VNQI vs. U.S. REIT ETFs: Lower Cost, Higher Yield, Wider Diversification

Overview

• Vanguard Global ex‑U.S. Real Estate ETF (VNQI) tracks the S&P Global ex‑U.S. Property Index and holds about 682 stocks across more than 30 countries, offering broad international real estate exposure.
• VNQI lists a 0.12% expense ratio and a 4.50% trailing 12‑month yield, compared with 0.13% and 3.60% for Vanguard Real Estate ETF (VNQ) and 0.25% and 3.40% for SPDR Dow Jones REIT ETF (RWR).
• Recent performance snapshots show a 1‑year total return of 14.10% for VNQI versus 12.70% for VNQ, with RWR at 18.89% in a separate domestic comparison.
• Risk metrics diverge, with five‑year max drawdowns of 35.80% for VNQI, 34.50% for VNQ, and 32.60% for RWR, and five‑year growth of $1,000 at $999 for VNQI, $1,185 for VNQ, and $1,291 for RWR.
• Scale and portfolio focus differ, with VNQ at about $64.6 billion in assets, VNQI at $3.7 billion, and RWR at $1.8 billion, reflecting concentrated U.S. heavyweights like Welltower, Prologis, Equinix versus VNQI’s top holdings Goodman Group, Mitsubishi Estate, and Mitsui Fudosan.