Vanguard Global REIT currently has assets worth US$833.5 million. The fund seeks to reflect the performance of the S&P Global Property Index, comprising of REITs located in over thirty different countries.
Amongst the top holdings of the REIT is 4.4% in Mitsubishi estate, 3.0% in Sun Hung Kai Properties, 3.0% in Westfield Group, 3.0% Unibail-Rodamco and 2.9% in Mitsui Fudosan Co.
The REIT is sponsored by the Vanguard Group. Its expense ratio is at 0.32% with an ETF of 5.39% for a twelve month yield. Its ETF value has been rising in the past month, to a high of 7.2% in this month and 8.9% in the past three months. Over the past year ending March 2012, the ETF value is up over 36.0%.
According to Morningstar analyst Abby Woodham, "Unlike U.S. real estate funds, which are almost entirely composed of real estate investment trusts (REITs), VNQI has a significant exposure to real estate developers and non-REIT property managers. Developers focus on constructing spaces on new or underutilized land, and unlike REITs that are restricted from breaking new ground in some nations, property developers can take on more speculative projects."
Woodham added. "Developers are more volatile than REITs because their cash flows are less predictable and their payout ratios are generally much lower."
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