Vanguard Global ex-US Real Estate ETF
Leave it to low-cost leader Vanguard to craft one of the cheapest options for investors in the sector. The Vanguard Global ex-US Real Estate ETF (VNQI) tracks the S&P Global ex-U.S. Property Index, which provides exposure to international real estate stocks in both developed and emerging markets.
That’s nearly 425 holdings in 35 different countries.
The $1.1 billion fund is heavily weighted in the Asia-Pacific, with Japan clocking in at 24% of VNQI’s holdings. That’s understandable, as Japan was one of the first nations to adopt the REIT structure after the U.S. Hong Kong, Singapore, Australia and the U.K. round out the top five.
That focus on Asia hasn’t really hurt the fund since its inception in 2010. While VNQI is down about 3% this year, the fund has produced a 6.25% annual total return since its launch, while paying a nice 3.27% dividend. All of this for a Vanguard low price of 0.32% — or $32 per $10,000 invested — in expenses.