Vanguard Launches Global Real Estate Portfolio

The Vanguard Group unveiled an international real estate index fund with ETF Shares based on the S&P Global ex-U.S. Property Index.

A news release said the fund will invest in real estate investment trusts (REITs) and real estate operating companies (REOCs) in emerging markets and developed markets outside the United States.

Vanguard Global ex-U.S. Real Estate Index Fund will offer four share classes: Investor Shares (with an estimated expense ratio of 0.50%); Institutional Shares (0.30%); Signal Shares (0.35%); and ETF Shares, ticker symbol VNQI (0.35%).

Vanguard Global ex-U.S. Real Estate Index Fund will attempt to replicate the S&P Global ex-U.S. Property Index, a free-float-adjusted, market-capitalization-weighted index that measures the equity market performance of 425 international real estate securities from 35 developed and emerging markets, according to the announcement.

The minimum initial investment requirement is $3,000 for Investor Shares. Institutional Shares and Signal Shares will be available for eligible institutional investors, and ETF Shares may be purchased through a broker.

Vanguard will assess purchase and redemption fees of 0.25% on non-ETF shares to defray the transaction costs and taxes associated with buying and selling foreign real estate securities.