Vanguard Real Estate ETFs: VNQI Offers Higher Yield and Global Reach, While VNQ Provides U.S. Exposure

Core Insights - Vanguard Global ex-U.S. Real Estate ETF (VNQI) offers higher yield and global diversification compared to Vanguard Real Estate ETF (VNQ), which has a larger asset base and better five-year total return [1][2]. Cost and Size Comparison - Both VNQI and VNQ have similar expense ratios, with VNQI at 0.12% and VNQ at 0.13% - VNQI has a one-year return of 11.7% and a dividend yield of 4.6%, while VNQ has a one-year return of 1.3% and a dividend yield of 3.7% - VNQI has assets under management (AUM) of $4.2 billion, while VNQ has AUM of $69.6 billion [3][4]. Performance and Risk Comparison - Over five years, VNQI experienced a maximum drawdown of -35.76%, while VNQ had a maximum drawdown of -34.48% - The growth of $1,000 over five years would result in $817 for VNQI and $1,003 for VNQ [5]. Portfolio Composition - VNQ invests in 158 U.S.-listed REITs, with 98% of its portfolio in real estate and small allocations to communication services and technology; top holdings include Welltower Inc, Prologis Inc, and Equinix Inc [6]. - VNQI spans over 30 non-U.S. countries with 682 holdings, comprising 80% real estate, 16% cash and other assets, and 2% financial services; leading positions include Mitsubishi Estate Co Ltd, Goodman Group, and Mitsui Fudosan Co Ltd [7].