Relative Intelligence · Real Estate Equity
How Vanguard Real Estate ETF (VNQ) compares with the whole market and its popular alternatives
Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on VNQ alone. It places VNQ (Vanguard Real Estate ETF) against 17 popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where VNQ stands in the market, and of the alternatives worth a closer look.
Period covered: VNQ's full trading record, from September 2004 through September 2026. The crash tests reach back to 2000 using older funds and the S&P 500. All returns include reinvested dividends. Data as of October 20, 2026.
Data as of October 20, 2026. Full tables and charts read best on a larger screen.
On this page12 sections
Key findings
- What you're buyingVNQ is a real estate bet first: 99% of assets, versus 2% in the S&P 500. At a glance ↓
- Right nowVNQ has gone against the market, falling 3.2% over the past 6 months while the S&P 500 rose 9.1%. Its similar funds were far apart over the past 6 months, from USRT (iShares Core U.S. REIT ETF, down 1.9%) to SRVR (Pacer Data & Infrastructure Real Estate ETF, down 18.7%). Consistency ↓
- Fund or market?VNQ fell 6.4% over the past 3 months even as the S&P 500 rose 3.9%.
- Long termOver the past decade, VNQ returned 5.1% a year against 15.5% a year for the S&P 500 (64.1% in total against 321%). Growth of $10,000 ↓
- In a crashIn the 2022 bear market, VNQ held up better than SRVR (Pacer Data & Infrastructure Real Estate ETF); only KBWY (Invesco KBW Premium Yield Equity REIT ETF) fell less. Crash tests ↓
- DiversificationAgainst the S&P 500, VNQ has a correlation of 0.79 over 5 years, more closely than 61% of ETFs with at least $100 million in assets. Next to an index fund it is some diversification, but not a hedge. Market capture ↓
- Better options
- Popular alternatives
- PFF (iShares Preferred and Income Securities ETF) matched VNQ's return over the past 5 years (a loss of 0.2% a year against 0.7% a year) with 45% less volatility.
- Nearby categories and themes
- IGF (iShares Global Infrastructure ETF, infrastructure equity) and SPSB (State Street SPDR Portfolio Short Term Corporate Bond ETF, investment grade bonds) earned more than VNQ with less volatility over the past 5 years. IGF returned 9.0% a year at 13.9% volatility, against 0.7% a year at 18.9%.
- Versus the S&P 500
- Simply owning the S&P 500 would have done better over the past 5 years: 12.7% a year at 17.1% volatility, against 0.7% at 18.9% for VNQ.
How much would $10,000 in VNQ have grown?
This chart tracks a hypothetical $10,000 investment in VNQ over the past 20 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of VNQ over the same span and VNQ's popular alternatives, among those that traded for the entire period. A second view covers the past 5 years, the period the better options further down the page are judged on. It shows not only where each investment ended up but also how smooth or uneven the path was.
Note: The chart covers the past 20 years rather than VNQ's full 22 years, because most of its popular alternatives have not traded that long.
- $10,000 invested in VNQ at the end of September 2006 would have grown to $28,850 by September 2026, less than the $82,294 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of VNQ, and VTI finished highest, at $81,413.
Choose a period
From the end of September 2006 to the end of September 2026. The scale is logarithmic, so equal steps up the chart are equal percentage gains. Hover over a fund in the key to pick out its line. 1,164 of the 1,663 stocks and funds worth at least $500 million that traded the whole period ended ahead of VNQ; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.
- SPY (S&P 500)$82,294+723% total · +11.1% a year
- VTI$81,413+714% total · +11.1% a year
- BRK-B$78,440+684% total · +10.8% a year
- KO$70,675+607% total · +10.3% a year
- CHT$52,880+429% total · +8.7% a year
- XHB$35,683+257% total · +6.6% a year
- VNQ$28,850+188% total · +5.4% a year
- RWR$26,910+169% total · +5.1% a year
- ICF$26,134+161% total · +4.9% a year
- IYR$25,215+152% total · +4.7% a year
From the end of September 2021 to the end of September 2026. Hover over a fund in the key to pick out its line. 2,385 of the 3,628 stocks and funds worth at least $500 million that traded the whole period ended ahead of VNQ; the chart shows 5, closest alternatives first. The other 3 lines are popular alternatives, shown for context.
- SPY (S&P 500)$19,000+90.0% total · +13.7% a year
- IGF$15,554+55.5% total · +9.2% a year
- USRT$12,209+22.1% total · +4.1% a year
- RWR$11,970+19.7% total · +3.7% a year
- REZ$11,746+17.5% total · +3.3% a year
- SPSB$11,418+14.2% total · +2.7% a year
- SCHH$11,182+11.8% total · +2.3% a year
- FPE$11,079+10.8% total · +2.1% a year
- ICF$10,976+9.8% total · +1.9% a year
- VNQ$10,697+7.0% total · +1.4% a year
VNQ at a glance
This section summarizes the key facts about the fund, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout. These figures serve as the baseline for every comparison that follows.
Note: VNQ began trading on September 29, 2004, so every figure here, including its worst decline, covers only the time since then. None of them reflect the dot-com bust.
- VNQ's deepest decline since it began trading in 2004 was 73.1%, from February 2007 to March 2009. It took about four years from the low to climb back to its old high.
- Over 21 full calendar years, VNQ's best was 2021, when it returned 40.5%, and its worst was 2008, when it lost 37.0%. It lost money in five of those years.
- VNQ is 7.8% below its all-time high.
The fund
- Issuer
- Vanguard
- Began trading
- September 2004
- Expense ratio
- 0.13%per year
- Assets
- $66B
- Category
- Real Estate
Returns
- Past 1 year
- +4.0%total return
- Past 3 years
- +43.4%+12.8% a year
- Past 5 years
- +3.4%+0.7% a year
- Past 10 years
- +64.1%+5.1% a year
- Best calendar year
- +40.5%2021
- Worst calendar year
- −37.0%2008
- Losing years
- 5 of 21full calendar years
Risk
- Volatility
- 18.9%typical yearly swing, 5 years
- Sharpe ratio
- 0.13return per unit of risk, 5 years
- Worst decline ever
- −73.1%Feb 2007 to Mar 2009
- From its all-time high
- −7.8%below the peak
VNQ against the whole market
Where VNQ ranks among every stock and fund, and what across the market has done better.
How does VNQ rank among all ETFs?
This section ranks VNQ on return, volatility, risk-adjusted return and worst decline against every ETF worth at least $100 million with enough history. Where the comparisons with its popular alternatives show how VNQ stacks up against its peers, these rankings show where it stands in the market as a whole.
- On return for the risk taken (the Sharpe ratio), VNQ ranks in the bottom 15% of the 1,560 ETFs with at least $100 million in assets.
Ranked against U.S.-listed ETFs with at least $100M in assets that have enough history for each measure, so the count changes from row to row; smaller ETFs and leveraged funds are left out. Lower volatility and smaller declines rank higher.
| Measure | VNQ | Rank | Standing |
|---|---|---|---|
| 1-year return | +4.0% | 1,635 of 2,485 | bottom 35% |
| 3-year return | +43.4% | 1,294 of 1,949 | bottom 35% |
| 5-year return | +3.4% | 1,318 of 1,560 | bottom 17% |
| 10-year return | +64.1% | 713 of 958 | bottom 27% |
| Volatility, 5 years | 18.9% | 1,028 of 1,560 | bottom 35% |
| Sharpe ratio, 5 years | 0.13 | 1,333 of 1,560 | bottom 16% |
| Worst decline, past 10 years | −42.4% | 627 of 951 | bottom 35% |
What has beaten VNQ on both return and risk?
Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer). VNQ sits where the dashed lines cross. Anything in the green box above and to the left earned more than VNQ with smaller swings, a better trade-off over this period on both counts. Past results are no promise, but a name in the box is worth a closer look.
- 16 stocks and 482 ETFs worth at least $500 million sit in the green region: each earned more than VNQ over the past 5 years with smaller price swings. That is 14% of the 3,633 screened.
- Among those with at least half VNQ's swings, LVHI has the best return for its risk: 17.0% a year at 11.1% volatility, 41% less than VNQ's 18.9%, and a Sharpe ratio (return above cash per unit of volatility) of 1.48 against 0.13 for VNQ.
- None of VNQ's popular alternatives made it, but SPSB (investment grade bonds) did: 2.8% a year at 2.0% volatility, 89% less than VNQ's 18.9%.
Annual return is the annualized total return with dividends reinvested, and volatility the annualized swing in daily prices, both over 5 years. Labeled dots are the strongest picks from the table below and the names called out above, colored by how close they sit to VNQ; faint dots are 94 more of the 498 in the green region (the strongest, one per fund family). 3,633 stocks and funds worth at least $500 million were screened. Hover over a dot for its figures.
- Popular alternatives
- Same and neighboring categories, and shared themes
- The whole market
- Others in the green region
Is there a better investment than VNQ?
Investments that beat VNQ over the past 5 years on return, volatility, drawdowns, consistency, crash losses or fees, from its popular alternatives out to the whole market.
- Among VNQ's popular alternatives, PFF matched VNQ's return over the past 5 years (a loss of 0.2% a year against 0.7% a year) with 45% less volatility.
- USRT tracks the same thing for 0.08% a year against VNQ's 0.13%, and has kept pace over the past decade: about $50 less in fees on $10,000 over 10 years.
- Looking beyond its popular alternatives, IGF (infrastructure equity) and SPSB (investment grade bonds) earned more than VNQ with less volatility over the past 5 years. IGF returned 9.0% a year at 13.9% volatility, against 0.7% a year at 18.9%.
How this works
The table below lists investments that beat VNQ over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes, and, for funds, the same exposure at a lower expense ratio. It checks VNQ's popular alternatives first, then the rest of its own and neighboring categories, then every stock and fund worth at least $500 million, and shows the strongest few in each group. The full list of those with a higher return and lower volatility than VNQ follows the table.
Annual return is the annualized total return with dividends reinvested. Annual return, volatility and the Sharpe ratio cover 5 years; the worst decline covers the past 10 years. Green marks a better figure than VNQ's. "On the frontier" means no other option shown or tested earned more with less volatility. Funds that hold the same thing are shown once. Beyond the popular alternatives, nothing with more than 1.5× VNQ's volatility counts as better.
These figures cover the past 5 years. Green marks a better figure than VNQ's.
| Investment | Why it is better | Past 5 years | Downside | Long run | Fit | ||||
|---|---|---|---|---|---|---|---|---|---|
| Annual return?higher is better | Volatility?lower is calmer | Sharpe?return per unit of risk | Worst decline?past 10 years | 10Y returntotal | Corr. with VNQ?lower diversifies more | Expenseper year | |||
| VNQVanguard Real Estate ETF · this page | +0.7% | 18.9% | 0.13 | −42.4% | +64.1% | 1.00 | 0.13% | ||
 SPYState Street SPDR S&P 500 ETF · S&P 500 | +12.7% | 17.1% | 0.79 | −33.7% | +321% | 0.79 | 0.09% | ||
| Popular alternativesbest 4 shownThe investments people most often weigh against VNQ. 9 of 16 passed at least one test. | |||||||||
USRTiShares Core U.S. REIT ETF · Real Estate Equity | Higher return in most periodsSame exposure, lower expense ratio | +3.0% | 18.9% | 0.25 | −44.4% | +80.1% | 0.99 | 0.08% | |
REZiShares Residential and Multisector Real Estate ETF · Real Estate | Higher return in most periods | +2.5% | 19.1% | 0.23 | −44.1% | +94.7% | 0.93 | 0.48% | |
FRELFidelity MSCI Real Estate Index ETF · Real Estate | Same exposure, lower expense ratio | +0.6% | 18.9% | 0.13 | −42.6% | +71.3% | 1.00 | 0.08% | |
PFFiShares Preferred and Income Securities ETF · Preferred Securities | Similar return, lower volatility | −0.2% | 10.5% | 0.04 | −34.1% | +29.6% | 0.78 | 0.45% | |
| Same and neighboring categories, and shared themesbest 6 shownEverything else in Real Estate Equity and the categories next to it (Preferred Securities, Investment Grade Bonds, Infrastructure Equity), plus VNQ's specific themes. 18 of 25 passed at least one test. | |||||||||
IGFiShares Global Infrastructure ETF · Infrastructure Equity | Higher return, lower volatilityHigher return in most periods | +9.0% | 13.9% | 0.69 | −42.1% | +113% | 0.80 | 0.37% | |
SPSBState Street SPDR Portfolio Short Term Corporate Bond ETF · Investment Grade Bonds | Higher return, lower volatilityHigher Sharpe, smaller worst decline | +2.8% | 2.0% | 1.38 | −11.8% | +29.2% | 0.61 | 0.04% | |
FPEFirst Trust Preferred Securities and Income ETF · Preferred Securities | Higher return, lower volatilityHigher Sharpe, smaller worst decline | +2.0% | 6.7% | 0.34 | −33.3% | +51.3% | 0.72 | 0.83% | |
IBDTiShares iBonds Dec 2028 Term Corporate ETF · Investment Grade Bonds | Similar return, lower volatilityHigher Sharpe, smaller worst decline | +1.5% | 5.0% | 0.32 | −17.8% | — | 0.67 | 0.10% | |
PAVEGlobal X - U.S. Infrastructure Development ETF · Infrastructure Equity | Higher return in most periods | +14.9% | 21.6% | 0.75 | −44.1% | — | 0.81 | 0.47% | |
GRIDFirst Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund · Infrastructure Equity | Higher return in most periods | +12.5% | 22.0% | 0.65 | −40.6% | +383% | 0.76 | 0.56% | |
| The whole marketbest 8 shownEvery other stock and fund worth at least $500 million. 1,154 of 3,594 passed at least one test. | |||||||||
 KOThe Coca-Cola Company · Food & Beverages | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +14.7% | 16.8% | 0.91 | −37.0% | +204% | 0.55 | — | |
CHTChunghwa Telecom Co., Ltd. · Integrated Telecommunications | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +7.7% | 13.3% | 0.63 | −23.8% | +101% | 0.39 | — | |
 VTIVanguard Morningstar Total Stock Market ETF · US Total Market | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +11.5% | 17.5% | 0.71 | −35.0% | +302% | 0.80 | 0.03% | |
 BRK-BBerkshire Hathaway Inc. · Insurance | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.61 | — | |
RECSColumbia Research Enhanced Core ETF · US Large-Cap Equity | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +13.4% | 16.4% | 0.85 | −34.3% | +237% | 0.79 | 0.15% | |
 JNJJohnson & Johnson · Pharmaceuticals | Higher return, lower volatilityHigher Sharpe, smaller worst declineHigher return in most periods | +12.7% | 17.9% | 0.76 | −27.4% | +196% | 0.43 | — | |
 RSGRepublic Services, Inc. · Environmental Services | Higher return, similar volatilityHigher Sharpe, smaller worst declineHigher return in most periodsSmaller losses in recent crashes | +13.9% | 18.5% | 0.80 | −34.0% | +446% | 0.49 | — | |
SUBiShares Short-Term National Muni Bond ETF · Municipal Bonds | Similar return, lower volatilityHigher Sharpe, smaller worst decline | +1.4% | 1.7% | 0.85 | −9.4% | +15.6% | 0.60 | 0.07% | |
What these numbers mean for VNQ
- Annual return
- VNQ returned 0.7% a year over the past 5 years with dividends reinvested, against 12.7% a year for the S&P 500. At that pace, $10,000 became about $10,300. Annual return is the steady yearly rate that would produce the same total result, so investments held over the same span compare fairly. Guide: What is performance and return? →
- Volatility
- VNQ's volatility over the past 5 years was 18.9%, 1.1 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VNQ's return lands within 18.9% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump. Guide: Understanding and measuring risk (volatility) →
- Sharpe ratio
- VNQ's Sharpe ratio over the past 5 years was 0.13, against 0.79 for the S&P 500, so VNQ earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings. Guide: Balancing reward with risk (Sharpe ratio) →
- Worst decline
- VNQ's worst fall from a peak to a low over the past 10 years was 42.4%, against 33.7% for the S&P 500. Losses and gains are not symmetric: climbing back from a 42.4% fall takes a 73.6% gain. Guide: Market crash risk and tail risk →
- Correlation
- Over the past 5 years, VNQ's monthly returns had a correlation of 0.79 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VNQ instead: the lower it is, the more that option would diversify a VNQ holding. Guide: Correlation and diversification →
Show all 498 stocks and funds worth at least $500 million that earned more than VNQ with less volatility
Out of 3,633 tested over 5 years. The strongest 100 are listed, best first, with funds that hold the same thing listed once.
| # | Investment | Found in | Annual return | Volatility | Sharpe | Worst decline | 10Y return | Corr. with VNQ | Expense |
|---|---|---|---|---|---|---|---|---|---|
| 1 | KOThe Coca-Cola Company · Food & Beverages | Whole market | +14.7% | 16.8% | 0.91 | −37.0% | +204% | 0.55 | — |
| 2 | CHTChunghwa Telecom Co., Ltd. · Integrated Telecommunications | Whole market | +7.7% | 13.3% | 0.63 | −23.8% | +101% | 0.39 | — |
| 3 | VTIVanguard Morningstar Total Stock Market ETF · US Total Market | Whole market | +11.5% | 17.5% | 0.71 | −35.0% | +302% | 0.80 | 0.03% |
| 4 |  VOOVanguard S&P 500 ETF · US Large-Cap Equity | Whole market | +12.8% | 16.9% | 0.80 | −34.0% | +324% | 0.79 | 0.03% |
| 5 | BRK-BBerkshire Hathaway Inc. · Insurance | Whole market | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.61 | — |
| 6 | JNJJohnson & Johnson · Pharmaceuticals | Whole market | +12.7% | 17.9% | 0.76 | −27.4% | +196% | 0.43 | — |
| 7 | LVHIFranklin International Low Volatility High Dividend Index ETF · International Equity | Whole market | +17.0% | 11.1% | 1.48 | −32.4% | +194% | 0.70 | 0.40% |
| 8 | FTLSFirst Trust Long/Short Equity ETF · Broad Market | Whole market | +10.2% | 10.4% | 0.99 | −20.6% | +158% | 0.71 | 0.95% |
| 9 |  VXUSVanguard Total International Stock ETF · International Equity | Whole market | +8.2% | 16.4% | 0.57 | −36.0% | +140% | 0.78 | 0.05% |
| 10 | AORiShares Core 60/40 Balanced Allocation ETF · Multi-Asset | Whole market | +6.4% | 10.7% | 0.64 | −23.0% | +118% | 0.85 | 0.20% |
| 11 | ACWViShares MSCI Global Min Vol Factor ETF · International | Whole market | +6.3% | 10.3% | 0.65 | −28.8% | +116% | 0.85 | 0.20% |
| 12 |  VTVVanguard Morningstar Value ETF · US Large-Cap Value | Whole market | +12.1% | 13.7% | 0.90 | −36.8% | +235% | 0.84 | 0.03% |
| 13 |  VEAVanguard FTSE Developed Markets ETF · Developed International Equity | Whole market | +9.3% | 16.9% | 0.61 | −35.8% | +153% | 0.80 | 0.03% |
| 14 | DBAInvesco DB Agriculture Fund · Alternatives | Whole market | +10.7% | 13.8% | 0.81 | −35.3% | +62.2% | 0.18 | 0.90% |
| 15 |  VIGVanguard Dividend Appreciation ETF · US Dividend Equity | Whole market | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.88 | 0.04% |
| 16 |  SCHDSchwab U.S. Dividend Equity ETF · US Dividend Equity | Whole market | +9.7% | 14.3% | 0.72 | −33.4% | +252% | 0.80 | 0.06% |
| 17 |  VTVanguard Total World Stock ETF · Global Equity | Whole market | +10.3% | 16.2% | 0.69 | −34.2% | +223% | 0.83 | 0.06% |
| 18 |  VWOVanguard FTSE Emerging Markets ETF · Emerging Markets Equity | Whole market | +5.2% | 17.5% | 0.38 | −36.4% | +102% | 0.61 | 0.06% |
| 19 | PJULInnovator U.S. Equity Power Buffer ETF · Broad Market | Whole market | +10.5% | 8.6% | 1.20 | −18.2% | — | 0.75 | 0.79% |
| 20 | FJANFT Vest U.S. Equity Buffer ETF - January · Multi-Asset | Whole market | +11.1% | 10.5% | 1.05 | −13.6% | — | 0.72 | 0.85% |
| 21 |  DYNFiShares U.S. Equity Factor Rotation Active ETF · US Multifactor Equity | Whole market | +14.7% | 17.5% | 0.87 | −34.7% | — | 0.76 | 0.26% |
| 22 |  XLVState Street Health Care Select Sector SPDR ETF · Health Care Equity | Whole market | +8.4% | 15.3% | 0.60 | −28.4% | +202% | 0.65 | 0.08% |
| 23 | DFIVDimensional - International Value ETF · International Equity | Whole market | +14.8% | 16.4% | 0.93 | −25.4% | — | 0.71 | 0.27% |
| 24 | AVLVAvantis U.S. Large Cap Value ETF · US Large-Cap Value | Whole market | +14.0% | 16.9% | 0.86 | −19.5% | — | 0.80 | 0.15% |
| 25 | HYGHiShares Interest Rate Hedged High Yield Bond ETF · Bonds | Whole market | +6.6% | 7.1% | 0.94 | −23.9% | +74.5% | 0.64 | 1.12% |
| 26 | HDViShares Core High Dividend ETF · US Dividend Equity | Whole market | +12.9% | 13.0% | 1.00 | −37.0% | +172% | 0.71 | 0.08% |
| 27 | FTSFortis Inc. · Electric Utilities | Whole market | +8.4% | 16.4% | 0.58 | −34.3% | +154% | 0.65 | — |
| 28 | USMViShares MSCI USA Min Vol Factor ETF · US Low-Volatility Equity | Whole market | +7.6% | 12.3% | 0.66 | −33.1% | +176% | 0.85 | 0.15% |
| 29 | SPHQInvesco S&P 500 Quality ETF · US Quality Equity | Whole market | +12.0% | 16.7% | 0.76 | −31.6% | +300% | 0.76 | 0.20% |
| 30 | SDYState Street SPDR S&P Dividend ETF · US Dividend Equity | Whole market | +7.6% | 14.0% | 0.59 | −36.7% | +157% | 0.87 | 0.35% |
| 31 | BUFRFT Vest Laddered Buffer ETF · Buffered Equity | Whole market | +9.9% | 10.5% | 0.96 | −13.7% | — | 0.78 | 0.10% |
| 32 | RWLInvesco S&P 500 Revenue ETF · US Large-Cap Equity | Whole market | +13.7% | 14.4% | 0.97 | −36.1% | +287% | 0.85 | 0.39% |
| 33 | DBEFXtrackers MSCI EAFE Hedged Equity ETF · International Equity | Whole market | +13.1% | 13.8% | 0.96 | −32.5% | +206% | 0.75 | 0.35% |
| 34 | IOOiShares Global 100 ETF · Global Equity | Whole market | +15.7% | 17.2% | 0.94 | −31.4% | +361% | 0.71 | 0.40% |
| 35 | JQUAJPMorgan U.S. Quality Factor ETF · US Quality Equity | Whole market | +13.6% | 15.7% | 0.89 | −32.9% | — | 0.82 | 0.12% |
| 36 | DIVOAmplify CWP Enhanced Dividend Income ETF · Equity Income | Whole market | +11.1% | 11.9% | 0.95 | −30.0% | — | 0.78 | 0.56% |
| 37 | XLPState Street Consumer Staples Select Sector SPDR ETF · Consumer Staples | Whole market | +7.2% | 13.8% | 0.57 | −24.5% | +121% | 0.73 | 0.08% |
| 38 | IQLTiShares MSCI Intl Quality Factor ETF · International Equity | Whole market | +7.8% | 16.5% | 0.54 | −32.2% | +155% | 0.82 | 0.30% |
| 39 |  SGOViShares 0-3 Month Treasury Bond ETF · Treasury Bonds | Whole market | +3.8% | 0.3% | 13.25 | −0.3% | — | 0.10 | 0.09% |
| 40 | QYLDGlobal X - Nasdaq 100 Covered Call ETF · Equity Income | Whole market | +8.4% | 15.0% | 0.62 | −24.7% | +156% | 0.62 | 0.60% |
| 41 | USMCPrincipal U.S. Mega-Cap ETF · Broad Market | Whole market | +14.1% | 16.4% | 0.89 | −30.0% | — | 0.73 | 0.12% |
| 42 | FTCSFirst Trust Capital Strength ETF · US Quality Equity | Whole market | +6.2% | 13.2% | 0.52 | −31.9% | +188% | 0.84 | 0.53% |
| 43 | SPLVInvesco S&P 500 Low Volatility ETF · US Low-Volatility Equity | Whole market | +5.5% | 12.6% | 0.49 | −36.3% | +129% | 0.85 | 0.25% |
| 44 | IWXiShares Russell Top 200 Value ETF · Broad Market | Whole market | +12.7% | 13.8% | 0.94 | −35.8% | +221% | 0.84 | 0.20% |
| 45 | FTGCFirst Trust Global Tactical Commodity Strategy Fund · Alternatives | Whole market | +12.9% | 15.6% | 0.86 | −35.9% | +139% | 0.15 | 0.98% |
| 46 | OMFLInvesco Russell 1000 Dynamic Multifactor ETF · US Multifactor Equity | Whole market | +9.0% | 16.4% | 0.61 | −33.2% | — | 0.81 | 0.29% |
| 47 | PTLCPacer Trendpilot US Large Cap ETF · Broad Market | Whole market | +9.5% | 11.8% | 0.83 | −26.6% | +188% | 0.60 | 0.60% |
| 48 | DIVIFranklin International Core Dividend Tilt Index ETF · International | Whole market | +13.4% | 15.5% | 0.89 | −27.7% | +184% | 0.80 | 0.09% |
| 49 | XYLDGlobal X - S&P 500 Covered Call ETF · International | Whole market | +7.4% | 11.2% | 0.70 | −33.4% | +128% | 0.72 | 0.60% |
| 50 | EQWLInvesco S&P 100 Equal Weight ETF · Broad Market | Whole market | +11.6% | 15.0% | 0.81 | −34.3% | +291% | 0.84 | 0.30% |
| 51 | HDEFXtrackers MSCI EAFE High Dividend Yield Equity ETF · International | Whole market | +12.8% | 14.2% | 0.92 | −36.4% | +134% | 0.73 | 0.09% |
| 52 | DIVBiShares Core Dividend ETF · Dividend & Income | Whole market | +13.9% | 15.4% | 0.93 | −36.9% | — | 0.84 | 0.05% |
| 53 |  MCDMcDonald's Corporation · Restaurants | Whole market | +2.9% | 17.9% | 0.25 | −36.9% | +181% | 0.59 | — |
| 54 | ACIOAptus Collared Income Opportunity ETF · Dividend & Income | Whole market | +9.3% | 11.1% | 0.86 | −14.2% | — | 0.78 | 0.79% |
| 55 | FTHIFirst Trust BuyWrite Income ETF · Dividend & Income | Whole market | +10.3% | 13.3% | 0.81 | −32.7% | +126% | 0.74 | 0.75% |
| 56 | CWBState Street SPDR Bloomberg Convertible Securities ETF · Corporate Bonds | Whole market | +3.7% | 13.7% | 0.34 | −32.1% | +178% | 0.71 | 0.40% |
| 57 | FLQLFranklin U.S. Large Cap Multifactor Index ETF · Broad Market | Whole market | +13.8% | 16.3% | 0.88 | −33.6% | — | 0.78 | 0.15% |
| 58 | FHLCFidelity MSCI Health Care Index ETF · Healthcare | Whole market | +7.3% | 15.4% | 0.53 | −28.8% | +199% | 0.68 | 0.08% |
| 59 | HFXINYLI FTSE International Equity Currency Neutral ETF · International | Whole market | +11.4% | 15.3% | 0.79 | −32.4% | +180% | 0.77 | 0.19% |
| 60 | JAAAJanus Henderson AAA CLO ETF · CLO Bonds | Whole market | +5.1% | 1.7% | 2.98 | −2.6% | — | 0.33 | 0.20% |
| 61 | DSTLDistillate U.S. Fundamental Stability & Value ETF · Broad Market | Whole market | +11.3% | 16.1% | 0.75 | −33.1% | — | 0.84 | 0.39% |
| 62 | DDWMWisdomTree Dynamic International Equity Fund · International | Whole market | +12.3% | 13.4% | 0.94 | −35.0% | +149% | 0.76 | 0.40% |
| 63 | DHSWisdomTree U.S. High Dividend Fund · Dividend & Income | Whole market | +12.0% | 13.9% | 0.89 | −37.4% | +156% | 0.76 | 0.38% |
| 64 | NFRANorthern Trust STOXX Global Broad Infrastructure ETF · International | Whole market | +5.3% | 12.9% | 0.46 | −32.5% | +95.1% | 0.86 | 0.48% |
| 65 | RODMHartford Multifactor Developed Markets (ex-US) ETF · International | Whole market | +10.6% | 13.5% | 0.82 | −36.0% | +141% | 0.82 | 0.29% |
| 66 | RLYState Street Multi-Asset Real Return ETF · Multi-Asset | Whole market | +9.9% | 13.3% | 0.78 | −34.2% | +128% | 0.65 | 0.50% |
| 67 | RAAXVanEck Real Assets ETF · Commodities | Whole market | +11.7% | 15.6% | 0.79 | −33.9% | — | 0.67 | 0.55% |
| 68 | INFLHorizon Kinetics Inflation Beneficiaries ETF · Broad Market | Whole market | +11.8% | 17.8% | 0.72 | −21.3% | — | 0.73 | 0.85% |
| 69 | FDLOFidelity Low Volatility Factor ETF · Broad Market | Whole market | +9.8% | 13.0% | 0.79 | −34.4% | +249% | 0.84 | 0.15% |
| 70 | TDVGT. Rowe Price Dividend Growth ETF · Dividend & Income | Whole market | +9.6% | 13.8% | 0.73 | −19.2% | — | 0.89 | 0.50% |
| 71 | PPHVanEck Pharmaceutical ETF · Healthcare | Whole market | +11.6% | 15.8% | 0.78 | −29.7% | +153% | 0.60 | 0.36% |
| 72 | PTNQPacer Trendpilot 100 ETF · Technology | Whole market | +9.7% | 14.1% | 0.73 | −28.1% | +305% | 0.43 | 0.65% |
| 73 | REGLProShares - S&P MidCap 400 Dividend Aristocrats ETF · Dividend & Income | Whole market | +7.2% | 16.0% | 0.52 | −36.4% | +148% | 0.84 | 0.40% |
| 74 | FTXHFirst Trust Nasdaq Pharmaceuticals ETF · Healthcare | Whole market | +11.9% | 16.9% | 0.75 | −32.1% | +153% | 0.61 | 0.60% |
| 75 | EQLALPS Equal Sector Weight ETF · Broad Market | Whole market | +13.5% | 14.5% | 0.94 | −34.2% | +387% | 0.90 | 0.19% |
| 76 | AVESAvantis Emerging Markets Value ETF · International | Whole market | +8.0% | 17.4% | 0.53 | −27.4% | — | 0.63 | 0.36% |
| 77 | ROUSHartford Multifactor US Equity ETF · Broad Market | Whole market | +12.3% | 14.4% | 0.88 | −35.5% | +238% | 0.86 | 0.19% |
| 78 | NTSXWisdomTree U.S. Efficient Core Fund · Alternatives | Whole market | +8.2% | 17.2% | 0.55 | −31.4% | — | 0.81 | 0.20% |
| 79 | LGLVState Street SPDR US Large Cap Low Volatility Index ETF · Broad Market | Whole market | +7.6% | 13.0% | 0.63 | −36.6% | +199% | 0.89 | 0.12% |
| 80 | SIXHETC 6 Meridian Hedged Equity Index Option ETF · Broad Market | Whole market | +10.2% | 10.2% | 1.00 | −11.7% | — | 0.59 | 0.31% |
| 81 | IDHQInvesco S&P International Developed Quality ETF · International | Whole market | +10.0% | 17.9% | 0.63 | −33.6% | +183% | 0.78 | 0.29% |
| 82 | FDRRFidelity Dividend ETF for Rising Rates · Dividend & Income | Whole market | +12.6% | 15.0% | 0.87 | −36.5% | +265% | 0.81 | 0.15% |
| 83 | DGTState Street SPDR Global Dow ETF · International | Whole market | +13.8% | 15.1% | 0.94 | −34.4% | +261% | 0.80 | 0.50% |
| 84 | HEGDSwan Hedged Equity US Large Cap ETF · Broad Market | Whole market | +7.9% | 9.5% | 0.85 | −14.5% | — | 0.76 | 0.88% |
| 85 | IDOGALPS International Sector Dividend Dogs ETF · International | Whole market | +14.1% | 15.6% | 0.93 | −37.3% | +180% | 0.67 | 0.50% |
| 86 | QDEFNorthern Trust Quality Dividend Defensive ETF · Dividend & Income | Whole market | +12.7% | 13.7% | 0.94 | −35.7% | +228% | 0.87 | 0.40% |
| 87 | OUSAALPS Funds O’Shares U.S. Quality Dividend ETF · Dividend & Income | Whole market | +9.4% | 13.4% | 0.74 | −33.1% | +186% | 0.86 | 0.48% |
| 88 | VSLUApplied Finance Valuation Large Cap ETF · Broad Market | Whole market | +13.7% | 16.2% | 0.88 | −23.8% | — | 0.78 | 0.49% |
| 89 | DJDInvesco Dow Jones Industrial Average Dividend ETF · Dividend & Income | Whole market | +11.8% | 13.3% | 0.91 | −34.7% | +227% | 0.79 | 0.07% |
| 90 | CMDYiShares Bloomberg Roll Select Commodity Strategy ETF · Commodities | Whole market | +9.5% | 15.7% | 0.66 | −31.2% | — | 0.19 | 0.29% |
| 91 | SSUSStrategy Shares Day Hagan Smart Sector ETF · Broad Market | Whole market | +10.5% | 15.4% | 0.73 | −23.8% | — | 0.74 | 0.77% |
| 92 | RSPHInvesco S&P 500 Equal Weight Health Care ETF · Healthcare | Whole market | +6.1% | 16.8% | 0.44 | −30.4% | +177% | 0.75 | 0.40% |
| 93 | CDCVictoryShares US EQ Income Enhanced Volatility Wtd ETF · Dividend & Income | Whole market | +6.0% | 12.5% | 0.53 | −21.4% | +168% | 0.78 | 0.38% |
| 94 | LVHDFranklin U.S. Low Volatility High Dividend Index ETF · Dividend & Income | Whole market | +7.0% | 13.1% | 0.59 | −37.3% | +123% | 0.86 | 0.27% |
| 95 | FDEMFidelity Emerging Markets Multifactor ETF · International | Whole market | +9.2% | 17.0% | 0.61 | −33.7% | — | 0.56 | 0.25% |
| 96 | WWJDInspire International ETF · International | Whole market | +7.4% | 16.6% | 0.52 | −35.8% | — | 0.81 | 0.61% |
| 97 | HNDLStrategy Shares Nasdaq 7HANDL Index ETF · Multi-Asset | Whole market | +3.9% | 11.6% | 0.39 | −23.7% | — | 0.88 | 0.95% |
| 98 | IDUBAptus International Enhanced Yield ETF · International | Whole market | +5.9% | 14.9% | 0.46 | −29.2% | — | 0.76 | 0.44% |
| 99 |  VOVanguard Morningstar Mid-Cap ETF · US Mid-Cap Equity | Whole market | +6.8% | 17.6% | 0.47 | −39.4% | +198% | 0.88 | 0.03% |
| 100 |  EPDEnterprise Products Partners L.P. · Oil & Gas Midstream | Whole market | +16.4% | 17.1% | 0.98 | −58.1% | +178% | 0.48 | — |
VNQ against its popular alternatives
The investments people most often weigh against VNQ, compared period by period and year by year.
How do VNQ's risk and return compare with its alternatives?
This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings. Investments toward the upper left earned more for a smoother ride, and those toward the lower right earned less for a rougher one. The dashed lines cross at VNQ, which divides the map into what did better or worse on each measure.
- BBRE, SCHH and REET were both more rewarding and calmer than VNQ over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, VNQ returned 0.7% a year, less than the S&P 500's 12.7%, with higher volatility (18.9% against 17.1%).
Green points earned more than VNQ with less volatility; red points earned less with more. Hover over a point for its figures. Total returns with dividends reinvested, annualized.
All figures
| Investment | Annual return | Volatility |
|---|---|---|
| SPY S&P 500State Street SPDR S&P 500 ETF | +12.7% | 17.1% |
| XHB State Street SPDR S&P Homebuilders ETF | +5.6% | 28.2% |
| USRT iShares Core U.S. REIT ETF | +3.0% | 18.9% |
| BBRE JPMorgan BetaBuilders MSCI US REIT ETF | +2.8% | 18.8% |
| REZ iShares Residential and Multisector Real Estate ETF | +2.5% | 19.1% |
| RWR State Street SPDR Dow Jones REIT ETF | +2.5% | 19.0% |
| SCHH Schwab U.S. REIT ETF | +1.5% | 18.8% |
| ICF iShares Select U.S. REIT ETF | +1.4% | 19.0% |
| XLRE State Street Real Estate Select Sector SPDR ETF | +1.3% | 19.2% |
| REET iShares Global REIT ETF | +1.0% | 16.9% |
| VNQ This pageVanguard Real Estate ETF | +0.7% | 18.9% |
| FREL Fidelity MSCI Real Estate Index ETF | +0.6% | 18.9% |
| IYR iShares U.S. Real Estate ETF | +0.5% | 18.8% |
| KBWY Invesco KBW Premium Yield Equity REIT ETF | 0.0% | 21.6% |
| PFF iShares Preferred and Income Securities ETF | −0.2% | 10.5% |
| BND Vanguard Total Bond Market ETF | −0.4% | 6.1% |
| VNQI Vanguard Global ex-U.S. Real Estate ETF | −2.1% | 15.5% |
| SRVR Pacer Data & Infrastructure Real Estate ETF | −4.4% | 20.2% |
Has VNQ consistently beaten its popular alternatives?
This section compares VNQ with the investments people most often weigh against it, checking each one over eight periods from one month to ten years. Counting how often an alternative earned more than VNQ helps separate lasting outperformance from a single strong stretch.
- Six of the 17 popular alternatives, led by ICF, REZ and USRT, outperformed VNQ in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- ICF and REZ outperformed VNQ in every long-term period and in all but one short-term period, the most consistent record in the group.
- ICF and XLRE earned more for the risk they took than VNQ (a higher Sharpe ratio) and fell less in their worst decline of the past 10 years.
A green cell means the alternative earned more than VNQ over that period. "Qualified" marks those that did so in at least 3 of 5 short-term periods and 2 of 3 long-term periods.
| Investment | Periods outperformed | Short term | Long term | Risk · 5 years | Fund | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1M | 3M | 6M | YTD | 1Y | 3Y | 5Y | 10Y | Volatilitylower is calmer | Sharpehigher is better | Worst declinepast 10 years | Expense | Assets | Overlapsame sectors | ||
| VNQ Vanguard Real Estate ETF (this page) | — | −0.8% | −6.4% | −3.2% | +7.2% | +4.0% | +43.4% | +3.4% | +64.1% | 18.9% | 0.13 | −42.4% | 0.13% | $66B | — |
| ICF QualifiediShares Select U.S. REIT ETF | 5/5 short3/3 longAll-weather | +0.2% | −5.3% | −2.5% | +11.1% | +7.2% | +46.3% | +7.2% | +70.3% | 19.0% | 0.17 | −40.2% | 0.32% | $2.1B | — |
| REZ QualifiediShares Residential and Multisector Real Estate ETF | 4/5 short3/3 longAll-weather | +0.3% | −6.7% | +2.2% | +10.8% | +9.1% | +51.8% | +13.3% | +94.7% | 19.1% | 0.23 | −44.1% | 0.48% | $799M | 99% |
| USRT QualifiediShares Core U.S. REIT ETF | 3/5 short3/3 long | −1.0% | −7.9% | −1.9% | +11.7% | +8.9% | +50.7% | +15.9% | +80.1% | 18.9% | 0.25 | −44.4% | 0.08% | $4.2B | — |
| RWR QualifiedState Street SPDR Dow Jones REIT ETF | 3/5 short2/3 long | −0.9% | −8.0% | −1.3% | +11.2% | +9.0% | +50.3% | +12.9% | +64.6% | 19.0% | 0.22 | −44.4% | 0.25% | $1.8B | 99% |
| SCHH QualifiedSchwab U.S. REIT ETF | 3/5 short2/3 long | −0.6% | −7.0% | −2.3% | +10.3% | +7.1% | +45.6% | +7.7% | +44.7% | 18.8% | 0.17 | −44.2% | 0.07% | $11B | 99% |
| BBRE QualifiedJPMorgan BetaBuilders MSCI US REIT ETF | 3/5 short2/3 long | −0.9% | −7.8% | −1.6% | +11.6% | +8.3% | +49.2% | +14.7% | — | 18.8% | 0.24 | −43.6% | 0.11% | $1.2B | 99% |
| XLRE Real EstateState Street Real Estate Select Sector SPDR ETF | 1/5 short2/3 long | −0.5% | −5.5% | −3.4% | +7.5% | +3.3% | +43.4% | +6.4% | +89.1% | 19.2% | 0.16 | −38.8% | 0.08% | $7.8B | 99% |
| XHB Consumer DiscretionaryState Street SPDR S&P Homebuilders ETF | 0/5 short2/3 long | −0.8% | −8.8% | −11.4% | −7.1% | −10.4% | +39.2% | +31.1% | +223% | 28.2% | 0.33 | −49.6% | 0.35% | $1.5B | 2% |
| FREL Real EstateFidelity MSCI Real Estate Index ETF | 0/5 short1/3 long | −0.7% | −6.6% | −3.2% | +7.0% | +3.6% | +42.9% | +3.1% | +71.3% | 18.9% | 0.13 | −42.6% | 0.08% | $1.4B | 100% |
| IYR Real EstateiShares U.S. Real Estate ETF | 0/5 short1/3 long | −0.9% | −6.5% | −3.9% | +5.9% | +2.5% | +41.0% | +2.4% | +67.9% | 18.8% | 0.12 | −42.3% | 0.37% | $4.1B | — |
| REET Real EstateiShares Global REIT ETF | 0/5 short1/3 long | −1.6% | −7.7% | −3.7% | +6.3% | +4.5% | +42.3% | +4.9% | +46.9% | 16.9% | 0.14 | −44.6% | 0.14% | $4.7B | — |
| JPRE Real EstateJPMorgan Realty Income ETF | 4/5 short0/3 long | −0.6% | −5.2% | −1.6% | +10.0% | +7.2% | +44.6% | — | — | — | — | −28.4% | 0.71% | $462M | 99% |
| KBWY AlternativesInvesco KBW Premium Yield Equity REIT ETF | 3/5 short0/3 long | −4.8% | −12.1% | +0.2% | +12.0% | +14.7% | +28.9% | +0.1% | +2.1% | 21.6% | 0.11 | −57.7% | 0.35% | $280M | — |
| PFF Dividend & IncomeiShares Preferred and Income Securities ETF | 1/5 short0/3 long | −3.9% | −3.3% | −5.5% | −3.9% | −3.8% | +21.6% | −0.9% | +29.6% | 10.5% | 0.04 | −34.1% | 0.45% | $12B | 11% |
| BND BondsVanguard Total Bond Market ETF | 1/5 short0/3 long | −0.6% | −2.0% | −2.8% | −1.8% | −2.1% | +15.7% | −1.8% | +13.2% | 6.1% | -0.03 | −18.6% | 0.03% | $389B | — |
| SRVR Real EstatePacer Data & Infrastructure Real Estate ETF | 1/5 short0/3 long | −7.1% | −5.7% | −18.7% | −0.6% | −7.7% | +24.4% | −20.3% | — | 20.2% | -0.13 | −41.0% | 0.49% | $292M | 68% |
| VNQI InternationalVanguard Global ex-U.S. Real Estate ETF | 0/5 short0/3 long | −2.1% | −6.1% | −10.8% | −7.1% | −6.9% | +31.9% | −9.8% | +18.8% | 15.5% | -0.06 | −38.3% | 0.12% | $3.6B | 98% |
How did VNQ do year by year?
This table shows each investment's total return in every full calendar year since 2005, along with where VNQ ranked among its popular alternatives each year. Annual results reveal how consistently each one kept pace with VNQ and how far its good and bad years diverged, detail that multiyear averages tend to smooth over.
Note: VNQ began trading on September 29, 2004, so the table starts with 2005, its first full calendar year, and cannot show how it fared during the dot-com bust.
- VNQ finished ahead of the S&P 500 in nine of its 21 full calendar years, and behind it in each of the last four.
- Ranked against its popular alternatives each year, VNQ finished in the top quarter in five of 19 years and in the bottom quarter in no. In 2025, it ranked 7 of 18.
- Among its popular alternatives, BBRE came out ahead of VNQ most often, in four of the seven years both traded.
Newest year first. Green marks a year in which the fund came out ahead of VNQ; gray means the two finished within a fraction of a point. The rank row places VNQ among the alternatives that traded the full year; dark green is the top quarter and red the bottom quarter.
| Investment | Years ahead of VNQ | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| VNQ This pageVanguard Real Estate ETF | — | +3.2% | +4.8% | +11.8% | −26.2% | +40.6% | −4.6% | +28.9% | −6.0% | +4.9% | +8.6% | +2.4% | +30.4% | +2.3% | +17.6% | +8.6% | +28.4% | +30.1% | −37.0% | −16.5% | +35.2% | +12.0% |
| Rank among alternatives | Top quarter in 5 of 19 | 7 of 18 | 12 of 18 | 9 of 18 | 13 of 17 | 9 of 17 | 6 of 17 | 3 of 17 | 12 of 15 | 9 of 15 | 2 of 15 | 7 of 13 | 5 of 12 | 4 of 12 | 6 of 12 | 5 of 11 | 3 of 9 | 3 of 9 | 5 of 9 | 1 of 5 | — | — |
| SPY S&P 500State Street SPDR S&P 500 ETF | 11 of 21 | +17.7% | +24.9% | +26.2% | −18.2% | +28.7% | +18.3% | +31.2% | −4.6% | +21.7% | +12.0% | +1.2% | +13.5% | +32.3% | +16.0% | +1.9% | +15.1% | +26.4% | −36.8% | +5.1% | +15.9% | +4.8% |
| ICF iShares Select U.S. REIT ETF | 7 of 21 | +1.8% | +5.3% | +10.4% | −26.1% | +44.2% | −5.4% | +25.5% | −2.6% | +4.9% | +4.6% | +6.1% | +33.8% | −1.8% | +15.3% | +10.2% | +29.1% | +25.1% | −40.9% | −18.2% | +38.5% | +14.4% |
| REZ iShares Residential and Multisector Real Estate ETF | 9 of 18 | +4.8% | +12.7% | +11.0% | −28.3% | +47.9% | −6.6% | +24.5% | +3.9% | +3.9% | +3.1% | +11.3% | +35.2% | −3.4% | +13.1% | +16.0% | +31.7% | +20.7% | −24.8% | — | — | — |
| USRT iShares Core U.S. REIT ETF | 7 of 18 | +2.4% | +8.6% | +13.7% | −24.4% | +43.3% | −8.1% | +26.0% | −4.7% | +5.3% | +7.2% | +3.9% | +29.1% | −1.0% | +16.7% | +9.3% | +26.1% | +27.0% | −37.2% | — | — | — |
| RWR State Street SPDR Dow Jones REIT ETF | 7 of 21 | +3.2% | +7.8% | +13.8% | −26.1% | +45.5% | −11.4% | +22.7% | −4.5% | +3.5% | +6.4% | +4.1% | +31.8% | +0.9% | +16.9% | +9.0% | +27.9% | +28.1% | −38.8% | −17.8% | +35.6% | +13.6% |
| SCHH Schwab U.S. REIT ETF | 4 of 14 | +2.3% | +5.0% | +11.2% | −25.0% | +41.1% | −15.1% | +22.8% | −4.1% | +2.7% | +6.6% | +4.4% | +31.8% | +1.3% | +16.8% | — | — | — | — | — | — | — |
| BBRE JPMorgan BetaBuilders MSCI US REIT ETF | 4 of 7 | +2.1% | +8.2% | +13.8% | −24.7% | +43.0% | −7.6% | +26.1% | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| XLRE State Street Real Estate Select Sector SPDR ETF | 5 of 10 | +2.6% | +5.1% | +12.4% | −26.3% | +46.1% | −2.2% | +28.6% | −2.4% | +10.7% | +2.8% | — | — | — | — | — | — | — | — | — | — | — |
| XHB State Street SPDR S&P Homebuilders ETF | 8 of 19 | −0.7% | +9.9% | +60.1% | −28.9% | +49.7% | +28.0% | +41.3% | −25.7% | +31.8% | −0.3% | +0.7% | +3.1% | +25.6% | +57.4% | −0.8% | +17.4% | +27.7% | −36.8% | −47.6% | — | — |
| FREL Fidelity MSCI Real Estate Index ETF | 2 of 10 | +3.0% | +5.1% | +11.7% | −26.2% | +40.5% | −5.0% | +28.8% | −4.5% | +8.9% | +7.9% | — | — | — | — | — | — | — | — | — | — | — |
| IYR iShares U.S. Real Estate ETF | 3 of 21 | +3.4% | +4.4% | +11.9% | −25.5% | +38.7% | −5.2% | +28.2% | −4.3% | +9.3% | +7.0% | +1.6% | +26.7% | +1.1% | +18.2% | +5.6% | +26.5% | +30.6% | −39.9% | −18.2% | +34.9% | +9.0% |
| REET iShares Global REIT ETF | 4 of 11 | +8.0% | +2.6% | +10.2% | −24.1% | +32.5% | −10.5% | +24.5% | −5.3% | +7.4% | +5.3% | +0.7% | — | — | — | — | — | — | — | — | — | — |
| JPRE JPMorgan Realty Income ETF | 2 of 3 | +1.4% | +7.4% | +13.4% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| KBWY Invesco KBW Premium Yield Equity REIT ETF | 5 of 15 | −5.3% | −3.5% | +12.9% | −19.0% | +31.3% | −25.8% | +23.3% | −18.2% | +0.8% | +33.1% | −8.2% | +23.7% | +10.8% | +28.9% | −5.2% | — | — | — | — | — | — |
| PFF iShares Preferred and Income Securities ETF | 10 of 18 | +4.9% | +7.2% | +9.3% | −18.2% | +7.2% | +7.9% | +15.9% | −4.7% | +8.1% | +1.3% | +4.3% | +14.1% | −1.0% | +18.2% | −2.0% | +13.9% | +38.4% | −23.9% | — | — | — |
| BND Vanguard Total Bond Market ETF | 5 of 18 | +7.1% | +1.4% | +5.7% | −13.1% | −1.9% | +7.7% | +8.8% | −0.1% | +3.6% | +2.5% | +0.6% | +5.8% | −2.1% | +3.9% | +7.9% | +6.2% | +3.6% | +6.9% | — | — | — |
| SRVR Pacer Data & Infrastructure Real Estate ETF | 2 of 7 | −2.0% | +2.6% | +6.9% | −31.9% | +22.3% | +11.9% | +42.0% | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| VNQI Vanguard Global ex-U.S. Real Estate ETF | 4 of 15 | +21.4% | −2.2% | +7.0% | −22.9% | +5.9% | −7.2% | +21.6% | −9.5% | +26.9% | +2.0% | −1.8% | +2.2% | +2.3% | +43.2% | −16.9% | — | — | — | — | — | — |
Risk and diversification
How VNQ has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.
What were VNQ's worst declines?
A drawdown is the decline from a peak to the lowest point before a new high. This section presents VNQ's five deepest drawdowns since it began trading in 2004, alongside the S&P 500's return over the same dates, and how long each took to recover. Together, these figures show how much an investor could have lost and how long it took to get back to even.
Note: VNQ began trading on September 29, 2004, so this list cannot include the dot-com bust. The crash tests on this page show how older funds and the S&P 500 fared through those years.
- In all five of VNQ's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: VNQ fell 18.0% from May to August 2013, while the S&P 500 slipped only 0.9%.
- The slowest recovery came after VNQ fell 73.1% from February 2007 to March 2009; it did not regain that peak until September 2012, four years later.
Green means VNQ fell less than the S&P 500 over the same dates. Based on daily closing prices with dividends reinvested.
| During | VNQ fell | S&P 500, same dates | Peak | Low | Time to the low | Back at the peak | Time to recover |
|---|---|---|---|---|---|---|---|
| 2008 financial crisis | −73.1% | −50.5% | Feb 2007 | Mar 2009 | 2.1 years | Sep 2012 | 3.5 years |
| Covid crash | −42.4% | −32.8% | Feb 2020 | Mar 2020 | 1 month | Apr 2021 | 13 months |
| 2022 bear market | −34.5% | −9.7% | Dec 2021 | Oct 2023 | 22 months | Jun 2026 | 2.7 years |
| No named crash | −18.0% | −0.9% | May 2013 | Aug 2013 | 3 months | Jun 2014 | 10 months |
| 2015 China and oil sell-off | −17.2% | −4.1% | Jan 2015 | Sep 2015 | 8 months | May 2016 | 8 months |
How did VNQ do in stock market crashes?
This section measures how far VNQ, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000. A smaller decline means an investment held up better, and comparing results across crashes shows whether that resilience was consistent or a one-off.
Note: VNQ began trading on September 29, 2004, so its row reads "Not yet trading" for the dot-com bust. The older alternatives and the S&P 500 show how those crashes played out.
- Among its popular alternatives, BND held up best, falling less than VNQ in all nine crashes they both traded through.
- VNQ fell further than the S&P 500 in five of the nine crashes it has traded through. The clearest case was the 2008 financial crisis, when VNQ fell 70.0% and the S&P 500 fell 55.2%.
Newest crash first. Each figure is the fund's deepest fall within the crash window; green means a smaller fall than VNQ.
| Investment | Held up better | 2023 regional bank crisisMar 2023 | 2022 bear marketJan 2022 | Covid crashFeb 2020 | Late-2018 sell-offSep 2018 | February 2018 volatility shockFeb 2018 | 2015 China and oil sell-offAug 2015 | 2011 euro debt crisisJul 2011 | 2010 flash crashMay 2010 | 2008 financial crisisOct 2007 | Dot-com bustMar 2000 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| VNQ This pageVanguard Real Estate ETF | — | −5.5% | −31.8% | −42.4% | −12.8% | −6.2% | −11.5% | −22.6% | −1.7% | −70.0% | Not yet trading |
| SPY S&P 500State Street SPDR S&P 500 ETF | 5 of 9 | −3.4% | −24.5% | −33.7% | −19.3% | −6.5% | −12.8% | −17.9% | −1.5% | −55.2% | −47.5% |
| ICF iShares Select U.S. REIT ETF | 1 of 9 | −5.6% | −31.6% | −40.2% | −12.7% | −6.0% | −12.3% | −22.9% | −1.9% | −73.4% | — |
| REZ iShares Residential and Multisector Real Estate ETF | 4 of 9 | −6.2% | −31.0% | −44.1% | −10.8% | −5.7% | −12.7% | −20.2% | −1.4% | −64.9% | — |
| USRT iShares Core U.S. REIT ETF | 3 of 9 | −6.1% | −30.8% | −44.4% | −13.1% | −6.3% | −11.7% | −21.6% | −1.5% | −69.2% | — |
| RWR State Street SPDR Dow Jones REIT ETF | 0 of 9 | −6.1% | −32.3% | −44.4% | −13.4% | −6.1% | −12.4% | −22.7% | −1.5% | −71.7% | — |
| SCHH Schwab U.S. REIT ETF | 1 of 7 | −5.4% | −30.9% | −44.2% | −13.4% | −6.3% | −12.4% | −22.7% | — | — | — |
| BBRE JPMorgan BetaBuilders MSCI US REIT ETF | 1 of 4 | −6.0% | −30.8% | −43.6% | −12.3% | — | — | — | — | — | — |
| XLRE State Street Real Estate Select Sector SPDR ETF | 1 of 5 | −5.4% | −32.0% | −38.8% | −12.5% | −6.2% | — | — | — | — | — |
| XHB State Street SPDR S&P Homebuilders ETF | 3 of 9 | −4.2% | −38.7% | −49.6% | −22.7% | −5.0% | −28.2% | −28.9% | −3.1% | −65.2% | — |
| FREL Fidelity MSCI Real Estate Index ETF | 0 of 6 | −5.6% | −31.8% | −42.6% | −12.7% | −6.3% | −12.7% | — | — | — | — |
| IYR iShares U.S. Real Estate ETF | 1 of 9 | −5.5% | −31.2% | −42.3% | −12.7% | −6.1% | −12.9% | −22.5% | −1.7% | −70.3% | — |
| REET iShares Global REIT ETF | 5 of 6 | −4.8% | −31.1% | −44.5% | −9.9% | −5.6% | −10.2% | — | — | — | — |
| JPRE JPMorgan Realty Income ETF | 0 of 1 | −5.7% | — | — | — | — | — | — | — | — | — |
| KBWY Invesco KBW Premium Yield Equity REIT ETF | 1 of 7 | −6.8% | −27.1% | −56.2% | −21.7% | −5.9% | −15.6% | −24.1% | — | — | — |
| PFF iShares Preferred and Income Securities ETF | 8 of 9 | −7.0% | −18.1% | −33.9% | −8.2% | −0.7% | −6.8% | −14.4% | 0.0% | −64.7% | — |
| BND Vanguard Total Bond Market ETF | 9 of 9 | 0.0% | −14.6% | −8.7% | −1.1% | −0.9% | −1.5% | −1.1% | −0.2% | −9.3% | — |
| SRVR Pacer Data & Infrastructure Real Estate ETF | 2 of 4 | −2.5% | −36.3% | −32.9% | −16.0% | — | — | — | — | — | — |
| VNQI Vanguard Global ex-U.S. Real Estate ETF | 3 of 7 | −2.4% | −31.8% | −37.5% | −8.7% | −6.6% | −16.2% | −23.7% | — | — | — |
How closely does VNQ move with the S&P 500?
Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell. An investment that captures more of the gains than the losses has compounded ahead of the market over time. This section compares VNQ with its popular alternatives on both measures, and on beta (how strongly each has moved with the market), over the past 10 years.
- Nine of the 14 popular alternatives had a higher capture ratio (upside capture divided by downside capture) than VNQ's 0.65, led by XHB, REZ and XLRE.
- REZ took just 82% of the S&P 500's losses, against 106% for VNQ, while still keeping 62% of its gains.
- Over the past 10 years, VNQ captured 69% of the S&P 500's gains in rising months and 106% of its losses in falling months, with a beta of 0.89. Its share of the market's losses was larger than its share of the gains.
Monthly total returns over the past 10 years, measured against SPY. 100% capture or a beta of 1.00 means moving in line with the S&P 500. Green marks a better figure than VNQ's: more upside, less downside or a higher capture ratio. Sorted by capture ratio.
| Investment | Upside capture | Downside capture | Capture ratio | Beta |
|---|---|---|---|---|
| VNQ This pageVanguard Real Estate ETF | 69% | 106% | 0.65 | 0.89 |
| XHB State Street SPDR S&P Homebuilders ETF | 112% | 141% | 0.79 | 1.33 |
| REZ iShares Residential and Multisector Real Estate ETF | 62% | 82% | 0.76 | 0.77 |
| XLRE State Street Real Estate Select Sector SPDR ETF | 68% | 97% | 0.71 | 0.84 |
| USRT iShares Core U.S. REIT ETF | 70% | 103% | 0.69 | 0.91 |
| BND Vanguard Total Bond Market ETF | 13% | 19% | 0.69 | 0.15 |
| ICF iShares Select U.S. REIT ETF | 65% | 97% | 0.67 | 0.84 |
| FREL Fidelity MSCI Real Estate Index ETF | 70% | 106% | 0.66 | 0.89 |
| IYR iShares U.S. Real Estate ETF | 69% | 106% | 0.66 | 0.89 |
| PFF iShares Preferred and Income Securities ETF | 39% | 59% | 0.66 | 0.50 |
| RWR State Street SPDR Dow Jones REIT ETF | 69% | 106% | 0.65 | 0.92 |
| SCHH Schwab U.S. REIT ETF | 65% | 107% | 0.61 | 0.89 |
| REET iShares Global REIT ETF | 65% | 107% | 0.61 | 0.89 |
| VNQI Vanguard Global ex-U.S. Real Estate ETF | 55% | 101% | 0.55 | 0.75 |
| KBWY Invesco KBW Premium Yield Equity REIT ETF | 75% | 145% | 0.52 | 1.16 |
What diversifies VNQ?
Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions). This section lists large ETFs and stocks whose returns have had a low correlation with VNQ's. Because such investments tend not to fall at the same time, pairing VNQ with them can reduce a portfolio's overall swings.
- Moving a fifth of the money in VNQ into DBMF would have cut the portfolio's volatility by 22% over the past 5 years and raised its annual return (+1.4% for VNQ alone, +3.6% for the mix).
- FIX made money in four of the five calendar years in which VNQ lost money.
- Among large ETFs, DXJ, SMH and GLD have moved largely independently of VNQ over the past 5 years, with correlations of 0.49 or lower, and each still earned a positive 5-year return.
Only ETFs with at least $1.0B in assets and stocks worth at least $10B, with a correlation below 0.5 over the past 5 years and a positive return, are included, ranked by Sharpe ratio; funds that hold the same thing are shown once. The year columns are the years in which VNQ lost money. The last two columns show a portfolio that is 80% VNQ and 20% the other investment, rebalanced monthly.
ETFs
| Investment | Correlation | 5Y return | Sharpe | 2022 | 2020 | 2018 | 2008 | 2007 | 80/20 mix volatility | 80/20 mix annual return |
|---|---|---|---|---|---|---|---|---|---|---|
| VNQ Vanguard Real Estate ETF (this page) | 1.00 | +3.4% | 0.13 | −26.2% | −4.6% | −6.0% | −37.0% | −16.5% | 19.2% | +1.4% |
| DXJ InternationalWisdomTree Japan Hedged Equity Fund | 0.36 | +225% | 1.34 | +6.0% | +3.9% | −19.8% | −20.8% | −7.4% | 16.4% | +6.4% |
| SMH TechnologyVanEck Semiconductor ETF | 0.49 | +323% | 0.97 | −33.5% | +55.5% | −9.1% | −44.7% | +6.0% | 19.7% | +8.5% |
| GLD CommoditiesSPDR Gold Shares | 0.27 | +126% | 0.96 | −0.8% | +24.8% | −1.9% | +4.9% | +30.4% | 16.6% | +5.0% |
| FLTW TechnologyFranklin FTSE Taiwan ETF | 0.49 | +168% | 0.94 | −27.5% | +29.8% | −9.3% | — | — | 18.5% | +5.9% |
| XLE EnergyState Street Energy Select Sector SPDR ETF | 0.29 | +177% | 0.93 | +64.4% | −32.7% | −18.2% | −39.0% | +36.8% | 17.6% | +6.0% |
| AMLP EnergyAlerian MLP ETF | 0.42 | +111% | 0.89 | +25.5% | −32.3% | −12.6% | — | — | 17.2% | +4.9% |
| DBMF AlternativesiMGP DBi Managed Futures Strategy ETF | -0.26 | +59.7% | 0.82 | +21.6% | +1.8% | — | — | — | 14.9% | +3.6% |
| DBA AlternativesInvesco DB Agriculture Fund | 0.18 | +66.4% | 0.81 | +2.5% | −2.5% | −8.7% | −19.1% | — | 15.9% | +3.5% |
Stocks
| Investment | Correlation | 5Y return | Sharpe | 2022 | 2020 | 2018 | 2008 | 2007 | 80/20 mix volatility | 80/20 mix annual return |
|---|---|---|---|---|---|---|---|---|---|---|
| VNQ Vanguard Real Estate ETF (this page) | 1.00 | +3.4% | 0.13 | −26.2% | −4.6% | −6.0% | −37.0% | −16.5% | 19.2% | +1.4% |
| CAH Medical - DistributionCardinal Health, Inc. | 0.32 | +479% | 1.55 | +54.1% | +10.1% | −24.5% | −39.6% | −9.8% | 17.8% | +8.4% |
| CLS Hardware, Equipment & PartsCelestica Inc. | 0.24 | +3,143% | 1.47 | +1.3% | −2.4% | −16.3% | −20.5% | −25.7% | 21.4% | +20.3% |
| FIX Engineering & ConstructionComfort Systems USA, Inc. | 0.42 | +1,636% | 1.46 | +17.0% | +6.7% | +0.8% | −15.2% | +2.1% | 20.8% | +16.3% |
| MCK Medical - DistributionMcKesson Corporation | 0.27 | +413% | 1.44 | +51.8% | +27.1% | −28.4% | −40.4% | +29.7% | 17.4% | +7.9% |
| MPC Oil & Gas Refining & MarketingMarathon Petroleum Corporation | 0.21 | +690% | 1.41 | +86.6% | −27.4% | −8.2% | — | — | 17.9% | +10.4% |
Common questions
What was VNQ's worst drawdown?
VNQ's deepest decline since it began trading in 2004 was 73.1%, from February 2007 to March 2009. It took about four years from the low to climb back to its old high. Because VNQ launched in September 2004, that record does not include the dot-com bust.
What were VNQ's best and worst years?
Over 21 full calendar years, VNQ's best year was 2021, when it returned 40.5%. Its worst was 2008, with a return of -37.0%.
Is there a better investment than VNQ?
Among VNQ's popular alternatives, PFF matched VNQ's return over the past 5 years (a loss of 0.2% a year against 0.7% a year) with 45% less volatility. USRT tracks the same thing for 0.08% a year against VNQ's 0.13%, and has kept pace over the past decade: about $50 less in fees on $10,000 over 10 years.
Is VNQ more volatile than the S&P 500?
Yes. VNQ's volatility over the past 5 years was 18.9%, 1.1 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, VNQ's return lands within 18.9% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.
What is VNQ's Sharpe ratio?
VNQ's Sharpe ratio over the past 5 years was 0.13, against 0.79 for the S&P 500, so VNQ earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.
How correlated is VNQ with the S&P 500?
Over the past 5 years, VNQ's monthly returns had a correlation of 0.79 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against VNQ instead: the lower it is, the more that option would diversify a VNQ holding.
What are the best alternatives to VNQ?
Of the 17 popular alternatives we compared, six outperformed VNQ in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: ICF, REZ and USRT.
Did VNQ outperform the S&P 500?
VNQ finished ahead of the S&P 500 (SPY) in nine of 21 full calendar years. In 2025, it returned +3.2%, against +17.7% for the index.
How did VNQ do in stock market crashes?
VNQ fell less than the S&P 500 (SPY) in two of the nine major crashes it has traded through, and further in five. The clearest case was the 2008 financial crisis, when VNQ fell 70.0% and the S&P 500 fell 55.2%.
What diversifies VNQ?
These had a low correlation with VNQ over the past 5 years and still earned a positive 5-year return: among large ETFs, DXJ (correlation 0.36), SMH (correlation 0.49) and GLD (correlation 0.27); among large stocks, CAH (correlation 0.32), CLS (correlation 0.24) and FIX (correlation 0.42). A correlation near zero means the two have moved largely independently.
How we measure
- Short-term periods are 1M, 3M, 6M, YTD, 1Y; long-term periods are 3Y, 5Y, 10Y. An investment outperformed in a period when its total return, with dividends reinvested, was higher than VNQ's. Returns within 0.5 points or 3% of VNQ's, whichever is larger, count as a tie.
- "Qualified" means outperforming in at least 3 of 5 short-term periods and 2 of 3 long-term periods. "All-weather" means outperforming in every long-term period and all but one short-term period.
- Popular alternatives are the funds and stocks most often compared with this one. We include only those that trade today, are not leveraged or inverse, and hold at least $200 million.
- Volatility is the annualized standard deviation of daily returns over 5 years, a measure of how much the price typically swings in a year. The Sharpe ratio is the return above cash for each unit of that volatility.
- A decline, or drawdown, runs from a peak to the lowest close before the next high. The worst decline ever uses all the price history we have; comparisons between funds use the past 10 years so that younger funds are judged on the same stretch.
- Sector overlap is the share of assets two funds hold in the same sectors. Correlation and the mixed-portfolio figures use monthly returns.
- Upside and downside capture follow Morningstar's definition: the compound monthly return in the months the S&P 500 rose (or fell), divided by the S&P 500's compound return in those months. Beta measures how strongly monthly returns have moved with the S&P 500. All three use the same window for every investment.
- Figures are computed from daily adjusted prices and update after each trading day. Past performance does not predict future results.
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