Vanguard Real Estate Index is by far the largest real estate fund, with just over $70 billion in assets. It is also one of the cheapest. The fund’s broadly diversified market-cap-weighted benchmark captures the full breadth and depth of the opportunity set available to category peers and closely mimics the manner in which they build their portfolios. It features experienced management and an excellent record of tracking its index. Within our new ratings framework, which puts even greater emphasis on fees, the fund’s Institutional, Admiral, and exchange-traded fund share classes have earned an upgrade to a Morningstar Analyst Rating of Gold from Silver. Owing to its higher fee, the fund’s Investor share class retains its Silver rating.
Vanguard Real Estate ETF VNQ
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Morningstar’s Analysis
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
The Morningstar Analysis section contains a thorough evaluation of an investment’s merits and drawbacks and often discusses the most important or decisive factors leading to the fund’s overall rating.
Will VNQ outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
Process Pillar
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable VNQ’s performance objective and investment process is for both security selection and portfolio construction.
People Pillar
The People Pillar is our evaluation of the VNQ management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
Parent Pillar
The Parent Pillar is our rating of VNQ’s parent organization’s priorities and whether they’re in line with investors’ interests.
A solid option for exposure to U.S. real estate.
