ETF Evaluator:
Vanguard Real Estate ETF (VNQ)
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(as of Jul 30)
Best Performing in Real Estate Over the Last Year
| 64.8% | Global X Data Center & Dgtl Infrs ETF (DTCR) |
| 29.5% | Invesco KBW Premium Yield Eq REIT ETF (KBWY) |
| 24.0% | ALPS REIT Dividend Dogs ETF (RDOG) |
| 21.6% | Janus Henderson US Real Estate ETF (JRE) |
| 21.5% | State Street® SPDR® Dow Jones® REIT ETF (RWR) |
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ETF Details
Vanguard Real Estate ETF Overview
Vanguard Real Estate ETF (VNQ) is a passively managed Sector Equity Real Estate exchange-traded fund (ETF). Vanguard launched the ETF in 2004.
The investment seeks to provide a high level of income and moderate long-term capital appreciation by tracking the performance of the MSCI U.S. Investable Market Real Estate 25/50 Index that measures the performance of publicly traded equity REITs and other real estate-related investments.
The fund invests at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in the stocks that make up the Target Index. The advisor attempts to track the index by investing all, or substantially all, of its assets-either directly or indirectly through a wholly owned subsidiary. The fund is non-diversified.
About Vanguard Real Estate ETF (VNQ)
There are 2 members of the management team with an average tenure of 1.36 years: Chris Nieves (2025) and Jena Stenger (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: DJ US Total Stock Market TR USD index with a weighting of 100% and MSCI US IMI/Real Estate 25-50 GR USD index with a weighting of 100%. Vanguard Real Estate ETF has 159 securities in its portfolio. The top 10 holdings constitute 54.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Vanguard Real Estate ETF is part of the Equity global asset class and is within the Sector Equity ETF group. Vanguard Real Estate ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Vanguard Real Estate ETF has 0.6% of the portfolio in cash.
Assets Under Management
The fund has $38 billion in total assets, which is above the $1 billion average for the Real Estate category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
VNQ Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Vanguard Real Estate ETF expense ratio is low compared to funds in the Real Estate category. Vanguard Real Estate ETF has an expense ratio of 0.13%, which is 74% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Vanguard Real Estate ETF has a portfolio turnover rate of 7%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 69% for the Real Estate category.
Recently, in the month of June 2026, Vanguard Real Estate ETF returned 1.7%, which earned it a grade of D, as the Real Estate category had an average return of 2.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Vanguard Real Estate ETF has a trailing yield of 3.60%, which is below the 4.16% category average.
The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Vanguard Real Estate ETF Grades
Year to date, the ETF has returned 11.1%, 2.3 percentage points worse than the category, which translates into a grade of D. The fund has returned 12.5% over the past year (grade of D), 9.1% over the past three years (grade of C) and 2.8% per year over the past five years (grade of D) and 4.9% per year over the past 10 years (grade of D).
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VNQ Trailing NAV Total Returns Data as of 6/30/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| VNQ Return (NAV) | 1.7% | 9.7% | 12.5% | 9.1% | 2.8% | 4.9% |
| VNQ Return (Price) | 1.7% | 9.7% | 12.5% | 9.1% | 2.8% | 4.9% |
| NAV +/- Price Return | 0.032% | 0.014% | 0.002% | 0.005% | 0.002% | -0.003% |
| Real Estate Avg | 2.0% | 11.7% | 15.1% | 9.7% | 3.4% | 4.6% |
| VNQ Grade (NAV) | D | D | D | C | D | D |
| +/- Category (NAV) | -0.3% | -2.1% | -2.6% | -0.6% | -0.6% | 0.3% |
| VNQ Tax-Cost Ratio | na | na | 1.5% | 1.6% | 1.6% | 1.4% |
VNQ Annual NAV Total ReturnsData as of 6/30/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| VNQ Return (NAV) | 11.1% | 3.2% | 4.9% | 11.8% | -26.2% | 40.4% | -4.7% | 28.9% | -5.9% | 4.9% | 8.5% |
| VNQ Return (Price) | 11.1% | 3.3% | 4.8% | 11.8% | -26.2% | 40.5% | -4.7% | 28.9% | -6.0% | 4.9% | 8.6% |
| NAV +/- Price Ret | -0.001% | 0.025% | -0.024% | 0.003% | 0.002% | 0.003% | -0.009% | -0.1% | 1.2% | -0.8% | 0.9% |
| Real Estate Avg | 13.4% | 2.1% | 5.1% | 11.8% | -25.5% | 37.6% | -8.2% | 26.9% | -4.5% | 8.2% | 10.1% |
| VNQ Grade (NAV) | D | B | C | C | D | D | B | B | F | D | B |
| +/- Category | -2.3% | 1.1% | -0.2% | -0.1% | -0.7% | 2.8% | 3.5% | 2.0% | -1.5% | -3.2% | -1.6% |
| Risk Measures | |
| Beta: | 1.00 |
| R-Squared: | 57% |
| Standard Deviation: | 16.7% |
| Category Risk Index: | 0.98 |
| Category Risk Rating: | Above Average |
| Total Risk Index: | 1.38 |
| Total Risk Rating: | Above Average |
| Portfolio Characteristics | |
| Yield: | 3.6% |
| Total Assets: | $ 70,915 Mil |
| Share Class Assets: | $ 38,155 Mil |
| Turnover: | 7.0% |
| Expense Ratio: | 0.13% |
| Index Fund: | Yes |
| Index Tracked: | DJ US Total Stock Market TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Quarterly |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 1.4 years | |||
| Average Tenure: 1.4 years | |||
| Managers (Year): Nieves Chris (2025), Stenger Jena (2025) | |||
Portfolio Composition (as of 5/31/26)
| # of Holdings: | 159 |
| % in Top 10 Holdings: | 54.3% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 99.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.4% |
| Cash: | 0.6% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Vanguard |
| Phone Number: | 866-499-8473 |
| Website: | www.vanguard.com |
| Inception Date: | September 23, 2004 |
Expenses and Fees
| Expense Ratio (%): | 0.13% (Rating: Low) |
| Category Average Expense Ratio (%): | 0.49% |
