Vanguard REIT Index VIPERS (VNQ)
The Vanguard REIT Index VIPERS (VNQ) is a domestic stock type fund that makes investments in the sector of real estate only. This fund cannot be purchased by individuals, but can be obtained thru a broker. This is considered a middle size value blend type of fund that has long term high returns with moderate risks and has earned a 3 star rating from Morningstar.
Since its inception in 2004 this fund has achieved a return of 3.73% and the return as of the end of 2009 was at 30.17%.
The total assets of this fund are over $10.9 billion that is invested in 98 different stocks. The annual turnover rate of these stocks is at 10.3%. The investment manager of this fund since its inception has been Gerard c. O’Reilly. His investment style is best for those looking for high level dividend income for a long term growth of capital. If investing in this fund, it is recommended that the funds be left in it for a minimum of 5 years before any decision is made about reshuffling your investment.
The volatility factors associated with this fund for the last three years are a beta at 1.63 and an R squared at 67 with a standard deviation of 39.67.
This is one of the Vanguard funds that has shown to bring back higher than average returns while keep the risk level moderately low as compared to other investments. The Vanguard REIT Index VIPERS (VNQ) is a safe way for an investor to get exposure to the real estate market with minimal risk.