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

Both the Vanguard Global ex-U.S. Real Estate ETF(NASDAQ:VNQI) and iShares Global REIT ETF (NYSEMKT:REET) people planetary existent property equities, providing vulnerability to existent property concern trusts (REITs) worldwide. This examination highlights their differences successful cost, performance, risk, and portfolio composition, helping investors measure which whitethorn amended acceptable their needs.

*Beta measures terms volatility comparative to the S&P 500; beta is calculated from five-year play returns.

Both ETFs are low-cost, though VNQI is somewhat much affordable by 0.02 percent points. VNQI offers a higher dividend yield, which whitethorn entreaty to income-focused investors seeking a larger instrumentality from existent property equities.

Established successful 2014, REET is the largest planetary existent property ETF by full assets and mean volume, presently holding 377 assets worldwide (as of Jan. 8, 2026). Its largest positions are Welltower (NYSE:WELL), Prologis (NYSE:PLD), and Equinix (NASDAQ:EQIX), which unneurotic relationship for astir 20% of its full assets.

VNQI, successful contrast, does not see immoderate U.S. existent property stocks and REITS successful its holdings, and alternatively chiefly focuses connected developed planetary markets, particularly successful the Asia-Pacific and European regions. Its apical holdings see Goodman Group (ASX:GMG.AX), Mitsui Fudosan Co., Ltd. (JPX:8801.T), and Mitsubishi Estate Co., Ltd. (JPX:8802.T). The ETF has 742 full holdings, with nary azygous plus accounting for much than 4% of its weight, making its diversification much adjacent than top-heavy.

VNQI has a higher dividend yield, much full holdings, and had a precise beardown twelvemonth successful 2025. However, determination are a fewer things investors should beryllium alert of erstwhile comparing the money to REET.

Outside of nary U.S. assets successful its holdings, the ETF has had a 5-year terms alteration of -12.7%, compared to REET expanding 8.3% successful that span. In addition,  VNQI pays retired dividends annually, which is little predominant than REET's quarterly payments, and the yearly dividend is much of a lump sum payment. The payout ratio of the iShares ETF besides has a 96% dividend payout ratio, astir 25% higher than Vanguard's, which shows that the REET money is much committed to returning profits to investors.