VNQ - ETF AI Analysis
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Vanguard Real Estate ETF (VNQ)
Rating:69Neutral
Price Target:―
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered strong gains so far this year, showing solid momentum in its real estate holdings.
Leading Real Estate Holdings
Several of the largest positions, including Welltower, Equinix, and other major REITs, have shown strong performance and help drive the fund’s returns.
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of the returns generated by the portfolio.
Negative Factors
High Sector Concentration
Almost all of the ETF’s assets are in the real estate sector, so its performance is heavily tied to the health of property and REIT markets.
Limited Geographic Diversification
The fund is overwhelmingly invested in U.S. companies, offering little protection if the U.S. real estate market weakens.
Notable Lagging Holdings
A few top positions, such as American Tower and CBRE Group, have shown weak performance this year, which can drag on overall returns.
VNQ vs. SPDR S&P 500 ETF (SPY)
AUM35.98B
RegionNorth America
Expense Ratio0.13%
Beta0.50
IssuerVanguard
Inception DateSep 23, 2004
Dividend Yield3.81%
Asset ClassEquity
Index TrackedMSCI US IMI/Real Estate 25-50
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume5,326,769
30 Day Avg. Volume3,472,368
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
107.75Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering138
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
VNQ Summary
Vanguard Real Estate ETF (VNQ) is a fund that lets you invest in a wide range of U.S. real estate companies without buying individual properties. It follows the MSCI US IMI/Real Estate 25-50 Index and mainly holds real estate investment trusts (REITs) that own offices, shopping centers, apartments, data centers, and more. Well-known holdings include Prologis and Equinix. Investors might choose VNQ for diversification and potential income from dividends. A key risk is that real estate values and REIT prices can go up and down with interest rates and the overall market.
How much will it cost me?The Vanguard Real Estate ETF (VNQ) has an expense ratio of 0.13%, meaning you’ll pay $1.30 per year for every $1,000 invested. This is lower than average because it is passively managed, tracking a real estate index to keep costs down.
What would affect this ETF?The Vanguard Real Estate ETF (VNQ) could benefit from a strong U.S. economy, rising demand for commercial and residential properties, and increased interest in specialized REITs like data centers and healthcare facilities. However, it may face challenges from higher interest rates, which can increase borrowing costs for real estate companies, and economic slowdowns that could reduce property values and rental income. Its focus on U.S. real estate and top holdings like Welltower and Prologis make it sensitive to domestic market conditions and sector-specific trends.
VNQ Top 10 Holdings
VNQ is leaning heavily into U.S. real estate, with a clear tilt toward specialized REITs rather than traditional office space. Data-center giants like Equinix and Digital Realty have been rising over the year and are helping power returns, even if their recent trading has been a bit choppy. Welltower and Ventas add steady strength from senior housing, quietly supporting the fund. On the flip side, American Tower and Realty Income have been lagging, acting as a mild drag. Overall, VNQ is a U.S.-centric, REIT-heavy play with tech-infused real estate at its core.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Welltower | 10.22% | $7.28B | $159.37B | 33.34% | 77 Outperform | |
| Prologis | 8.07% | $5.74B | $123.39B | 12.97% | 76 Outperform | |
| Equinix | 6.38% | $4.54B | $101.81B | 25.09% | 73 Outperform | |
| American Tower | 5.06% | $3.60B | $77.43B | -10.03% | 71 Outperform | |
| Simon Property | 4.26% | $3.03B | $63.93B | 11.61% | 70 Outperform | |
| Digital Realty | 4.25% | $3.02B | $66.95B | 4.50% | 69 Neutral | |
| Realty Income | 3.51% | $2.50B | $50.48B | -7.02% | 70 Outperform | |
| Public Storage | 3.13% | $2.23B | $52.69B | -2.89% | 73 Outperform | |
| Vivmark Residential | 2.88% | $2.05B | $45.88B | -3.21% | 70 Outperform | |
| Ventas | 2.74% | $1.95B | $41.97B | 20.78% | 68 Neutral |
VNQ Technical Analysis
Negative
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Price Trends
94.57
Negative
95.39
Negative
92.81
Negative
Market Momentum
-1.62
Positive
33.54
Neutral
29.08
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VNQ, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 91.23, equal to the 50-day MA of 94.57, and equal to the 200-day MA of 92.81, indicating a bearish trend. The MACD of -1.62 indicates Positive momentum. The RSI at 33.54 is Neutral, neither overbought nor oversold. The STOCH value of 29.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VNQ.
VNQ Peer Comparison
Comparison Results
Performance Comparison
VNQ
Vanguard Real Estate ETF
90.65
5.19
6.07%
VGT
Vanguard Information Technology ETF
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XLK
Technology Select Sector SPDR Fund
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XLF
Financial Select Sector SPDR Fund
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XLV
Health Care Select Sector SPDR Fund
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SCHH
Schwab U.S. REIT ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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