Vanguard Real Estate ETF | VNQ

Medium RiskReal Estate
Vanguard Real Estate ETF
Issued by:Vanguard
Index : AMEX
Unit Price (NAV) :
$
Minimum investment: 2 units
Share
Compare
Share
Compare
Vanguard Real Estate ETF | VNQ

Vanguard Real Estate ETF | VNQ

About VNQ ETF

Overview:
Vanguard Real Estate ETF (VNQ) invests in real estate investment trusts - companies that purchase office buildings, hotels, and other real estate property and is managed by Vanguard that has a total AUM of $5.1T.

VNQ is an exchange-traded fund incorporated in the USA in Sept 2004. VNQ???s portfolio consists of over 100 U.S. REITs, with its top ten holdings accounting for more than 50% of $14B AUM.

About the Fund Manager:
Founded in 1975, Vanguard is the second largest asset manager in the world managing $5.1T. It is the largest provider of mutual funds and the second-largest provider of exchange-traded funds (ETFs) in the world after BlackRock's iShares.

Investment Strategy:
It tracks the performance of MSCI US Real Estate Index.

Sector:
VNQ has invested 95% of its assets in Real Estate, 3% in Technology, and 2% in other sectors. It invests in real estate investment trusts???companies that purchase office buildings, hotels, and other real estate property.

Geography:
VNQ has invested 100% of its assets in the U.S.

Recommended for:
Growth

VNQ dominates the US real estate ETF segment. The fund holds a deep basket and its market-cap allocations replicate the benchmark with the exception of sector bias away from specialized REITs towards commercial REITs. Moreover, VNQ is more than three times larger than the next-largest real estate ETF.

According to ETFdb.com, "Real estate has historically been embraced because of its ability to deliver excess returns during bull markets and low correlation with traditional stock and bond investments."

Additional Information:
1. Fund Factsheet
2. REITs vs. REIT ETFs: How They Compare (VNQ, IYR)
3. REITs Present A Great Opportunity For Investors Now (VNQ)
4. The 3 Best REIT ETFs

How did we identify this ETF:
A complete pool of 2100+ ETFs is screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R - squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the research/quant analysts team. VNQ has massive assets and is extremely cheap to hold. In fact, excellent portfolio management has brought the cost of owning VNQ even lower than its paltry stated expense ratio. VNQ trades huge volumes every day with penny-wide spreads and hence has the depth and liquidity to handle almost anything. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.

Returns

PerformanceYTD1Y3Y5Y10Y
Vanguard Real Estate ETF11.14%30.58%11.90%6.75%9.32%

Asset Class

Asset type breakdown
Stock US99.95%
Stock non-US0.04%
Cash0.02%

VNQ Holdings - Top 10

NameiWeightage (%)
American Tower Corporation (REIT)6.73%
Prologis, Inc5.13%
Crown Castle International Corp. (REIT)4.71%
Equinix, Inc. (REIT)4.05%
Digital Realty Trust, Inc2.64%
Simon Property Group, Inc2.60%
Public Storage2.58%
SBA Communications Corporation1.99%
Welltower Inc1.99%
CBRE Group, Inc1.78%

VNQ Sectors/Industry Breakdown

Sectori% of market value
Real Estate99.97%
Industrials0.03%
Financial Services0%

VNQ Countries

Countryi% of market value
North America100%

Projected Returns

Investment ofper month
gives returns of :
at 6.20% / annum
$in 10 years
amount
for a time period of
time1Y3Y5Y10Y
Returnsbased on historic SIP returns of 6.20% per annum
$
$
$+ 6.20

VNQ Summary Data

Total Net Assets $i
Average Mkt Cap Mil $i
Symbol VNQ
Exchange ARCX
ISIN US9229085538
Cat. Benchmark MSCI ACWI NR USD
Asset class Real Estate
Category Real Estate
Country US

VNQ Portfolio Data & Volatility Analysis

Net Expense Ratio 0.12i
Beta 0.8i
Valuations Rates Portfolio PE 37.33696i
3 Year Standard Deviation 18.18i

Fund Strategy

Vanguard Real Estate Index seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of the MSCI US Investable Market Real Estate 25/50 Index that measures the performance of publicly traded equity REITs and other real estate-related investments.

VNQ Fact Sheets & Reports

Vanguard Real Estate ETF | VNQ