Vanguard Global ex-US Real Estate ETF

VNQI

Market cap $3.48B

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.

VNQI offers a higher dividend yield compared to REET, but has a higher five-year risk profile as measured by maximum drawdown. REET allocates more heavily to U.S.-listed real estate names and shows higher recent volatility.

VNQI offers broader international diversification and a higher dividend yield compared to VNQ VNQ is substantially larger, more liquid, and has outperformed over the past five years Both ETFs have similar risk profiles, but their top holdings and sector concentrations differ markedly

VNQI charges a much lower expense ratio and boasts a higher dividend yield than RWX. RWX is more concentrated, with only 121 holdings, while VNQI holds more than 700 positions.

HAUZ charges a slightly lower expense ratio but manages less than one-fourth the assets under management of VNQI HAUZ delivered a stronger 1-year total return, while both funds posted similar risk profiles and top holdings Both ETFs focus heavily on real estate, but HAUZ leans even more into the sector with less cash exposure

VNQI charges a much lower expense ratio and has over 10 times the assets under management of GQRE GQRE shows slightly less severe drawdowns over the past five years Both funds tilt heavily toward real estate, but GQRE is more concentrated in U.S.-listed REITs while VNQI is broadly diversified internationally

VNQI offers broader global diversification, while ICF is concentrated solely in U.S. real estate. ICF charges a higher expense ratio and yields less income than VNQI.

The Vanguard Global ex-US Real Estate Index ETF is off to a solid start in 2026, building on strong gains achieved in 2025. This has pushed the key P/B ratio for VNQI holdings to 1x, up from 0.9x in 2025. While a valuation in line with book values only implies circa 3% dividend growth from here, it may also drive lower funding costs for VNQI holdings.