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VNQ - ETF AI Analysis

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VNQ

Vanguard Real Estate ETF (VNQ)

Rating:69Neutral
Price Target:
VNQ, the Vanguard Real Estate ETF, has a solid overall rating driven mainly by strong, high-weight holdings like Welltower and Prologis, which benefit from robust financial performance, strategic growth, and stable momentum in key real estate segments. The fund’s score is held back somewhat by weaker names such as Crown Castle, where declining revenue, high leverage, and bearish trends introduce notable risk. The main risk factor for VNQ is its concentrated exposure to the real estate sector, meaning broader property-market or interest-rate shocks can affect many of its holdings at once.
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)

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 on a handful of U.S. real estate powerhouses, with health-care REITs like Welltower and Ventas rising and giving the fund a solid tailwind. Industrial giant Prologis and mall owner Simon Property are also steady contributors, helping balance the mix. On the tech-tilted side, data-center names Equinix and Digital Realty have been more mixed, with Equinix losing a bit of momentum. American Tower and CBRE are lagging, acting as small speed bumps. Overall, it’s a U.S.-focused, REIT-heavy play with a tilt toward senior housing, logistics, and digital infrastructure.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Welltower9.78%$7.05B$173.76B42.74%
77
Outperform
Prologis7.79%$5.61B$138.49B36.91%
76
Outperform
Equinix6.34%$4.57B$99.42B33.41%
73
Outperform
American Tower4.70%$3.39B$83.53B-16.28%
71
Outperform
Simon Property4.48%$3.23B$76.41B40.69%
70
Outperform
Digital Realty3.81%$2.74B$69.63B9.49%
69
Neutral
Realty Income3.54%$2.55B$61.12B14.79%
70
Outperform
Public Storage3.05%$2.20B$61.43B16.74%
73
Outperform
Ventas2.61%$1.88B$48.62B36.83%
68
Neutral
CBRE Group2.45%$1.77B$43.27B-4.03%
70
Outperform

VNQ Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
97.15
Positive
100DMA
94.67
Positive
200DMA
91.68
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VNQ, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 98.87, equal to the 50-day MA of 97.15, and equal to the 200-day MA of 91.68, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VNQ.

VNQ Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$39.99B0.13%
69
Neutral
$135.86B0.09%
74
Outperform
$112.36B0.08%
75
Outperform
$59.10B0.08%
72
Outperform
$42.98B0.08%
73
Outperform
$11.73B0.07%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VNQ
Vanguard Real Estate ETF
98.95
13.35
15.60%
VGT
Vanguard Information Technology ETF
XLK
Technology Select Sector SPDR Fund
XLF
Financial Select Sector SPDR Fund
XLV
Health Care Select Sector SPDR Fund
SCHH
Schwab U.S. REIT ETF
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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