Investors eye Vanguard Real Estate ETF as interest rate cuts loom

Investors are looking at the Vanguard Real Estate Index Fund (VNQ) as interest rate cuts are expected soon. JPMorgan Chase predicts a rate cut in December and more in 2025, which could boost real estate valuations and REIT performance. VNQ offers exposure to various real estate investment trusts (REITs), including retail and healthcare. The fund has a yield of 3.8%, significantly higher than the average S&P 500 stock, providing potential recurring cash flow for investors. Despite modest price growth over the past five years, VNQ's total returns, including dividends, are around 28%. With a low expense ratio of 0.13%, the fund may be an attractive option as market conditions improve for REITs.