1 No-Brainer Vanguard ETF to Invest $1,000 Into This July

Invest a Thousand Dollars in July's Unmissable Vanguard ETF

The Vanguard Real Estate ETF, a popular investment choice for many, has been delivering impressive returns for its investors. With a 3.6% yield and a robust 7.4% average annualized total return since its inception in September 2004, it's no wonder that this ETF is a favourite among institutional investors.

One of the ETF's largest holdings, Prologis, has shown remarkable growth, with its core funds from operations (FFO) per share growing at a 12% compound annual rate over the past five years. Prologis's compound annual dividend growth is also faster than the S&P 500's 5% and other REITs' 6%, making it a standout performer.

Another major holding, Realty Income Corporation, has been equally impressive. Since its listing in 1994, Realty Income has grown its dividend at a 4.2% compound annual rate and has increased its monthly dividend 131 times. The company's total return since listing three decades ago stands at a robust 13.6%.

The Vanguard Real Estate ETF benefits from the growth and income produced by REITs, investing broadly across the sector. With over 150 REITs in all property sectors, the ETF offers a diverse portfolio that spreads risk and maximises potential returns.

Major institutional investors such as The Vanguard Group itself and BlackRock Advisors LLC hold significant positions in the underlying real estate companies within the ETF. For example, Vanguard Fiduciary Trust Co. owns about 16.39% and BlackRock Advisors LLC about 7.993% of the shares in Realty Income Corporation.

While there's no guarantee that the fund can deliver its current level of return in the future, the potential for the Vanguard Real Estate ETF to produce even higher returns over the long haul is suggested by its past performance and the historical outperformance of REITs compared to stocks.

If the Vanguard Real Estate ETF can maintain its current annualized return, a $1,000 investment made this July could turn into $9,145 in 30 years. Moreover, such an investment would generate $36 of annual income at its current 3.6% yield.

Given its solid long-term performance and easy access to real estate investment, the Vanguard Real Estate ETF is a no-brainer to invest $1,000 this July. Whether you're a seasoned investor or just starting out, this ETF could be a valuable addition to your portfolio.