Inside Vanguard’s Commanding Lead In The Real Estate ETF Space

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May 15, 2017 11:40am NYSE:VNQ

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We have been speaking a lot about battles for asset supremacy in certain segments of the ETF market lately between iShares and Vanguard, for example in the “EAFE Equity” and “Emerging Markets” categories to name a few, and today we hone in one area where Vanguard has a commanding advantage in AUM terms presently.

VNQ (Vanguard REIT, Expense Ratio 0.12%, $33 billion in AUM) is more than eight times the size of the next largest fund in the Real Estate category. Next up is iShares’ IYR (iShares U.S. Real Estate, Expense Ratio 0.44%, $4.5 billion in AUM). The third largest fund in this space is also from Vanguard, VNQI (Vanguard Global ex-U.S. Real Estate, Expense Ratio 0.15%, $4.1 billion in AUM), followed by RWX (SPDR Dow Jones International Real Estate, Expense Ratio 0.59%, $3.7 billion in AUM).

Another iShares fund, ICF (iShares Cohen & Steers REIT, Expense Ratio 0.35%, $3.2 billion in AUM), is the fifth largest in this niche in AUM size, but after that iShares only has one other entrant in the top ten funds here at #10 in REM (iShares Mortgage Real Estate Capped, Expense Ratio 0.48%, $1.3 billion in AUM).

SPDRs and Schwab both have ETFs among the other top ten spots here, as there is a fair amount of dispersion across a few issuers in AUM terms after accounting for the giant, VNQ. Year-to-date, VNQ has not stepped off of the gas, as it has reeled in a fresh more than $1.2 billion in new assets via creation flows.

The Vanguard REIT Index Fund (NYSE:VNQ) was trading at $81.93 per share on Monday morning, up $0.65 (+0.80%). Year-to-date, VNQ has declined -0.73%, versus a 7.51% rise in the benchmark S&P 500 index during the same period.

VNQ currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #13 of 20 ETFs in the Real Estate ETFs category.

Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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