Vanguard REIT Index ETF (VNQ)

The Vanguard REIT Index ETF (VNQ) started trading in late September 2004. The ETF tracks the MSCI US REIT Index, minus expenses and fees. VNQ takes a replication approach to tracking the index, attempting to own all of the index's components.

The MSCI US REIT Index measures the performance of around 67% of the US Real Estate Investment Trust market.

The ETF is passively managed, with an expense ratio of 0.1%. The fund's most recent annual turnover rate was 36%.

Although this is subject to change, VNQ pays a quarterly distribution in March, June, September, and December. Distributions may include regular income, short and long term capital gains, unrecaptured section 1250 gains, and return of capital.

As of July 2008, the Vanguard REIT Index ETF held 97 stocks with the following industry breakdown:

Diversified 8.3%
Industrial 9.5%
Office 16.5%
Residential 15.1%
Retail 28.3%
Specialized 22.3%

The Vanguard REIT Index ETF's holdings, as of July 2008, are listed below.