Vanguard Global ex-U.S. Real Estate ETF

Vanguard Global ex-U.S. Real Estate ETF (VNQI) tracks the S&P Global ex-U.S. Property Index. The index holds real estate investment trusts (REITs) and property developers outside the U.S., in both developed and emerging markets. VNQI's annual fee of 0.12% is well below the 0.34% average for similar funds. Its returns have been uneven, though: 3.15% a year over the 10 years to Dec. 31, 2025.

• Over the year to Oct 27, 2026, VNQI returned -7.3%, 9th of 9 among similar funds.
• Its 5-year annualized return was -2.1% and its 10-year +1.9%.
• In the 2020 COVID crash it fell 37.6% and regained its old high 13.5 months after the low.
• Its worst full calendar year was 2022 (-22.9%); its best was 2012 (+43.0%).
• The deepest fall in its price history was 38.3% (Jan 17, 2020 to Mar 23, 2020), recovered by Jun 1, 2021.

As of Jul 31, 2026, the fund held 706 securities; the ten largest made up 22.04% of assets.

• Over the three months to Jul 31, 2026, investors added a net $64.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -2.43%, -2.90%, +2.75%.

VNQI is the exchange-traded share class of Vanguard Global ex-U.S. Real Estate Index Fund. Nobody picks the stocks. The fund aims to track the S&P Global ex-U.S. Property Index. That index covers publicly traded equity REITs, which are companies that own and rent out property. It also includes certain real estate management and development companies. All of them are in developed and emerging markets outside the U.S.

The index weights companies by float-adjusted market value. That means bigger companies count for more, based only on the shares the public can buy. As of July 31, 2026, Australia's Goodman Group was the largest holding at 4.0%. Next came two Japanese companies, Mitsubishi Estate (2.8%) and Mitsui Fudosan (2.5%). The top 10 holdings made up 22% of assets, and Japan alone made up 21.6%.

The fund uses replication. It generally holds the same stocks as the index in about the same proportions, and it must keep at least 80% of net assets in index stocks. Portfolio turnover was a low 10%. As of July 31, 2026, the fund also held a few derivatives, such as currency forwards and swaps on some Chinese shares, at close to zero weight. It uses no leverage and no options strategy. The holdings trade in foreign currencies, so changes in exchange rates against the dollar affect returns.

• VNQI charges 0.12% a year, versus an average of 0.34% for the similar funds below (2nd of 9, cheapest first).
• Of that, 0.08% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $12 in the first year and $154 over 10 years (assuming a 5% annual return).

It adds property companies in Japan, Hong Kong, Australia, Europe and emerging markets, which U.S.-focused portfolios often barely hold, but its large swings suit a supporting role rather than a core one.

VNQI launched in 2010, so it has no record for the 2008 crisis. In the 2020 COVID crash it fell 37.6% and took about 13.5 months to recover. In the 2022 bear market it dropped 31.8% and did not get back to its old peak until Jan. 8, 2026, nearly 39 months later. Its worst calendar year was 2022, at -22.48%. Anyone forced to sell shares during those periods would have locked in losses. The trailing 12-month yield was 5.05% as of Oct. 27, 2026. The fund pays annually, though, so income comes once a year rather than steadily. Under the SEC's standard example, costs come to about $12 in the first year on $10,000. Past results don't predict future returns, and any plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.