Vanguard Global ex-US Real Estate ETF

VNQI

Market cap $3.78B

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.

Prices for raw materials have rocketed higher so far this year, outperforming the rest of the major asset classes by a wide margin through Friday's close (Jan. 23), based on a set of ETFs.

VNQI and REET charge nearly identical expense ratios, but VNQI offers a higher dividend yield. REET holds more U.S. REITs, while VNQI focuses exclusively on non-U.S. real estate companies.

VNQI holds more stocks and offers a slightly higher yield, but HAUZ has delivered a better 1-year return. Both funds have less common dividend payout frequencies.

VNQI delivered a stronger one-year return and slightly higher dividend yield, but both funds saw similar five-year drawdowns. VNQI offers broader exposure to international real estate with over 700 holdings.

Cypress Point Wealth Management bought 65,258 shares in Vanguard Global ex-U.S. Real Estate ETF worth around $3.06 million. After the trade, Cypress Point holds 126,814 VNQI shares, valued at $6.05 million.

The internationally focused VNQI ETF has outperformed its U.S.-focused VNQ peer so far in 2025, benefiting from low starting valuations and a weak U.S. dollar.. Both ETFs have shown weak (or even negative) dividend growth over the past decade, impacted by elevated interest rates. Looking ahead, I estimate VNQI should outperform the VNQ by about 2% annually, buoyed by a higher current yield and a currency tailwind from a weaker U.S. dollar.

VNQI offers US investors broad, low-cost exposure to international REITs, enhancing diversification and reducing concentration risk in US real estate. The ETF is attractively valued versus US REITs, with a much lower P/E and P/B ratio, and avoids problematic countries, focusing on developed markets. VNQI's performance has been mediocre long-term but has outperformed peers recently; its low expense ratio is a key advantage over alternatives.

To say there's uncertainty in the market right now would be an understatement. The volatility stemming from President Donald Trump's tariffs is, understandably, causing many people to look for investments that are more diversified than buying individual stocks.

The Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares invests in international real estate stocks, primarily in Japan, Australia, and the United Kingdom. VNQI has outperformed the VNQ so far in 2025, helped by a weak U.S. dollar. I estimate VNQI offers a total return close to 9% before factoring in currency moves.