and data center REITs. The concentration in these top holdings can impact the fund's overall performance. Past performance does not guarantee future results.

Is VNQ a good long-term investment?

Whether VNQ is a good long-term investment depends on an individual's investment goals, risk tolerance, and time horizon. VNQ offers exposure to the real estate sector, which can provide diversification benefits and potential income through dividends. The fund's dividend yield is currently 3.83%. However, real estate investments are subject to market fluctuations and interest rate sensitivity. With a beta of 1.15, VNQ is more volatile than the broader market. Investors should carefully consider these factors before making a long-term investment in VNQ. Past performance does not guarantee future results.

How does VNQ compare to similar ETFs?

VNQ competes with other real estate ETFs, such as the iShares U.S. Real Estate ETF (IYR) and the Schwab U.S. REIT ETF (SCHH). VNQ is the largest of these, with $69.60 billion in AUM, while IYR and SCHH have smaller asset bases. VNQ's expense ratio of 0.13% is competitive with SCHH's, while IYR has a higher expense ratio. All three ETFs track similar indices and provide exposure to U.S. REITs. However, differences in index construction and weighting methodologies can lead to slight variations in performance. Past performance does not guarantee future results.

Does VNQ pay dividends?

Yes, the Vanguard Real Estate ETF (VNQ) pays dividends. As of 2026-03-31, VNQ has a dividend yield of 3.83%. This means that investors can expect to receive approximately 3.83% of their investment in annual dividend payments. The dividend income is derived from the REITs held within the fund's portfolio. Dividends are typically paid quarterly, providing investors with a regular stream of income. Past performance does not guarantee future results.