To further round out its index fund and ETF offerings across multiple asset classes, Vanguard has introduced the Vanguard Global ex-U.S. Real Estate Index Fund, which will also have an exchange-traded fund share class.
The fund tracks the S&P Global ex-U.S. Property Index, comprised of 425 international real estate securities from 35 developed markets, and complements the domestic Vanguard REIT Index Fund.
The fund will charge 50 basis points for investor share classes, 30 basis points for institutional shares, and 35 basis points for ETF shares.
“Modest exposure to real estate investments in a broadly diversified investment portfolio can help moderate overall portfolio volatility and serve as a hedge against inflation,” said Vanguard Chief Investment Officer Gus Sauter. “With international real estate securities representing a growing portion of the overall real estate market, a counterpart to our domestic REIT Index Fund is a natural addition to our index fund lineup.”