The Vanguard Global ex-U.S. Real Estate ETF (VNQI) has emerged as a more attractive option than the FlexShares Global Quality Real Estate Index Fund (GQRE) for investors seeking real estate exposure. VNQI boasts a significantly lower expense ratio of 0.12% compared to GQRE’s 0.46%, alongside a higher asset under management (AUM) of $4.2 billion versus GQRE’s $0.4 billion, enhancing liquidity for investors.
This comparison highlights VNQI’s broader international diversification, with holdings across 30+ countries, primarily in Asia and Australia, while GQRE is more U.S.-centric, focusing entirely on domestic REITs. VNQI also outperformed GQRE in the past year with an 11.7% return against GQRE’s 6.4%, although GQRE has a stronger five-year performance record.
For investors weighing their options in real estate ETFs, VNQI’s lower costs and higher recent returns make it a compelling choice, while GQRE may still appeal to those prioritizing U.S. exposure. For a deeper dive into these funds, I recommend checking out the full article.
Source: fool.com