Vanguard Real Estate Index Adml

invests all or substantially all of its assets in stocks comprising the MSCI US Investable Market Real Estate 25/50 Index, holding each stock approximately in proportion to its weighting in this index. As such, this Fund is non-diversified.

The Investable Market Real Estate 25/50 Index includes stocks of equity real estate investment trusts (REITs), which own and operate income-producing commercial property, as well as real estate management companies (REMCs). Since REITs represent only a small segment of global stock markets, their performance could suffer in strong real estate markets; there may also be increased volatility as their relative values diminish over time.

Since adopting its current index in February 2018, the Fund has achieved exceptional performance. Admiral shares of the Fund have outshone its peer group by an annualized outperformance margin of 68 basis points through December 2023, thanks to strong contributions from REITs in its portfolio and low expenses; its expense ratio ranks within the lowest decile of its peer group while turnover ranks as one of the lowest in its sector, leading to reduced trading fees and minimal trading fees for transactions.

Not only should the Fund’s diversified portfolio provide low costs, it should also help mitigate market risks by spreading bets among numerous holdings and tapping the collective wisdom of markets to assess valuations and prospects via market cap weighting schemes. Furthermore, this cost-efficient approach reduces frequent portfolio changes, helping reduce transaction costs significantly.

Vanguard, the advisor to The Fund, has an established track record of providing clients with innovative investment products and services. Vanguard has built its name through their low-cost index funds while also offering an array of mutual and exchange-traded fund (ETF) options, including sector-specific strategies.

Vanguard funds are sold by Vanguard Marketing Corporation, a member of FINRA and SIPC. Before investing, it is essential that investors carefully consider their investment objectives, charges and expenses associated with any Vanguard fund before making their decision. A prospectus contains this and other important details regarding this type of fund; contact your financial professional for additional guidance if needed.

Investor shares may incur additional brokerage commissions.

Investment in the Fund involves risk, including possible principal loss. It is not guaranteed by the Federal Deposit Insurance Corporation so before investing it is wise to carefully consider your objectives, risks and charges before investing – this information can be found in its prospectus which can be requested either from the Fund itself or your investment advisor.

Investor Shares have a minimum initial investment requirement of $3,000, which is higher than most Vanguard funds’ minimum initial investments. Admiral Shares may offer better opportunities for diversifying your portfolio at reduced expense levels and have a $100,000 minimum initial investment requirement – offering greater diversification at less cost.