Vanguard Global ex-US Real Estate ETF

VNQI

Market cap $3.49B

Schwab U.S. REIT ETF offers a more concentrated domestic portfolio with a lower expense ratio than its international Vanguard counterpart. Vanguard Global ex-U.S. Real Estate ETF provides exposure to over 30 countries and a higher dividend yield but has lagged in total returns over the last five years.

The outlook for long-term total return for the Global Market Index (GMI) edged up again in June, touching the highest level in recent history. Despite the recent rise, the expected performance remains well below GMI's realized return over the trailing ten-year window.

The iShares Select U.S. REIT ETF offers a concentrated portfolio of 30 domestic holdings while the Vanguard Global ex-U.S. Real Estate ETF provides international diversification. The Vanguard Global ex-U.S. Real Estate ETF features a lower expense ratio and a significantly higher dividend yield compared to the iShares fund.

The iShares Global REIT ETF provides exposure to both domestic and international markets, while the Vanguard Global ex-U.S. Real Estate ETF focuses exclusively on non-U.S. assets. The Vanguard Global ex-U.S. Real Estate ETF maintains a higher trailing-12-month dividend yield but has shown lower total returns over the past year.

State Street Real Estate Select Sector SPDR ETF offers a lower expense ratio and larger assets under management than Vanguard Global ex-U.S. Real Estate ETF. Vanguard Global ex-U.S. Real Estate ETF provides a higher trailing-12-month dividend yield but has seen a lower total return over the last five years.

State Street SPDR Dow Jones REIT ETF focuses on domestic real estate investment trusts, while Vanguard Global ex-U.S. Real Estate ETF targets properties in international markets. The Vanguard fund offers a lower expense ratio of 0.12% and a higher trailing-12-month distribution yield.

iShares Select U.S. REIT ETF offers concentrated exposure to 30 U.S. holdings, while Vanguard Global ex-U.S. Real Estate ETF spans more than 700 international positions. Vanguard's fund features a lower expense ratio of 0.12% and a higher trailing-12-month dividend yield.

Vanguard Global ex-U.S. Real Estate ETF has a significantly lower expense ratio of 0.12% compared to 0.59% for State Street SPDR Dow Jones International Real Estate ETF. The Vanguard fund offers a higher trailing dividend yield and broader diversification with 682 holdings while the SPDR fund holds 121 positions.

Vanguard Global ex-U.S. Real Estate ETF offers cost-effective diversification, trading at a 0.9x P/B and 11.9x P/E, with a 4.6% yield. VNQI's recovery potential is rising as global real estate transaction volumes are expected to increase over 10% in 2026 amid stabilizing rates. VNQI provides exposure to over 700 international REITs, with Japan as the largest allocation and significant positions in logistics and emerging markets.

After 1,078 trading days, U.S. REITs (FTSE NAREIT All Equity Total Return Index) reached new all-time highs on Friday, April 17. Commercial real estate (CRE) has already undergone a significant valuation reset, while many other public and private markets have yet to experience a comparable repricing. Signals from the U.S. listed REIT market indicate that real estate is transitioning from recovery to expansion, as valuations move above prior cycle highs.