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VNQ - ETF AI Analysis
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Vanguard Real Estate ETF (VNQ)
Rating:68Neutral
Price Target:―
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)
AUM33.74B
RegionNorth America
Expense Ratio0.13%
Beta0.54
IssuerVanguard
Inception DateSep 23, 2004
Dividend Yield3.97%
Asset ClassEquity
Index TrackedMSCI US IMI/Real Estate 25-50
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume3,085,058
30 Day Avg. Volume3,588,767
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
102.77Price 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) is heavily concentrated in U.S. real estate, with REITs like Welltower and Prologis leading the charge. Welltower’s steady rise, fueled by strong performance in senior housing, has been a bright spot, while Prologis shows mixed momentum despite robust leasing activity. On the other hand, American Tower and Equinix are dragging the fund, with bearish trends and valuation concerns weighing on their outlook. The fund’s focus on real estate provides diversification across sectors like retail and residential, but recent weakness in data center and storage REITs has tempered overall performance.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Welltower | 8.00% | $5.14B | $137.87B | 51.46% | 77 Outperform | |
| Prologis | 7.78% | $5.00B | $120.45B | 12.64% | 79 Outperform | |
| American Tower | 5.63% | $3.62B | $85.76B | -10.01% | 71 Outperform | |
| Equinix | 5.59% | $3.59B | $72.65B | -22.98% | 73 Outperform | |
| Digital Realty | 3.88% | $2.49B | $56.26B | -12.36% | 69 Neutral | |
| Simon Property | 3.88% | $2.49B | $58.79B | 1.02% | 70 Outperform | |
| Realty Income | 3.54% | $2.27B | $52.73B | 2.28% | 75 Outperform | |
| CBRE Group | 3.07% | $1.97B | $46.24B | 14.82% | 70 Outperform | |
| Public Storage | 2.97% | $1.91B | $47.30B | -19.29% | 73 Outperform | |
| Crown Castle | 2.65% | $1.71B | $39.55B | -10.30% | 45 Neutral |
VNQ Technical Analysis
Negative
―
Price Trends
90.17
Negative
90.17
Negative
88.82
Positive
Market Momentum
-0.14
Positive
42.24
Neutral
11.40
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VNQ, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 89.81, equal to the 50-day MA of 90.17, and equal to the 200-day MA of 88.82, indicating a neutral trend. The MACD of -0.14 indicates Positive momentum. The RSI at 42.24 is Neutral, neither overbought nor oversold. The STOCH value of 11.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VNQ.
VNQ Peer Comparison
Comparison Results
Performance Comparison
VNQ
Vanguard Real Estate ETF
88.85
-1.80
-1.99%
VGT
Vanguard Information Technology ETF
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XLK
Technology Select Sector SPDR Fund
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XLF
Financial Select Sector SPDR Fund
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XLV
Health Care Select Sector SPDR Fund
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XLE
Energy Select Sector SPDR Fund
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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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