NETL vs VNQ: Real Estate ETF Showdown
Institutional side-by-side analysis of fees, dividend cash flows, and underlying holdings overlap.
Key Fundamental Specifications
| Metric | NETL | VNQ |
|---|---|---|
| Annual Expense Ratio | 0.60% | 0.13% Lowest Fee |
| Annual Dividend Yield | 5.25% Higher Yield | 4.12% |
| Assets Under Management (AUM) | $0.1 Billion | $32.4 Billion |
| Number of Holdings | 24 Constituents | 160 Constituents |
| Fund Issuer | Fundamental Income | Vanguard |
| Benchmark Index | Fundamental Income Net Lease Real Estate Index | MSCI US Investable Market Real Estate 25/50 Index |
Top Holdings & Weight Overlap
Constituent weights across both funds:
| REIT Constituent | NETL Weight | VNQ Weight |
|---|---|---|
| O Realty Income Corp. | 11.5% | 3.5% |
| WPC W.P. Carey Inc. | 10.2% | 0.0% |
| NNN NNN REIT Inc. | 9.8% | 0.0% |
| ADC Agree Realty Corp. | 8.9% | 0.0% |
| EPRT Essential Properties Realty | 7.6% | 0.0% |
| PLD Prologis Inc. | 0.0% | 7.4% |
| AMT American Tower Corp. | 0.0% | 6.8% |
| EQIX Equinix Inc. | 0.0% | 6.2% |
| WELL Welltower Inc. | 0.0% | 5.9% |
| SPG Simon Property Group | 0.0% | 4.1% |
Institutional Verdict: NETL or VNQ?
Fee Advantage: VNQ offers the lower expense ratio at 0.13% vs 0.60%. Over a 20-year holding period, lower expense drag preserves thousands of dollars in cumulative returns.
Yield Generation: For income-focused investors, NETL provides the higher current dividend yield at 5.25%, making it more attractive for living off dividend cash flow.
Conclusion: If your priority is low-cost passive index tracking, choose VNQ. If your mandate is maximum immediate dividend yield, choose NETL.
Frequently Asked Questions
What is the difference between NETL and VNQ?
NETLease Corporate Real Estate ETF (NETL) is issued by Fundamental Income with an expense ratio of 0.60% and dividend yield of 5.25%. In comparison, Vanguard Real Estate ETF (VNQ) is issued by Vanguard charging 0.13% with a yield of 4.12%.
Which REIT ETF has lower fees: NETL or VNQ?
VNQ has the lower annual expense ratio (0.13% vs 0.60%), saving long-term investors money on compounding fee drag.
Which ETF pays a higher dividend yield: NETL or VNQ?
NETL currently pays the higher annualized dividend yield (5.25% vs 4.12%).
Can I hold both NETL and VNQ in a portfolio?
While you can hold both, NETL and VNQ share significant constituent overlap in top REITs like Prologis, American Tower, and Equinix. Holding both may cause redundant portfolio exposure.