⚖️ VNQ vs VNQI Comparison · Free & No Signup

VNQ vs VNQI: US REITs vs International REITs — Domestic vs Global Real Estate

VNQ holds US real estate investment trusts. VNQI holds REITs from 30+ countries outside the US. Both are Vanguard, both are cheap — the choice is about geography and diversification.

💰 VNQI is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict
🤝 BFF Take
VNQ for US Real Estate Conviction — VNQI Adds International Diversification

VNQ (Vanguard Real Estate ETF) and VNQI (Vanguard Global ex-U.S. Real Estate ETF) are Vanguard's US and international REIT offerings. VNQ holds ~170 US REITs — from data centers (Equinix, Digital Realty) to apartments (AvalonBay), industrial warehouses (Prologis), and shopping malls. VNQI holds REITs from 30+ countries — Japan, Hong Kong, Australia, UK, France, and others represent large portions. Both charge similar fees: VNQ 0.13%, VNQI 0.12%. VNQ has dramatically outperformed VNQI over the past decade due to US market dominance — but international REITs trade at lower valuations and offer geographic diversification. Many investors hold both: VNQ as the core US real estate allocation and VNQI as a smaller international satellite.

📋 Quick Takeaways
🏠VNQ holds ~170 US REITs — data centers, apartments, industrial, retail; dominated by US real estate
🌍VNQI holds 30+ countries — Japan, HK, Australia, UK, Europe REITs; geographic diversification outside US
💰Both cost approximately 0.12-0.13% — essentially same fee; performance divergence has been driven by US vs international returns
📊 Data-Based Take: VNQ has the lower fee

Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.

Reviewed by a CFA® Charterholder · Data as of Jul 14, 2026 · Educational only, not financial advice
VNQ
Vanguard Real Estate Index Fund ETF Shares
Expense Ratio
0.13%
1-Year Return
+7.7%
AUM
$69.9B
Holdings
170
VNQI
Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares
Expense Ratio
0.12% ✓
1-Year Return
-0.8%
AUM
$3.9B
Holdings
680

📋 VNQ vs VNQI — Key Facts Side by Side

Metric VNQ VNQI
Fund Name Vanguard Real Estate Index Fund ETF Shares Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares
Issuer Vanguard Vanguard
Tracks Index MSCI US Investable Market Real Estate 25/50 S&P Global ex-U.S. Property
Expense Ratio 0.13% 0.12% ✓
Cost per $10K/yr $13.00 $12.00
AUM $69.9B $3.9B
Holdings 170 680
Inception 2004 2010
1-Year Return +7.73% -0.81%
3-Year Return +9.23% +8.97%
5-Year Return +2.33% -1.30%
Dividend Yield 3.60% 4.81%
Holdings Overlap See holdings overlap →
Avg Bid-Ask Spread 0.01% 0.03%

Expense ratio, AUM, and returns updated Jul 14, 2026 from ETF BFF database. Returns are annualised. Not investment advice.

📊 VNQ vs VNQI — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Which Fund Fits Which Investor?

Often fits investors who...
VNQ
  • want the specific exposure defined by the MSCI US Investable Market Real Estate 25/50
Often fits investors who...
VNQI
  • want the lowest fees: saves ~$1/yr per $10K vs VNQ
  • want broader diversification (680 holdings vs 170)
  • want geographic diversification beyond US stocks

💰 What the Fee Difference Actually Costs

Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.

Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.

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❓ VNQ vs VNQI — Frequently Asked Questions

Many investors use VNQ as their core real estate allocation and add a small VNQI position for international REIT exposure. A common split is 70-80% VNQ and 20-30% VNQI within a real estate sleeve. This provides US REIT liquidity and performance with some international diversification. VNQI's lower recent performance reflects Asia-Pacific real estate weakness (particularly Hong Kong and China-linked REITs), but long-term diversification benefits remain.
REITs are rate-sensitive because they use debt to finance property and pay high dividends that compete with bond yields. The 2022-2023 rate hike cycle (Fed funds rate from 0% to 5.25%) significantly hurt all REIT valuations. VNQ fell 30%+ from its 2021 peak. As rates stabilize or decline, REIT valuations should recover — the underlying property businesses (data centers, industrial, apartments) have strong fundamental performance despite stock price headwinds.
VNQ's US REIT universe is diversified across property types: specialized REITs (data centers, towers, self-storage) now make up the largest weight. Residential REITs (apartments, single-family), industrial REITs (Prologis — warehouses), office REITs, healthcare REITs, and retail REITs round out the portfolio. Data center REITs (Equinix, Digital Realty) and cell tower REITs (American Tower, Crown Castle) have been top performers within the REIT universe.
SCHH (Schwab US REIT ETF) charges 0.07% vs VNQ's 0.13% — nearly half the cost for similar US REIT exposure. SCHH has $7B in AUM, much less than VNQ's $60B, but plenty of liquidity for retail investors. For Schwab account holders or cost-conscious investors, SCHH is worth considering over VNQ. See our VNQ vs SCHH comparison for a detailed breakdown.
VNQI's largest country exposures include Japan (largest weight, ~25%), Australia, Hong Kong, Singapore, UK, France, Germany, and other developed market REIT-friendly countries. Notably, VNQI has limited emerging market exposure — most global REIT markets are in developed countries. Hong Kong REITs have been under pressure from China-related concerns, weighing on VNQI's recent performance.

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📄 VNQ & VNQI Fact Sheets

VNQ Fact Sheet VNQI Fact Sheet
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.