VNQI: Easy Gains Made As International REITs Now Trade At A P/B Of 1x

Ivo Kolchev1.59K FollowersFollow5ShareSavePlay(8min)CommentsSummaryThe Vanguard Global ex-US Real Estate Index Fd;ETF is off to a solid start in 2026, building on strong gains achieved in 2025.This has pushed the key P/B ratio for VNQI holdings to 1x, up from 0.9x in 2025.While a valuation in line with book values only implies circa 3% dividend growth from here, it may also drive lower funding costs for VNQI holdings.As roughly 45.5% of ETF assets are allocated to regions with materially lower interest rates relative to the U.S., I see currency gains as a tailwind for VNQI post 2026.Key risks in the investment case include a rise in long-term interest rates, the economy underperforming baseline expectations, as well as a reversal of recent U.S. dollar weakness. anyaberkut/iStock via Getty Images Introduction The Vanguard Global ex-US Real Estate Index Fd;ETF (VNQI) is off to a strong start in 2026, benefiting from a decline in bond yields as well as further weakness in the U.S. dollar (This article was written byIvo Kolchev1.59K FollowersFollowI ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view.

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