VNQ Fund Description

The Vanguard U.S. REIT fund tracks a market-cap-weighted index of companies involved in the ownership and operation of real estate in the United States.

VNQ ETF.com Insight

VNQ is at the top of the charts for US real estate ETFs. It's extremely cheap to own, trades huge volumes every day and tracks a broad index that captures much of the US real estate market.extremely cheap to own Excellent management has, at times, brought the cost of owning VNQ even lower than its stingy stated expense ratio. A few quibbles: Vanguard discloses holdings monthly rather than daily, which is mostly a nuisance in a low-turnover fund, and immaterial to many investors. VNQ misses some points on Fit as the fund diversifies into more real estate sub-sectors. In all, VNQ earns analyst pick in a crowded field for solid coverage at extremely low all-in costs. (Insight updated 09/26/2014)

  • 1 Month

  • 3 Months

  • YTD

  • 1 Year

  • 3 Years

  • 5 Years

  • Max

Performance [as of 12/18/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

VNQ
3.70% 12.62% 30.34% 29.42% 15.79% 14.70% 4.38%

VNQ (NAV)
3.78% 12.64% 30.23% 29.42% 17.64% 17.50% 7.95%

MSCI US REIT Index
3.80% 12.66% 30.29% 29.49% 17.71% 17.56% 8.46%
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

VNQ Top 10 Countries

VNQ Top 10 Sectors

VNQ Top 10 Holdings View All

VNQ Summary Data

Issuer Vanguard

A company that produces and manages ETFs.

Inception Date 09/23/04

The first date of a fund's operations, as documented by the issuer.

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

Expense Ratio 0.10%

The net total annual fee a fund holder pays to the issuer.

Assets Under Management $27.19 B

The market value of total assets that a fund has accumulated and now manages on behalf of investors.

Average Daily $ Volume $294.38 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

(%) | The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent." href="javascript:void(0)" class="term">Average Spread (%) 0.01%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

VNQ Portfolio Data

Weighted Average Market Cap $15.99 B

Describes the average of each stock's market cap (share price x shares outstanding) scaled by its weight in the portfolio.

Price / Earnings Ratio 64.04

Weighted average ratio of prices of a fund’s stocks to trailing earnings of underlying stocks.

Price / Book Ratio 2.42

Weighted average ratio of prices of a fund’s stocks to the book value of underlying equity.

Distribution Yield 3.44%

The ratio of distributions paid by the fund over the past 12 months, divided by the fund’s NAV.

Next Ex-Dividend Date --

The date on which a security's price excludes an upcoming dividend.

Number of Holdings 136

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

VNQ Index Data

Index Tracked MSCI US REIT Index

This is the benchmark an ETF is desigend to track or replicate.

Index Weighting Methodology Market Cap

A set of rules that the underlying index provider follows to weight its constituent securities.

Index Selection Methodology Market Cap

A set of rules that the underlying index provider follows to select its constituent securities.

Segment Benchmark Thomson Reuters US
Residential & Commercial REITs

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

Related ETFs to VNQ

Top Competing ETFs ICF, RWR, SCHH, IYR, FRI

ETFs from within the same segment or closely related segments with similar investment objectives or market exposures.

VNQ ETF.com Efficiency Insight

VNQ has massive assets and is extremely cheap to hold. Vanguard charges 0.10% annually, but most of the time VNQ has tracked its index even better than its expense ratio suggests. Tracking error can be less than the fund's expense ratio because of skillful management and because VNQ returns all net securities lending revenue to the fund. It does lose points for disclosing holdings monthly, rather than daily, though. (Insight updated 09/26/2014)


Total Return - 12/18/2014

  • 1 Month

  • 3 Months

  • YTD

  • 1 Year

  • 3 Years

  • 5 Years

  • Max

Performance [as of 12/18/14]
1 Month
3 Month
YTD
1 Year
3 Years
5 Years
10 Years

VNQ
3.70% 12.62% 30.34% 29.42% 15.79% 14.70% 4.38%

VNQ (NAV)
3.78% 12.64% 30.23% 29.42% 17.64% 17.50% 7.95%

MSCI US REIT Index
3.80% 12.66% 30.29% 29.49% 17.71% 17.56% 8.46%

Thomson Reuters US Residential & Commercial REITs
2.78% 10.34% 27.61% 27.30% 16.00% 17.57% --
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

VNQ Portfolio Management

Expense Ratio 0.10%

The net annual fee a fund holder pays to the issuer.

(12 Mo) | Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results." href="javascript:void(0)" class="term">Median Tracking Difference (12 Mo) -0.05%

Compares returns of the fund's NAV to its underlying index for a daily series of overlapping 12 month periods. The median is the middle value of the results.

VNQ Tax Exposures

Max LT/ST Capital Gains Rate 20.00% / 39.60%

The maximum long-term and short-term U.S. tax rates applicable to a realized capital gain.

Tax on Distributions Ordinary income

IRS treatment of the majority of the fund's distributions.

Distributes K1 No

ETFs that are structured as commodities pools and classified as limited partnerships by the IRS will issue K-1 forms to holders.

VNQ Fund Structure

Legal Structure Open-Ended Fund

The organizational structure of the fund or ETN.

OTC Derivative Use No

An indicator of whether a fund uses over-the-counter derivatives such as swaps or forwards to achieve its objectives.

Securities Lending Active Yes

An indicator of whether or not a fund actively lends its portfolio holdings.

ETN Counterparty N/A

The institution responsible for providing the return of the stated index and whose credit is the sole backing of the ETN.

ETN Counterparty Risk N/A

The risk of default by the ETN counterparty.

Fund Closure Risk Low

The likelihood that an issuer will shut down a fund for business or regulatory reasons.

Portfolio Disclosure Monthly

The frequency of an issuer's disclosure of all fund holdings.

VNQ ETF.com Tradability Insight

VNQ trades extremely well. The fund typically trades millions of shares a day. Spreads are generally just a penny wide and the fund’s excellent secondary market liquidity in turn keeps block trading costs down and premiums/discount to a minimum. Essentially, there's little to worry about when trading VNQ using normal trading practices: It has the depth and liquidity to handle most anything. (Insight updated 09/26/2014)

Average Spread

Premium/Discount

Volume

VNQ ETF.com/ Block LiquidityAs of 12/19/2014

5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of VNQ. VNQ is rated a 5 out of 5.

VNQ Tradability

Avg. Daily Share Volume 3,719,392

It is the daily number of shares traded, averaged over the past 45 trading days.

Average Daily $ Volume $294.38 M

It is the daily dollar value of shares traded, averaged over the past 45 trading days.

Median Daily Share Volume 3,590,571

Median number of shares traded over the past 45 trading days.

(%) | The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent." href="javascript:void(0)" class="term">Average Spread (%) 0.01%

The difference between the highest price a market participant is willing to pay to buy an ETF and the lowest price at which a market participant is willing to sell an ETF, averaged over the past 45 days, as a percent.

($) | The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars." href="javascript:void(0)" class="term">Average Spread ($) $0.01

The difference between the highest and lowest posted prices for an ETF, averaged over the past 45 days, in dollars.

(12 Mo) | The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period." href="javascript:void(0)" class="term">Max. Premium / Discount (12 Mo) 0.14% / -0.21%

The greatest amount that the market price exceeded (premium) and fell below (discount) its fair value/net asset value (NAV) over a maximum 12-month period.

Impediment to Creations None

This flags whether there is currently a systemic issue that has restricted the ability to create or redeem shares of the fund. This may be imposed by the fund's issuer, or by external circumstances.

Market Hours Overlap 100.00%

The percent of time that the underlying securities of an ETF are open to trading while US exchanges are open.

(Shares) | The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund." href="javascript:void(0)" class="term">Creation Unit Size (Shares) 100,000

The smallest block of ETF shares that an Authorized Participant can either create or redeem at net asset value (NAV) with the issuer in exchange for the underlying shares of the fund.

(45 Day Average) | The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots." href="javascript:void(0)" class="term">Creation Unit/Day (45 Day Average) 35.91

The median 45 day share volume divided by the creation unit size of the fund. The higher the number, the more likely that liquidity providers will trade the fund in size, or in odd lots.

(%) | The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit." href="javascript:void(0)" class="term">Creation Unit Cost (%) 0.00%

The standard fee to create or redeem 1 creation unit of an ETF as a percentage of the dollar value of 1 creation unit.

Underlying Volume / Unit 0.21%

This metric serves as a way of understanding the impact of executing 1 creation unit worth of an ETF in terms of the volume of its underlying components.

Open Interest on ETF Options 51,621

The total number of net outstanding options contracts for an ETF.

ETF.com Implied Liquidity 5

An estimate of liquidity for the underlying baskets of securities, scaled 1 to 5.

VNQ ETF.com Fit Insight

VNQ's earns one of the segment's top Fit scores—and rightfully so: it matches the market in most aspects. Still, we see sector biases away from specialized REITs in favor of commercial REITs. The fund holds a deep basket and its market cap allocations mirror those of the market. If you’re here for yield, be sure to also check the distribution yield on the overview tab as well as the total return—2 areas where VNQ has done well over the past 12 months. (Insight updated 09/26/2014)

VNQ Sector/Industry Breakdown

Sector VNQ Segment Benchmark
Commercial REITs 43.39% 53.22%

Specialized REITs 42.54% 29.09%

Residential REITs 13.40% 16.39%

Diversified REITs 0.67% 0.83%

VNQ Geographic Exposure

Countries VNQ Segment Benchmark
United States 100.00% 100.00%

Regions VNQ Segment Benchmark
North America 100.00% 100.00%

Developed /
Emerging Split
100.00% / 0% 100.00% / 0%

VNQ Performance Statistics

Beta 1.08

The sensitivity of the returns of the fund to the movement of the ETF.com segment benchmark. Beta of 1.0 means magnitude of fund returns equals that of IU benchmark returns.

Up Beta 1.08

The comparison of a fund's return to our benchmark's for days when the benchmark is up. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

Down Beta 1.03

The comparison of a fund's return to our benchmark's for days when the benchmark is down. Ideally down beta is less than up beta while beta of 1.0 means they're equal.

Downside Standard Deviation 0.11%

A measure of the variability between the fund's returns and the ETF.com segment benchmark returns on days when the fund underperforms the benchmark.

Segment Benchmark Thomson Reuters US
Residential & Commercial REITs

This is the index that we have chosen as the best-in-class gauge for each segment's broad market.

VNQ Benchmark Comparison

VNQ
136 Holdings
Segment Benchmark
138 Constituents
Shared Holdings
108 (Count)
 
76.61% (Weight)
VNQSegment Benchmark
Market Cap | The average market capitalization of the firms in the portfolio based on each firm’s weighting in the portfolio." href="javascript:void(0)" class="term">Weighted Average
Market Cap
$17.4 B$15.99 B

The average market capitalization of the firms in the portfolio based on each firm’s weighting in the portfolio.

Size Split

The breakdown of the portfolio’s holdings into each market capitalization bucket based on each firm’s weighting in the portfolio.

Large (>12.9B)48%44%
Mid (>2.7B)41%44%
Small (>600M)11%12%
Micro (<600M)0%1%
Price / Book Ratio2.332.42

Weighted average ratio of prices of a fund’s stocks to the book value of underlying equity.

Dividend Yield3.83%3.51%

The weighted average of the current yield on the portfolio’s holdings.

Holdings | The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper." href="javascript:void(0)" class="term">Number Of
Holdings
138136

The number of securities held in the fund as of ETF.com’s analysis date, based on issuer portfolios or the creation basket. If an ETF holds other ETFs, we count every constituent, looking through the ETF wrapper.

ConcentrationMediumMedium

The level of return contribution attributable to the average portfolio constituent.