ERET vs VNQI

ERETBiShares Environmentally Aware Real Estate ETF

VNQIAVanguard Global ex-U.S. Real Estate ETF

In short

ERET A global developed-market REIT basket that tilts toward landlords with green-certified, energy-efficient buildings instead of screening whole sectors out. Same bricks-and-mortar core, weighted toward the efficient end of it.

VNQI Everything outside the US property market in one ticker: roughly 700 REITs, landlords and developers across 30-plus countries, developed and emerging, for 0.12% a year.

Stated mandate

ERET The fund seeks to track an index of developed-market REITs with greater exposure to green certification and energy efficiency than its parent index.

VNQI The Fund seeks to track the S&P Global ex-U.S. Property Index, an index of international real estate stocks in developed and emerging markets. It generally uses full replication and invests at least 80% of assets in index securities.

Why people hold it

• ERET Costs 0.30% a year, well under the 0.50% median for global and international real estate funds. The green tilt does not carry a boutique price tag.
• Tilt, not exclusion: the index seeks greater exposure to green certification and energy efficiency than its parent, so property-sector breadth stays intact.
• Roughly 300 developed-market REITs behind it, so single-landlord risk stays diluted across offices, malls, warehouses and homes.
• Rules-based iShares index plumbing places it in the upper half of its global real estate peer group.

• VNQI At 0.12% a year, it costs about a quarter of the typical global real estate fund and lands within two basis points of the cheapest in its peer group (HAUZ, 0.10%).
• Full replication across roughly 700 names in more than 30 countries, so no single Tokyo landlord or Sydney mall owner carries the portfolio.vanguard.com
• The benchmark reaches past pure REITs into companies that own, manage and develop property, which is how it covers markets where the REIT structure barely exists.spindices.com
• Trading since 2010 and one of the tighter index trackers in its cohort, which is the whole job for a fund like this.

Worth knowing

• ERET A small, thinly traded fund. Spreads can be wide, so limit orders matter more here than with the giants of the category.
• Plain global REIT trackers cost less: HAUZ at 0.10%, VNQI at 0.12%, REET at 0.14%. The green screen is what the extra buys.
• Launched in 2022, so the record is short. Income arrives on an annual or semiannual schedule, not monthly.

• VNQI Currency exposure is unhedged, so moves in the dollar against the yen, euro and other local currencies feed straight into results.vanguard.com
• Emerging markets and China-linked property companies are in the mix, a risk set the prospectus calls out separately from developed-market investing.vanguard.com
• Distributions land annually or semiannually rather than monthly, so the income arrives in lumps.

Full ERET profile⁠

Full VNQI profile⁠