Vanguard Global ex-U.S. Real Estate Index Fund ETF SharesNASDAQ: VNQI

The Vanguard Global ex-U.S. Real Estate Index Fund ETF invests in global real estate stocks, mainly in the Pacific (49.3% of net assets), Europe (25.7%), and Emerging markets (20.2%). So far in 2024, the VNQI has lagged its US-focused peer, the VNQ, resulting in both ETFs trading at similar dividend yields. I think VNQI offers a higher total return potential as overseas currencies should appreciate driven by interest rate differentials, resulting in larger capital gains.

Vanguard Global ex-U.S. Real Estate ETF is a sell due to poor macro-level prospects for international real estate investment holdings. VNQI has a low expense ratio, substantial dividend yield, and high diversification, but its poor performance outweighs these positive qualities. Investors are likely to see better performance in international funds that are broadly diversified among multiple sectors.

Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares offer exposure to real estate equities outside the U.S. The performance of the VNQI ETF has been disappointing and macro risks are high. Investors may be better off creating their own portfolio of individual REITs or investing in larger U.S.-based REITs with overseas properties.

Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares is a well-diversified fund with exposure to over 700 securities in the global ex-US region. The fund's yield and price returns have been erratic and mostly negative, making it a risky investment. VNQI's major investments in REITs and REMDs have failed to generate consistent price growth, and the fund's total returns have been disappointing.