VNQ — Vanguard Real Estate ETF
Vanguard · Expense Ratio: 0.13% · Real Estate · 4bp below the Real Estate category average of 0.17%
Key Facts
| Ticker | VNQ |
| Full Name | Vanguard Real Estate ETF |
| Provider | Vanguard |
| Expense Ratio | 0.13% |
| Category | Real Estate |
| Assets Under Management | $75B |
| Inception Year | 2004 (22 years ago) |
| Number of Holdings | 160 |
| Dividend Yield | ~3.8% (high) |
| Top Holdings | PLD, AMT, EQIX, WELL |
What Is VNQ?
VNQ, managed by Vanguard, launched in 2004, is a major ETF with deep liquidity and tight bid-ask spreads in the Real Estate category. Real estate investment trust ETF providing exposure to commercial and residential property markets. With $75B in assets under management, it benefits from deep institutional liquidity and tight bid-ask spreads.
VNQ in a FIRE Portfolio
This fund serves as a satellite position — adding targeted exposure to real estate within a FIRE portfolio built around a broad-market core.
Satellite holdings typically make up 5-20% of your portfolio. REITs provide diversification from stocks and bonds — a 5-15% allocation adds real asset exposure and steady dividend income for FIRE portfolios.
Cost Analysis: How VNQ's 0.13% Fee Affects Your FIRE Timeline
At 0.13%, VNQ is moderately priced. Annual fees on a $100K investment: $130. Over 30 years, the fee drag shaves approximately 0.8% off your total returns. For a $1M FIRE portfolio, that's about $13,000 in cumulative fees — noticeable but reasonable for most investors.
Dividend Income Potential
With a high dividend yield of approximately 3.8%, here's what VNQ could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $3,800/year | $317/month |
| $250,000 | $9,500/year | $792/month |
| $500,000 | $19,000/year | $1,583/month |
| $1,000,000 | $38,000/year | $3,167/month |
Frequently Asked Questions About VNQ
What is the expense ratio for VNQ?
VNQ has an expense ratio of 0.13%. This is moderately priced — on a $100K portfolio, annual fees are $130. 4bp below the real estate category average of 0.17%.
Is VNQ good for a FIRE portfolio?
This fund serves as a satellite position — adding targeted exposure to real estate within a FIRE portfolio built around a broad-market core. Its 0.13% expense ratio is moderately priced for the Real Estate category.
How does the 0.13% fee affect long-term returns?
At 0.13%, you'll pay $130/year per $100K invested. Over 30 years, fees reduce total returns by approximately 0.8%. Use the embedded calculator below to model the exact impact on your specific portfolio.
Similar ETFs in Real Estate
- SCHH — Schwab US REIT ETF (0.07% · Satellite Position)
- IYR — iShares US Real Estate ETF (0.4% · Satellite Position)
- REET — iShares Global REIT ETF (0.14% · Satellite Position)
- USRT — iShares Core US REIT ETF (0.08% · Satellite Position)
- XLRE — Real Estate Select Sector SPDR (0.1% · Satellite Position)
- RWR — SPDR Dow Jones REIT ETF (0.25% · Satellite Position)