Vanguard Real Estate ETF

Frequently Asked Questions About VNQ

What does VNQ invest in?

This exchange-traded fund primarily invests in the equity of Real Estate Investment Trusts (REITs). These are entities that acquire, own, and manage a diverse portfolio of income-producing real estate, including commercial properties like office buildings and hotels. The fund's main objective is to closely replicate the investment performance of the MSCI US Investable Market Real Estate 25/50 Index. While offering substantial potential for investment income and some capital appreciation, its share price tends to exhibit greater volatility compared to funds concentrated in bonds. It serves as a valuable tool for investors seeking to broaden their portfolio's asset allocation and potentially reduce overall risk by adding exposure beyond traditional stocks and bonds.

What is the expense ratio of VNQ?

Vanguard Real Estate ETF (VNQ) charges an expense ratio of 0.13%. This is the annual fee deducted from fund assets to cover management and operations.

How big is VNQ?

Vanguard Real Estate ETF (VNQ) manages $71.40B in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is VNQ actively managed or an index fund?

VNQ is a passive index fund — it tracks a published benchmark by holding the constituents in their published weights. Index funds typically charge low expense ratios (VNQ's is 0.13%) because there's no security selection cost.

When was VNQ launched?

Vanguard Real Estate ETF (VNQ) launched in September 2004 and is managed by Vanguard.

How has VNQ performed?

VNQ's total return — price change plus reinvested distributions — is charted at the top of this page. Switch the price chart to Total Return and pick a 1-year, 3-year, 5-year, or 10-year window to read the compound annual growth rate (CAGR) over each horizon.