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Products November 1, 2010
Vanguard Launches Global Real Estate Portfolio
The Vanguard Group unveiled an international real estate
index fund with ETF Shares based on the S&P Global ex-U.S. Property
Index.
Reported by Fred Schneyer
A news release said the fund will invest in real estate investment trusts (REITs) and real estate operating companies (REOCs) in emerging markets and developed markets outside the United States.
Vanguard Global ex-U.S. Real Estate Index Fund will offer four share classes: Investor Shares (with an estimated expense ratio of 0.50%); Institutional Shares (0.30%); Signal Shares (0.35%); and ETF Shares, ticker symbol VNQI (0.35%).
Vanguard Global ex-U.S. Real Estate Index Fund will attempt to
replicate the S&P Global ex-U.S. Property Index, a
free-float-adjusted, market-capitalization-weighted index that measures
the equity market performance of 425 international real estate
securities from 35 developed and emerging markets, according to the
announcement.
The minimum initial investment requirement is
$3,000 for Investor Shares. Institutional Shares and Signal Shares will
be available for eligible institutional investors, and ETF Shares may be
purchased through a broker.
Vanguard
will assess purchase and redemption fees of 0.25% on non-ETF shares to
defray the transaction costs and taxes associated with buying and
selling foreign real estate securities.