Vanguard Launches International Real Estate ETF

Vanguard has introduced a new international real estate ETF. The Vanguard Global ex-U.S. Real Estate ETF (VNQI) will invest in real estate investment trusts (REITs) and real estate operating companies (REOCs) in emerging markets and developed markets outside the United States.

The new exchange traded fund will track the S&P Global ex-U.S. Property Index, a free-float-adjusted, market-capitalization-weighted index that measures the equity market performance of 425 international real estate securities from 35 developed and emerging markets. VNQI will carry an expense ratio of 0.35%.

REITs and REOCs are companies that purchase office buildings, hotels, and other real estate property which we buy houses Seattle. According to Vanguard, these securities offer investors an alternative to direct ownership of real estate properties. Since REITs and REOCs often perform differently than the overall equity and fixed income markets, they may offer some diversification to a portfolio already made up of stock and bond funds.