What is the primary difference between VNQ and VNQI regarding their geographic focus?

VNQ focuses on real estate investment trusts within the United States, providing exposure to the domestic property market. In contrast, VNQI targets global real estate markets excluding the US, offering investors access to international property opportunities. This geographic distinction means their performance metrics, risk profiles, and sector compositions differ significantly based on regional economic conditions and currency fluctuations. Understanding this fundamental difference is crucial for investors seeking to allocate assets based on specific regional exposures or diversification strategies involving both domestic and international real estate markets.

How do expense ratios impact long-term investment returns for ETFs?

The expense ratio is the annual fee expressed as a percentage of assets. For VNQ, it is 0.13%, while VNQI's is 0.12%. Although the difference of 0.01 percentage points seems small, over many years, it reduces the compounded growth of an investment. Lower fees mean more of the fund's gross return stays with the investor. When comparing funds with similar performance profiles, a lower expense ratio is often preferable. However, fees should not be the sole deciding factor; the fund's strategy, holdings, and alignment with investment goals are equally important considerations for long-term outcomes.

What does net asset size indicate about an ETF like VNQ or VNQI?

Net assets, or assets under management, indicate the total market value of the assets the fund holds. VNQ has net assets of $36.9 billion, reflecting substantial size and liquidity. VNQI has $3.4 billion, indicating lower scale. Larger funds often benefit from economies of scale, potentially leading to tighter bid-ask spreads and more efficient trading. However, fund size alone does not guarantee performance. Investors should consider size alongside liquidity needs, expense ratios, and the fund's specific investment strategy to determine if the level of scale suits their trading habits and investment objectives effectively.

Which investment goal is VNQ typically associated with?

VNQ is typically associated with goals focused on domestic income generation and diversification within the US commercial real estate sector. Investors might use VNQ to gain exposure to US property markets without buying individual REITs. Its dividend yield of 3.71% supports income-oriented strategies. The fund's inception date of September 23, 2004, provides a long history of tracking the US real estate market. This makes it suitable for those seeking stable, long-term exposure to a specific geographic region with established economic fundamentals and a mature property investment environment.

What type of investor might consider VNQI for their portfolio?

VNQI might appeal to investors seeking geographic diversification in their real estate holdings, specifically targeting markets outside the United States. With a dividend yield of 4.94%, it offers higher potential income compared to some US-focused funds, though this varies with market conditions. The expense ratio of 0.12% keeps costs low. Inception was November 1, 2010. Investors considering VNQI should understand that international exposure introduces currency risk and differing regulatory environments. It suits those looking to reduce domestic bias and gain broader global property market participation.

How do the top holdings of VNQ differ from those typically found in VNQI?

The provided data lists specific top holdings for VNQ, such as Welltower (WELL) at 8.72%, Prologis (PLD) at 6.89%, and Equinix (EQIX) at 5.45%. These are US-based REITs. Top holdings for VNQI are not available in the provided context. Generally, VNQ holds only US companies, while VNQI holds international real estate equities. The absence of shared top-10 holdings between the listed data points to minimal direct overlap. This structural difference ensures that holding both funds provides distinct exposures to US and non-US property markets, supporting a diversified international real estate allocation strategy without significant duplication.

Is there significant holdings overlap between VNQ and VNQI?

Based on the available top holdings data, there are none shared among the listed top holdings for VNQ and VNQI. VNQ's top holdings include US-specific entities like WELL, PLD, and EQIX. Since VNQI focuses on global ex-US real estate, its holdings are expected to be international companies, distinct from the domestic list provided for VNQ. The lack of overlap in the top holdings suggests that the funds offer complementary exposures rather than redundant ones. This allows investors to combine them to create a comprehensive global real estate portfolio without duplicating the same specific companies heavily.

How does the dividend yield differ between VNQ and VNQI?

VNQ offers a dividend yield of 3.71%, while VNQI provides a higher yield of 4.94%. This difference reflects the varying characteristics of the underlying markets. Higher yields in international funds may sometimes indicate different economic conditions, currency impacts, or sector compositions compared to the US market. Yield is not the only metric; sustainability and growth potential of dividends matter. Investors should analyse the reasons for the yield difference and consider how each fund's income generation aligns with their overall income strategy and risk tolerance regarding international vs domestic real estate markets.

What does the inception date tell us about the history of these funds?

VNQ was launched on September 23, 2004, giving it a longer track record of over a decade and a half in various market cycles. VNQI was launched later, on November 1, 2010, reflecting the growth in accessible international real estate ETFs. A longer history can provide more data points for analysing performance across different economic environments. However, past performance is not indicative of future results. The inception dates simply mark when these funds began offering these specific exposures to investors, with VNQ having a more established operational history in the US market.

How should investors compare the costs of VNQ and VNQI?

When comparing costs, focus on the expense ratios. VNQ charges 0.13% annually, and VNQI charges 0.12%. The difference is 0.01%. While VNQI is marginally cheaper, the absolute cost difference is small for most retail investors. It is essential to read the fund prospectuses for details on other potential fees. The primary cost consideration should be the expense ratio's impact on compounding. Both fees are relatively low for real estate sector ETFs. Investors should weigh this minor fee difference against the strategic benefits of US versus international real estate exposure in their portfolios.

What data is missing for VNQI that might be important for analysis?

For VNQI, the specific top holdings and sector weights are not available in the provided data, unlike VNQ where the top holdings like WELL and PLD are listed. Knowing the exact holdings and sector weights is crucial for understanding concentration risk and specific industry exposure within the real estate category. Without this data for VNQI, investors cannot fully assess its portfolio composition or how it might correlate with other holdings in their portfolio. Obtaining this information from Vanguard's official website is recommended before making investment decisions based on detailed portfolio analysis.

Can I rely solely on the index tracked data for these funds?

The data provided states that the specific index tracked by both VNQ and VNQI is not available in this context. Typically, VNQ tracks a US real estate index, and VNQI tracks a global ex-US real estate index. Relying solely on available data without knowing the specific index composition or methodology can lead to incomplete understanding. Investors should consult the fund documentation to confirm which indices are followed. This ensures the fund's strategy aligns with expectations regarding market capitalisation coverage and sector representation within the real estate investment trusts market.

VNQ vs VNQI

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare VNQ and VNQI side by side. This page reviews fees, holdings, dividends, and how each fund tracks its market. Learn how Vanguard Real Estate ETF and Vanguard Global Ex-US Real Estate ETF differ in expense ratios and yield. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

VNQ

Metric

VNQI

0.13%

Expense Ratio

0.12%

3.71%

Dividend Yield

4.94%

$36.87B

Net Assets

$3.35B

151

Holdings

749

Sep 23, 2004

Inception Date

Nov 1, 2010

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Index Tracked

–

Real Estate

Fund Category

Global Real Estate

VNQI costs about $1.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

VNQ

Pros

:
Vanguard Real Estate ETF offers a low 0.13% expense ratio for US property exposure.
:

Considerations

:
Net assets stand at $36.9 billion, reflecting substantial market size for US real estate.
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VNQI

Pros

:
Vanguard Global Ex-US Real Estate ETF has a modest 0.12% expense ratio.
:

Considerations

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Net assets are $3.4 billion, indicating lower scale compared to some alternatives.
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About VNQ and VNQI

VNQ (VNQ)

The Vanguard Real Estate ETF (VNQ) offers investors a convenient way to gain exposure to the US real estate market through Real Estate Investment Trusts (REITs). Launched in 2004, this fund tracks a broad index of publicly traded REITs, providing access to various property types, including residential, commercial, industrial, and healthcare sectors. With an expense ratio of 0.13%, it stands as a low-cost option for those looking to diversify their portfolios into real estate without directly purchasing physical properties. Holding 151 securities, VNQ delivers a dividend yield of approximately 3.71%, appealing to income-focused investors. As with any investment, values can rise and fall, and past performance does not guarantee future results. Investors should consider their individual financial circumstances before adding sector-specific ETFs to their portfolios.

VNQI (VNQI)

The Vanguard Global Ex-US Real Estate ETF (VNQI) is designed to offer investors broad access to the international property market, specifically excluding the United States. By tracking a diverse range of listed property companies and real estate investment trusts (REITs) across developed and emerging markets, it provides a comprehensive snapshot of the global non-US real estate sector. This fund typically distributes dividends, with a current yield around 4.94%, appealing to income-focused portfolios. However, investors should note that real estate investments are sensitive to interest rate changes and economic cycles. With a low expense ratio of 0.12%, it remains a cost-effective vehicle for diversifying geographic exposure. It is crucial to remember that the value of this fund can fall as well as rise, and returns are not guaranteed. Suitable for those seeking long-term growth and income through international property assets, it represents a specialised component of a diversified portfolio.

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VNQ vs VNQI

Fund Snapshot

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Investment Analysis

VNQ

Pros

Considerations

VNQI

Pros

Considerations

About VNQ and VNQI

Buy VNQ or VNQI in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What is the primary difference between VNQ and VNQI regarding their geographic focus?

How do expense ratios impact long-term investment returns for ETFs?

What does net asset size indicate about an ETF like VNQ or VNQI?

Which investment goal is VNQ typically associated with?

What type of investor might consider VNQI for their portfolio?

How do the top holdings of VNQ differ from those typically found in VNQI?

Is there significant holdings overlap between VNQ and VNQI?

How does the dividend yield differ between VNQ and VNQI?

What does the inception date tell us about the history of these funds?

How should investors compare the costs of VNQ and VNQI?

What data is missing for VNQI that might be important for analysis?

Can I rely solely on the index tracked data for these funds?

Fund Snapshot

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About VNQ and VNQI