Vanguard Real Estate ETF Emerges as a Dividend Powerhouse Amid Market Shifts
Vanguard's real estate-focused ETF (VNQ) is gaining attention as a high-yield dividend play after a decade of underperformance relative to the S&P 500. The fund tracks 154 REITs, with top holdings including Welltower, Prologis, and American Tower—companies benefiting from structural demand in healthcare, logistics, and digital infrastructure.
REITs' mandatory 90% payout ratio creates a compelling income stream at a 4.3% yield, while depressed valuations suggest upside potential. The sector's inflection point coincides with institutional capital rotating into tangible assets—a trend mirrored in crypto markets where real-world asset (RWA) tokens like those for real estate gain traction.