Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTAndy Gould, The Motley FoolSun, August 9, 2026 at 5:37 PM GMT+2 4 min readThe choice between the Vanguard Real Estate ETF (NYSEMKT:VNQ) and the Vanguard Global ex-U.S. Real Estate ETF (NASDAQ:VNQI) largely comes down to whether an investor wants domestic REIT exposure or international diversification.Both funds are low-cost offerings from Vanguard designed to provide broad exposure to real estate equities. While VNQ targets the U.S. market exclusively, VNQI excludes the U.S. entirely. For investors, deciding between them means weighing stronger domestic growth in recent years against international income potential.Snapshot (cost & size)MetricVNQIVNQIssuerVanguardVanguardExpense ratio0.12%0.13%1-year return (as of Aug. 7, 2026)3.40%13.87%Dividend yield4.68%3.51%Beta0.930.99AUM$3.9 billion$73.1 billionBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.With expense ratios of just 0.12% and 0.13%, both funds are significantly cheaper than the average actively managed real estate fund. However, VNQI offers a notably higher dividend yield of 4.68% compared to 3.51% for VNQ -- a meaningful gap for yield-focused investors.Performance & risk comparisonMetricVNQIVNQMax drawdown (five-year)(35.77%)(34.50%)Growth of $1,000 over five years (total return)$966$1,116What's insideLaunched in 2004, VNQ primarily invests in U.S. Real Estate Investment Trusts (REITs) that own and manage income-producing commercial properties. The fund focuses exclusively on the domestic market and holds 143 positions. Its top holdings are the Vanguard Real Estate II Index (NASDAQMUTFUND:VRTPX) at 14.4%, Welltower (NYSE:WELL) at 8.4%, and Prologis (NYSE:PLD) at 6.7%.VNQI offers a straightforward way to gain broad exposure to international real estate equity markets across more than 30 countries. The fund holds 711 positions, far more than VNQ. Its top holdings include Goodman Group (ASX:GMG) at 4.2%, Mitsubishi Estate (OTC:MITEF) at 3.0%, and Mitsui Fudosan (TYO:8801) at 2.4%. VNQI was launched in 2010.For more guidance on ETF investing, check out the full guide at this link.Which looks like the better buyThe gap between these two funds is really a story about where real estate investing has -- and hasn't -- been rewarded lately.U.S. commercial property owners have benefited from resilient demand in sectors like data centers and healthcare facilities, which helps explain VNQ's stronger recent returns. That's not unusual after a period of U.S. economic outperformance. Domestic real estate tends to track closely with local growth, interest-rate expectations, and consumer demand.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info