What Is VNQ? Vanguard Real Estate ETF
Last updated July 2026
Short answer
VNQ is the Vanguard Real Estate ETF, a fund that tracks a US real estate index at a 0.13% expense ratio. It holds real estate investment trusts (REITs) across data centers, cell towers, industrial, retail, residential, and healthcare property (PLD, AMT, EQIX), so it is a real-estate sector bet rather than a broad-market core. Versus VOO, VNQ adds a distinct asset class with a higher yield and sensitivity to interest rates.
VNQ is issued by Vanguard and tracks MSCI US Investable Market Real Estate 25/50. It charges a 0.13% expense ratio, holds approximately ~$35 billion in assets under management, yields about ~3.7%, and launched in September 2004.
What is VNQ?
VNQ is the Vanguard Real Estate ETF, a fund that tracks a US real estate index at a 0.13% expense ratio. It holds real estate investment trusts (REITs) across data centers, cell towers, industrial, retail, residential, and healthcare property (PLD, AMT, EQIX), so it is a real-estate sector bet rather than a broad-market core. Versus VOO, VNQ adds a distinct asset class with a higher yield and sensitivity to interest rates.
VNQ is issued by Vanguard and tracks MSCI US Investable Market Real Estate 25/50, so a single ticker gives you the whole portfolio of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
What does VNQ hold?
VNQ is weighted toward its largest constituents. As of early 2026, the top holdings are:
| Rank | Ticker | Company | % of VNQ | |
|---|---|---|---|---|
| 1 | PLD | Prologis | ~7% | |
| 2 | AMT | American Tower | ~6% | |
| 3 | EQIX | Equinix | ~5% | |
| 4 | WELL | Welltower | ~5% | |
| 5 | DLR | Digital Realty Trust | ~4% | |
| 6 | SPG | Simon Property Group | ~3% | |
| 7 | PSA | Public Storage | ~3% | |
| 8 | O | Realty Income | ~3% | |
| 9 | CCI | Crown Castle | ~3% | |
| 10 | EXR | Extra Space Storage | ~2% |
The remaining holdings make up the balance of the fund, with weights tapering off below the top names. Because the index reconstitutes on a rolling basis, the roster stays current without active management. Each ticker above links to its individual stock guide in Walnut.
How do I invest in VNQ?
There are three common ways to get VNQ exposure. Buy shares (or fractional shares) of VNQ directly at any major broker that lists it. Hold it as a core position and layer more concentrated ideas on top. Or build it into a thematic portfolio in Walnut, so VNQ sits alongside other holdings that express the same thesis, with target weights you can rebalance toward. VNQ trades like a stock during market hours, so you buy it the same way you would any listed share.
New to buying funds? See how to buy an ETF, step by step.
Is VNQ a good buy?
Whether VNQ is a good buy depends less on any single call and more on your time horizon and what you already hold: it tracks MSCI US Investable Market Real Estate 25/50, so the real question is whether you want that exposure in your mix and at what weight. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is VNQ a buy?
The bottom line on VNQ
VNQ is the standard one-ticker way to add US real estate (REIT) exposure, with a higher yield than the broad market and notable sensitivity to interest rates. It works as a diversifying sector or income sleeve around a broad core like VOO, not as a core itself, and its income is largely taxed as ordinary income.
More on VNQ
Whether VNQ is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is VNQ a buy?
VNQ yields ~3.7% as of early 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see VNQ dividend: yield and schedule.
New to funds like VNQ? Start with what an ETF is, then how to buy an ETF, or browse the full guide to ETF investing.
Wondering how VNQ fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in VNQ with AI
Connect the broker you already use and ask Walnut's AI how VNQ fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is VNQ?
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VNQ is the Vanguard Real Estate ETF, a single ticker that holds US real estate investment trusts (REITs) across property types including data centers, cell towers, industrial, retail, residential, healthcare, and self-storage. It gives exposure to real estate as a distinct asset class rather than the broad stock market.
What is VNQ's expense ratio?
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0.13% per year (13 basis points) as of early 2026. On a $10,000 investment, that is about $13 per year in fees, low for a sector fund. Verify the current figure on the Vanguard site.
What is VNQ's dividend yield?
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Approximately 3.7% on a trailing basis as of early 2026, paid quarterly and higher than the broad market because REITs are required to distribute most of their taxable income. Note that REIT distributions are often taxed as ordinary income rather than at qualified-dividend rates.
What companies are in VNQ?
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Large US REITs including Prologis, American Tower, Equinix, Welltower, Digital Realty, Simon Property Group, Public Storage, Realty Income, Crown Castle, and Extra Space Storage. The mix spans data centers, towers, industrial, retail, residential, healthcare, and storage. Weights are approximate, verify on the issuer's site.
VNQ vs VOO: what's the difference?
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VOO holds the S&P 500 across all sectors. VNQ holds only US real estate (REITs), a distinct asset class with a higher yield and more interest-rate sensitivity. VNQ diversifies a stock portfolio rather than duplicating it. Walnut is not an investment adviser, so this is not a recommendation.
Why is VNQ sensitive to interest rates?
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REITs borrow to finance property and pay out most of their income as distributions, so higher interest rates raise their financing costs and make their yields less attractive relative to bonds. As a result VNQ often falls when rates rise sharply and benefits when rates fall.
Does VNQ include data center REITs?
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Yes. Data center and tower REITs such as Equinix, Digital Realty, American Tower, and Crown Castle are among VNQ's largest holdings, which gives it indirect exposure to the same digital-infrastructure and AI build-out demand that drives data center construction.
What is VNQ's AUM?
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Approximately $35 billion as of early 2026, which makes it the largest US real estate ETF. The exact figure moves with markets and flows, so verify on the Vanguard site.
When was VNQ created?
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September 2004. VNQ is Vanguard's flagship real estate fund and the standard one-ticker vehicle for diversified US REIT exposure.
How do I buy VNQ?
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VNQ trades like any stock during US market hours. Buy it through any broker: Robinhood, Fidelity, Schwab, Public, M1, Vanguard, or others. Fractional shares are supported at most modern brokers. Connect your broker to Walnut and the AI can show how a real estate sleeve like VNQ fits with your core.
Is VNQ a good investment?
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VNQ adds a distinct real estate asset class with a higher yield but more interest-rate sensitivity, and its income is largely taxed as ordinary income. Whether it fits depends on your goals, time horizon, and what else you own. Walnut is not an investment adviser, so this is not a recommendation.
How do I compare VNQ to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. VNQ's figures are above; the full method is in Walnut's guide on how to compare ETFs.
Guides that feature VNQ
VNQ is one of the names covered in these guides. Each one puts the fund next to its peers so you can see where it fits rather than judging it alone.
Related ETFs
Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to early 2026; verify current figures against Vanguard's fund page or your broker before investing.