Jun 27th, 2009
What’s in my Portfolio: Vanguard REIT Index ETF
We talked about Real Estate Investment Trusts not long ago, and we talked about Exchange Traded Funds awhile back. Now combine the two and we get one of my very small holdings, the Vanguard REIT Index ETF (VNQ).
This is a tiny holding in my Roth IRA; when I say tiny, I mean .14% of my total portfolio. That’s right, not even close to a single percent. Like real estate, this fund hasn’t done all that well, but since it’s from Vanguard, I get the low costs I would expect, and the ETF pays a nice dividend of 9.13%.
As usual, in a tax advantaged account, I have no real tax concerns. Since it’s such a small part of my portfolio, I have no danger of overexposure. And while it hasn’t performed well recently, it will go as real estate goes–and eventually it will come back.
If you are interested in real estate investing without the headache of being a landlord, this is one ETF to really consider.
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