VNQ invests in U.S. real estate investment trusts (REITs), offering an appealing 3.60% dividend yield. Top holdings include large REITs like Welltower and Prologis.

Its 3.8% one-year return has lagged other asset classes, since a high-rate environment weighs on debt-heavy REITs. REITs tend to benefit relatively once a rate-cutting cycle takes hold, so it suits investors combining a dividend-income goal with a bet on the rate cycle.