VNQI vs XLRE: Real Estate ETF Showdown
Institutional side-by-side analysis of fees, dividend cash flows, and underlying holdings overlap.
Key Fundamental Specifications
| Metric | VNQI | XLRE |
|---|---|---|
| Annual Expense Ratio | 0.12% | 0.09% Lowest Fee |
| Annual Dividend Yield | 4.60% Higher Yield | 3.32% |
| Assets Under Management (AUM) | $3.6 Billion | $5.9 Billion |
| Number of Holdings | 650 Constituents | 31 Constituents |
| Fund Issuer | Vanguard | State Street SPDR |
| Benchmark Index | S&P Global ex-U.S. Property Index | Real Estate Select Sector Index (S&P 500) |
Top Holdings & Weight Overlap
Constituent weights across both funds:
| REIT Constituent | VNQI Weight | XLRE Weight |
|---|---|---|
| PLD Prologis Inc. | 0.0% | 11.8% |
| WELL Welltower Inc. | 0.0% | 10.2% |
| EQIX Equinix Inc. | 0.0% | 9.4% |
| SPG Simon Property Group | 0.0% | 6.7% |
| PSA Public Storage | 0.0% | 6.2% |
| DLR Digital Realty Trust | 0.0% | 6.0% |
| O Realty Income Corp. | 0.0% | 5.8% |
Institutional Verdict: VNQI or XLRE?
Fee Advantage: XLRE offers the lower expense ratio at 0.09% vs 0.12%. Over a 20-year holding period, lower expense drag preserves thousands of dollars in cumulative returns.
Yield Generation: For income-focused investors, VNQI provides the higher current dividend yield at 4.60%, making it more attractive for living off dividend cash flow.
Conclusion: If your priority is low-cost passive index tracking, choose XLRE. If your mandate is maximum immediate dividend yield, choose VNQI.
Frequently Asked Questions
What is the difference between VNQI and XLRE?
Vanguard Global ex-U.S. Real Estate ETF (VNQI) is issued by Vanguard with an expense ratio of 0.12% and dividend yield of 4.60%. In comparison, Real Estate Select Sector SPDR (XLRE) is issued by State Street SPDR charging 0.09% with a yield of 3.32%.
Which REIT ETF has lower fees: VNQI or XLRE?
XLRE has the lower annual expense ratio (0.09% vs 0.12%), saving long-term investors money on compounding fee drag.
Which ETF pays a higher dividend yield: VNQI or XLRE?
VNQI currently pays the higher annualized dividend yield (4.60% vs 3.32%).
Can I hold both VNQI and XLRE in a portfolio?
While you can hold both, VNQI and XLRE share significant constituent overlap in top REITs like Prologis, American Tower, and Equinix. Holding both may cause redundant portfolio exposure.