Vanguard Real Estate Index Admiral Shares (VGSLX) are an affordable way to track the performance of public REITs, providing exposure to commercial and industrial properties as well as rental apartments, self-storage facilities, and data centers. Their broad property types and market caps coverage helps avoid making concentrated sector bets that could backfire; additionally their expense ratio is 90% lower than average – making this fund one of the best values available among real estate mutual funds.

This fund seeks to achieve an appropriate blend of income and long-term capital appreciation by tracking the MSCI US Investable Market Real Estate 25/50 Index. With its broad focus and exposure to various REITs, this fund should thrive when markets favor publicly traded REITs while its relatively low fee may help it outperform actively managed peers over time.

Though its costs may be relatively modest, this fund has produced impressive results since adjusting to its current benchmark in 2018. The fund’s admiral share class outperformed both category averages and active peers until 2023; Crown Castle International and American Tower made significant contributions; however, its true strength lies in its cost advantage – its fee being amongst the lowest among its peer group and using market cap weighting as a tool to minimize turnover costs which threaten returns.

Owing to its small cash allocation and inability to hedge exposure to interest rates, this fund remains one of the best values available. Furthermore, its expenses rank among the lowest among its category – something which should help when markets turn against real estate investments.

Notably, the fund invests in REITs which may present various regulatory risks. Investors should be wary of these investments and consider diversifying their portfolio with other asset classes as well.

The fund’s managers are accountable for trading and overseeing the portfolio, providing a more hands-on relationship than many passive index funds can offer. A global team assists them in overseeing trades while responding quickly to any potential problems that may arise. They are compensated on the basis of performance, which promotes a culture of accountability and ensures their interests align closely with those of investors – another reason the fund earned a High People Pillar rating. Vanguard managers utilize its resources to maximize tracking accuracy while keeping fees to an absolute minimum. Additionally, this fund’s managers manage a substantial portion of trading themselves directly, which offers greater insight into operations and enhances their ability to react swiftly to shifting market conditions. This sets it apart from some passive index funds which outsource trading and risk management functions to third-party vendors.