VNQI vs. REET: How Does Vanguard's Fund Compare Against the Largest Global Real Estate ETF?

Cost & Size Comparison - Both Vanguard Global ex-U.S. Real Estate ETF (VNQI) and iShares Global REIT ETF (REET) are low-cost options, with VNQI having a slightly lower expense ratio of 0.12% compared to REET's 0.14% [3][4] - VNQI has a total assets under management (AUM) of $3.53 billion, while REET has $4.33 billion [3] Performance & Risk Analysis - Over the past year, VNQI has outperformed REET with a return of 19.58% compared to REET's 6.65% [3][9] - In terms of risk, VNQI has a maximum drawdown of -35.76% over five years, while REET's maximum drawdown is -32.09% [5] - The growth of $1,000 invested over five years shows VNQI decreasing to $857, while REET increased to $1,053 [5][11] Portfolio Composition - REET, established in 2014, is the largest global real estate ETF by total assets, holding 377 assets with major positions in Welltower, Prologis, and Equinix, which together account for nearly 20% of its total assets [6] - VNQI focuses exclusively on non-U.S. real estate, primarily in developed international markets, with top holdings including Goodman Group, Mitsui Fudosan, and Mitsubishi Estate [7] - VNQI has a total of 742 holdings, with no single asset exceeding 4% of its weight, indicating a more diversified portfolio compared to REET [7] Dividend Yield & Payout - VNQI offers a higher dividend yield of 4.58% compared to REET's 3.62%, appealing to income-focused investors [3][4] - VNQI pays dividends annually, while REET pays quarterly, with REET having a higher payout ratio of 96% compared to VNQI's lower ratio, indicating a stronger commitment to returning profits to investors [11]