Use this mutual fund to invest in real estate. This fund tracks an index of public equity real estate investment trusts whose shares represent ownership stakes in properties like office buildings and hotels, offering exposure to an asset class with different returns than stocks or bonds while diversifying your portfolio with these types of assets.
This fund has become increasingly popular with investors looking for exposure to real estate without the fees and risks associated with actively managed funds. Its low expense ratio has allowed it to outshone most active funds within its category over time.
The Vanguard Group, with headquarters in Malvern, Pennsylvania, is one of the world’s largest fund groups. Their equity index group manages a wide array of stock index funds for both U.S. and international markets using innovative index construction techniques with low management fees to provide shareholders with excellent tracking of their target indices.
As with any investment, this fund carries risk. Due to its narrow market sector concentration and currency exposure, investing in foreign securities may expose it to higher share-price volatility than more broadly diversified counterparts. Furthermore, investing in non-diversified foreign securities may expose this fund to greater industry concentration risk than more broadly diversified funds.
As well as its low expenses, this fund features an innovative weighting system to minimize tracking error. Utilizing market cap weighting as its weighting criteria to select securities for inclusion in its portfolio reflects market wisdom on individual valuations and prospects of individual securities within its holdings. Along with minimal turnover costs and transaction costs, this approach has resulted in tight tracking of its benchmark index post fees.
Morningstar’s Medalist Ratings are determined using an in-depth research process that takes an objective approach, taking into account investment strategy, performance, fees and other relevant aspects. As of 10/15/20 this fund had received the Gold Medalist rating in its U.S. Listed Real Estate Fund category; these ratings may change at any time.
Information provided herein is obtained from sources we believe to be reliable; however, we make no guarantee as to its accuracy or completeness. Investors should seek professional advice prior to making any investment decision; Vanguard Marketing Corporation as distributor of Vanguard Funds does not provide tax or legal advice and investors should seek guidance from an appropriately licensed advisor for advice specific to their individual situations. In addition, Vanguard Funds are not guaranteed by either the Federal Deposit Insurance Corporation (FDIC) or any other government agency.
Vanguard strives to make investing accessible for everyone by offering Admiral Shares with lower fund expense ratios and low investment minimums of $3,000 or less, as well as Investor Shares that feature the same low fees and minimums; should your Admiral Shares balance fall below its minimum investment amount, it will automatically switch over into Investor Shares.