At a glance
VNQ charges 0.13% a year, below the 0.17% average of the 8 funds most like it (the 4th cheapest of 9). It has $73.11B in assets, the largest of that group; it paid 3.63% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +9.6% with distributions reinvested (S&P 500: +11.5%), the best of those 9 funds; over three years it returned +13.8% a year. At its worst it fell 31.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 44 months after the low. Its ten largest positions make up 54.9% of the fund, out of 141 in all.
The short version
Vanguard Real Estate ETF (VNQ) tracks the MSCI US Investable Market Real Estate 25/50 Index, holding U.S. real estate investment trusts (REITs) and property firms such as Welltower, Prologis and Equinix. It aims for high income, paid quarterly; payouts over the 12 months to October 30, 2026 equaled a 3.63% yield. At 0.13% a year, it costs less than the 0.17% average of similar funds, though SCHH, USRT and FREL are cheaper.
Price history
The interactive chart needs JavaScript.
VNQ +9.6% over the year to Oct 30, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| VNQ official prospectus, to Dec 31, 2025 | — | +3.18% | — | +4.62% | +5.13% | — |
| VNQ price data to Oct 30, 2026 | +9.2% | +9.6% | +13.8% | +0.9% | — | +6.6% |
- Over the year to Oct 30, 2026, VNQ returned +9.6%, 1st of 9 among similar funds.
- Its 5-year annualized return was +0.9%.
- Its worst full calendar year was 2022 (-26.2%); its best was 2021 (+40.5%).
- The deepest fall in its price history was 34.5% (Dec 31, 2021 to Oct 25, 2023), recovered by Jun 12, 2026.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.2% | — |
| 2025 | +3.3% | +3.18% |
| 2024 | +4.8% | +4.92% |
| 2023 | +11.8% | +11.75% |
| 2022 | -26.2% | -26.20% |
| 2021 | +40.5% | +40.38% |
| 2020 | — | -4.72% |
| 2019 | — | +28.91% |
| 2018 | — | -5.95% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Not in the price data, which starts Jun 2, 2020 |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 31.8% over that stretch · deepest drop along the way 31.8%, back to its old high 44 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $2.6100 | |
| 2025 | $3.4700 | +1.2% |
| 2024 | $3.4300 | -2.0% |
| 2023 | $3.5000 | +8.4% |
| 2022 | $3.2300 | +8.8% |
| 2021 | $2.9700 |
Living on VNQ: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Jul 31, 2026, the fund held 141 securities; the ten largest made up 54.93% of assets.
| Holding | Weight | |
|---|---|---|
| VANG-RL ES2-INS+ | 14.50% | |
| Welltower Inc | 8.51% | |
| Prologis Inc | 7.01% | |
| Equinix Inc | 5.23% | |
| American Tower Corp | 4.20% | |
| Simon Property Group Inc | 3.88% | |
| Digital Realty Trust Inc | 3.37% | |
| Realty Income Corp | 3.08% | |
| Public Storage | 2.83% | |
| Ventas Inc | 2.31% | |
| CBRE Group Inc | 2.25% | |
| Iron Mountain Inc | 1.89% | |
| Crown Castle Inc | 1.73% | |
| Extra Space Storage Inc | 1.63% | |
| VICI Properties Inc | 1.37% |
By country
United States 99.69%By asset type
Stocks 99.69%By sector
Sectors of the companies held, for the 43.8% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jul 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jul 31, 2026, investors added a net $1.24B (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.64%, +1.68%, +2.54%.
How it works
VNQ does not pick stocks. It copies the MSCI US Investable Market Real Estate 25/50 Index, which covers large, mid-size and small U.S. real estate companies. These are equity REITs (real estate investment trusts: companies that own rent-paying property and pay out most of their income) plus real estate management and development firms such as CBRE Group. The fund tries to hold each stock in about the same proportion as the index.
As of July 31, 2026, part of the portfolio sat in a wholly owned Vanguard subsidiary fund that holds index stocks; it was the largest single line, at 14.5% of assets. Among directly held stocks, Welltower (8.5%), Prologis (7.0%) and Equinix (5.2%) led. The fund also held 10 small derivative positions, including total return swaps (contracts that pay a stock's return without owning it), netting to -0.01% of assets.
Trading is light: portfolio turnover was 7%, meaning only a small slice of holdings changed during the year. The fund is nondiversified, a legal label meaning it can put more money in a few companies, so a handful of large holdings can swing results. VNQ is the exchange-traded share class of Vanguard Real Estate Index Fund and trades on NYSE Arca at market prices, which can differ slightly from the value of its holdings.
What it really costs
- VNQ charges 0.13% a year, versus an average of 0.17% for the similar funds below (4th of 9, cheapest first).
- Of that, 0.11% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $13 in the first year and $166 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| VNQ | $13 | $42 | $73 | $166 |
In a retirement portfolio
The fund's stated goal is a high level of income, and it yielded 3.69% over the 12 months to October 27, 2026, though its price can swing as sharply as a stock fund's.
VNQ owns U.S. real estate stocks such as Welltower, Prologis and Equinix. It pays income quarterly. Its yield over the past 12 months was 3.69% as of October 27, 2026. The fund's 0.13% expense ratio is below the 0.17% average of similar funds. On $10,000, the SEC's standard example puts the first-year cost at $13.
That income comes with stock-like swings. Results for 2008 aren't shown here. The fund lost 24.11% in the quarter ended March 31, 2020, during the COVID crash, and 31.8% in the 2022 bear market. Its worst calendar year was 2022, when it fell 26.2%. Its deepest drop was 34.5%, from December 31, 2021 to October 25, 2023. It didn't regain its earlier peak until June 12, 2026. Anyone who sold shares for spending money in 2022 or 2023 sold at low prices. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income-focused investors who want quarterly payouts from U.S. REITs; the trailing 12-month yield was 3.63% as of October 30, 2026.
- Investors wanting real estate exposure without owning property, spread across about 140 holdings such as Welltower, Prologis, Equinix and CBRE Group.
- Long-term holders who value low costs and low trading: a 0.13% expense ratio, 7% portfolio turnover and a record dating to September 2004.
Look elsewhere if
- Cost-focused investors: SCHH (0.07%), USRT (0.08%) and FREL (0.084%) charge less than VNQ's 0.13% for overlapping real estate portfolios.
- Anyone uneasy with deep drops and slow recoveries: it fell 34.5% between December 2021 and October 2023, regaining its peak only in June 2026.
- Investors seeking global property exposure: as of July 31, 2026, 99.7% of assets were in U.S. stocks, all in real estate.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| VNQ this fund | — | 0.13% | $73.11B | +9.6% | +13.8% |
| FREL Fidelity MSCI Real Estate Index ETF | 85% | 0.084% | $1.49B | +3.2% | +13.3% |
| SCHH Schwab US REIT ETF | 77% | 0.07% | $11.20B | +7.1% | +14.1% |
| DFAR Dimensional US Real Estate ETF | 77% | 0.19% | $1.78B | +7.6% | +14.0% |
| DFGR Dimensional Global Real Estate ETF | 74% | 0.22% | $3.86B | +3.7% | +13.2% |
| IYR iShares U.S. Real Estate ETF | 74% | 0.39% | $4.67B | +1.9% | +12.7% |
| USRT iShares Core U.S. REIT ETF | 72% | 0.08% | $4.66B | +8.5% | +15.9% |
| REET iShares Global REIT ETF | 70% | 0.14% | $5.13B | +4.1% | +13.5% |
Questions investors ask
Is VNQ good for retirement income?
It may suit retirees who want income from real estate, as long as they can accept stock-like swings. VNQ aims for a high level of income and pays dividends quarterly, not monthly. Over the 12 months to October 30, 2026, it paid $3.41 per share, a trailing yield of 3.63%. The fund also lost 26.2% in 2022. REIT dividends are often taxed as ordinary income rather than at lower qualified-dividend rates, which matters in taxable accounts.
What's the difference between VNQ and FREL?
The main differences are cost and size; the portfolios are similar. Their holdings overlapped by about 85% in the latest SEC holdings reports. FREL, the Fidelity MSCI Real Estate Index ETF, charges 0.084% a year versus 0.13% for VNQ. VNQ's fund is far larger, with $73.1 billion across all share classes as of July 31, 2026, against about $1.5 billion for FREL. Three-year returns were close: 13.8% a year for VNQ through October 30, 2026, and 13.3% for FREL through October 27, 2026.
What is VNQ's expense ratio?
VNQ's expense ratio, the yearly fee taken from fund assets, is 0.13%, including a 0.11% management fee, according to the prospectus filed May 28, 2026. In the SEC's standard example ($10,000 invested, a 5% annual return, shares cashed in at the end of each period), costs would total $13 after one year, $42 after three, $73 after five and $166 after ten. That is below the 0.17% average of similar funds, though SCHH (0.07%), USRT (0.08%) and FREL (0.084%) cost less.
How risky is VNQ?
It is a stock fund concentrated in one sector, and some losses have taken years to recover. VNQ lost 26.2% in 2022, and its worst quarter was a 24.11% drop in the first quarter of 2020. From its December 31, 2021 peak to its October 25, 2023 low, it fell 34.5% and did not regain that peak until June 12, 2026. The prospectus lists changes in interest rates, property supply and demand, and local economic conditions among the sector's risks.
What are VNQ's top holdings?
Welltower, Prologis and Equinix were the largest directly held stocks as of July 31, 2026, at 8.5%, 7.0% and 5.2% of assets. Next came American Tower (4.2%), Simon Property Group (3.9%) and Digital Realty Trust (3.4%). The single largest line, at 14.5%, was a wholly owned Vanguard subsidiary fund that holds index stocks on the fund's behalf. In all, the fund reported 141 holdings, and 99.7% of assets were in U.S. stocks.