Vanguard has introduced the Vanguard Global ex-U.S. Real Estate Index Fund (VNQI), which is linked to the S&P Global ex-U.S. Property Index. It invests in real estate investment trusts (REITs) and real estate operating companies (REOCs) in emerging markets along with developed markets outside the United States. The new global property ETF will complement the Vanguard REIT Index Fund (VNQ), which holds domestic real estate securities.
VNQI charges annual fees of 0.35 percent, quite low compared to peer mutual funds. According to Lipper, international real estate mutual funds have an asset-weighted expense ratio of 1.31 percent on average.