Vanguard Real Estate Index VGSLX is one of the best ways to invest in US real estate, charging very little for a broad portfolio that accurately tracks the market and spreads bets over multiple holdings. This fund holds less cash than most active peers – which may help boost returns when markets rise but also decrease performance when stocks slump – while simultaneously holding less debt than its rivals, helping lower risk during market downturns. Morningstar Medalist Rating for Admiral, Institutional, and Investor share classes is Gold; upgraded upgrades also available for more pricier investor share classes.

The VGSLX index funds track the MSCI US Investable Market Real Estate 25/50 Index, a performance measurement tool for publicly traded equity real estate investment trusts and other real estate-related investments. These non-diversified funds employ an indexing investment approach which attempts to mirror their benchmark by allocating all or nearly all their assets to stocks comprising said index. Their top 10 holdings represent 49.8% of their total assets.

This fund boasts an extremely low beta of 0.92, meaning that its movement tends to mirror that of the market when prices fluctuate up and down. Furthermore, its 5-year annualized return falls in the middle third among peers in its category.

Investors should also take note of VGSLX’s portfolio turnover rate, which measures how frequently its manager buys and sells its holdings. A higher turnover can lead to higher expenses and reduced after-tax returns – but at just 9% it remains modest relative to its category averages.

Walter Nejman has been serving Vanguard since 2016 as its lead manager, while other members include Chris Nieves, Jena Stenger and Gerard O’Reilly – each having served for an average tenure of 9.41 years on its management team. It is managed from Vanguard’s headquarters in Davidson, North Carolina.

This fund’s five-year performance falls below its category average; nonetheless, it remains a worthy option for those interested in real estate investments. At its current price-to-earnings ratio of 14.4, this fund appears undervalued compared to industry median. Investors considering purchasing it at discounted prices now or considering its potential in the future could do well to invest. This fund can be found across numerous brokerage accounts, making it simple and straightforward to add it to a diversified portfolio. Furthermore, its diversifying bond allocation makes it an appealing proposition. With an above-national-average yield, this fund offers an ideal way to generate income without taking on undue risk. Remember, however, that total returns do not take into account sales charges which can reduce your after-tax returns and often occur when purchasing through brokers; to reduce these fees altogether look for funds with lower sales charges or buy them directly from Vanguard.