Vanguard Global ex-U.S. Real Estate ETF (VNQI) is a broadly diversified international real estate fund launched in 2011. It carries an expense ratio of 0.12%, making it one of the more affordable options in its category. As of January 2026, VNQI manages $3.53 billion in assets, holds 742 underlying securities and excludes all U.S. real estate companies from its portfolio. The fund’s beta over the past five years is 0.71, indicating lower volatility compared with the S&P 500.

VNQI offers a dividend yield of 4.58%, paid annually, which appeals to income-focused investors seeking larger lump-sum distributions. In 2025, the fund delivered a total return of 19.58% and over a five-year period (through January 2026) generated a price change of –12.7%. The worst drawdown over the same five-year span was –35.76%, reflecting sensitivity to global economic cycles in real estate markets.

The ETF’s 742 holdings span more than 30 developed markets, with particular concentration in Asia-Pacific and Europe. Top positions include leading real estate developers and landlords in Japan and Australia, each representing under 4% of assets, which prevents single-security concentration. Real estate investment trusts, property management companies, and listed developers collectively account for 100% of the portfolio, with no individual stock exceeding 4% weight.

VNQI’s exclusion of U.S. assets makes it well suited for investors seeking pure non-U.S. real estate exposure. Its higher yield and low expense ratio favor those targeting income and cost efficiency. However, the annual dividend schedule may not suit investors desiring quarterly cash flow. Over five years, the fund underperformed U.S.-inclusive counterparts by roughly 20 percentage points, so those prioritizing long-term capital growth or U.S. market participation might consider complementing VNQI with U.S.-focused REIT allocations.