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What's the difference between these three Vanguard REIT's?
Old 07-27-2012, 04:11 PM   #1
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What's the difference between these three Vanguard REIT's?

I've got room in my AA for a REIT. Can someone please help me understand the difference between these three? Which one would you invest in, and is there any reason why you'd choose more than one?


Vanguard REIT Index Fund VGSIX - $3K minimum investment

Vanguard REIT Index Adm (VGSLX) - $10K minimum investment, what's the advantage over VGSIX?

Vanguard REIT Index ETF (VNQ)
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Old 07-27-2012, 04:41 PM   #2
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VGSIX vs VGSLX, I'm pretty sure the only difference is the 0.24% vs 0.10% expense ratio. If you investing 10K or more, go for the admiral fund. This is true for every VG fund as far as I can tell. Many have higher minimums.

VNQ I think has the same investments, it's just a ETF which means you buy and sell shares like a stock, rather than a mutual fund. Search here or google for "mutual funds vs ETF" to find out more. You can buy and sell the ETF mid day (but pay commissions on both), and I believe there are some differences with tax treatment, though for most people I think they'll come out close to the same.
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Old 07-27-2012, 04:57 PM   #3
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The investor and admiral shares are exactly the same investments. The difference is the level of investment. IIRC the admiral shares are $10k min with an expense ratio of 10 basis points, the investor shares are a $3k min and the er is over 20 bp. I would think the ETF is the same investments just an ETF vs a fund but I am not sure.
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Old 07-27-2012, 05:00 PM   #4
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Right. They are three different classes of the same fund.
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Old 07-27-2012, 05:37 PM   #5
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Quote:
Originally Posted by LakeTravis View Post
I've got room in my AA for a REIT. Can someone please help me understand the difference between these three? Which one would you invest in, and is there any reason why you'd choose more than one?


Vanguard REIT Index Fund VGSIX - $3K minimum investment

Vanguard REIT Index Adm (VGSLX) - $10K minimum investment, what's the advantage over VGSIX?

Vanguard REIT Index ETF (VNQ)
If the rest of your portfolio are funds, then buy VGSIX if you are investing between $3k and $10k, buy VGSLX if you are investing $10k or more. If the rest of your portfolio are ETF's then buy VNQ.

The underlying real estate investments are the same (one big pool) but the ERs are slightly different.

YMMV
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