5 Best Vanguard ETFs to Diversify Your Portfolio

4. Vanguard Real Estate Index Fund (NYSE:VNQ)

Vanguard Real Estate Index Fund (NYSE:VNQ) is an exchange traded fund that invests exclusively in stocks that real estate investment trusts (REITs) invest in. REITs usually focus on firms purchasing office buildings, hotels, and other real property. 

A premier holding of the Vanguard Real Estate Index Fund (NYSE:VNQ) is Prologis, Inc. (NYSE:PLD), a real estate investment trust that focuses on high-barrier markets. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm AEW Capital Management is a leading shareholder in Prologis, Inc. (NYSE:PLD), with 2 million shares worth more than $326 million.