VNQ - ETF AI Analysis

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Vanguard Real Estate ETF (VNQ)

Rating:69Neutral

Price Target:―

VNQ, the Vanguard Real Estate ETF, has a solid overall rating driven mainly by strong, diversified real estate leaders like Welltower and Prologis, which benefit from healthy financial performance, strategic growth, and generally stable trading trends. Other major holdings such as American Tower, Equinix, and Public Storage also add support through positive earnings and expansion plans, though several face potential overvaluation and some bearish technical signals. The main risk factor is that the fund is concentrated in real estate, and weaker names like Crown Castle, with declining revenue and high leverage, can drag on the ETF’s overall quality.

Positive Factors

Strong Top Holdings

Several key holdings, such as Welltower and Prologis, have delivered strong year-to-date performance, supporting the ETF's overall returns.

Low Expense Ratio

The ETF has a very low expense ratio compared to industry averages, making it cost-efficient for investors.

Large Asset Base

With significant assets under management, the fund benefits from stability and investor confidence.

Negative Factors

Sector Concentration

The ETF is heavily concentrated in the real estate sector, which increases vulnerability to sector-specific risks.

Underperforming Holdings

Some top holdings, like Equinix and Digital Realty, have lagged in performance, potentially dragging down overall returns.

Limited Geographic Diversification

The ETF is almost entirely focused on U.S. markets, offering little exposure to international opportunities.

VNQ vs. SPDR S&P 500 ETF (SPY)

AUM33.87B

RegionNorth America

Expense Ratio0.13%

Beta0.52

IssuerVanguard

Inception DateSep 23, 2004

Dividend Yield3.88%

Asset ClassEquity

Index TrackedMSCI US IMI/Real Estate 25-50

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume2,743,170

30 Day Avg. Volume3,689,152

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

103.16

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering152

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

VNQ Summary

The Vanguard Real Estate ETF (VNQ) is an investment fund that focuses on the U.S. real estate sector, including companies that own or manage properties like shopping malls, office buildings, and apartments. It tracks the MSCI US IMI/Real Estate 25-50 index and includes well-known companies like Prologis and American Tower. Investors might consider VNQ for diversification and the potential for steady income through dividends, as real estate can be a stable asset class. However, it’s important to know that VNQ’s performance can be affected by changes in the real estate market, such as interest rate fluctuations or economic downturns.

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

The Vanguard Real Estate ETF (VNQ) leans heavily on the U.S. real estate sector, with a strong focus on REITs. Prologis and Simon Property are steady performers, buoyed by robust leasing activity and solid financials, offering a positive lift to the fund. However, laggards like Digital Realty and Crown Castle are dragging performance, with bearish trends and operational challenges weighing on their outlooks. The fund’s concentration in real estate means it’s highly exposed to sector-specific dynamics, but its diversification across retail, office, and residential REITs provides some balance amid mixed market conditions.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
WELL	Welltower	9.14%	$6.00B	$126.79B	49.44%	77 Outperform
PLD	Prologis	7.84%	$5.15B	$123.32B	19.59%	76 Outperform
AMT	American Tower	5.55%	$3.64B	$82.51B	-0.76%	71 Outperform
EQIX	Equinix	4.84%	$3.18B	$75.80B	-16.17%	73 Outperform
SPG	Simon Property	3.99%	$2.62B	$59.78B	6.96%	70 Outperform
DLR	Digital Realty	3.59%	$2.35B	$53.51B	-12.84%	69 Neutral
O	Realty Income	3.46%	$2.27B	$53.22B	9.35%	70 Outperform
CBRE	CBRE Group	3.16%	$2.08B	$48.92B	29.76%	70 Outperform
PSA	Public Storage	2.85%	$1.87B	$45.78B	-9.35%	73 Outperform
CCI	Crown Castle	2.61%	$1.71B	$38.51B	-0.38%	45 Neutral

VNQ Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

88.89

Positive

100DMA

89.36

Positive

200DMA

88.02

Positive

Market Momentum

MACD

>-0.01

Negative

RSI

55.94

Neutral

STOCH

70.54

Neutral

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 88.56, equal to the 50-day MA of 88.89, and equal to the 200-day MA of 88.02, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.94 is Neutral, neither overbought nor oversold. The STOCH value of 70.54 is Neutral, 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
VNQ	―	―	$33.87B	0.13%	―
VGT	―	―	$113.15B	0.09%	―
XLK	―	―	$92.28B	0.08%	―
XLF	―	―	$53.14B	0.08%	―
XLV	―	―	$39.70B	0.08%	―
XLC	―	―	$27.15B	0.08%	―

Performance Comparison

VNQ

Vanguard Real Estate ETF

89.37

5.00

5.93%

VGT

Vanguard Information Technology ETF

―

XLK

Technology Select Sector SPDR Fund

―

XLF

Financial Select Sector SPDR Fund

―

XLV

Health Care Select Sector SPDR Fund

―

XLC

Communication Services Select Sector SPDR Fund

―

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.

Disclaimer

This 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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