ACWX vs. VNQ

Last updated Jun 12, 2026

ACWX (iShares MSCI ACWI ex U.S. ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - ACWX is a Foreign Large Cap Equities fund tracking the MSCI All Country World ex-U.S. Index, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 10 years, ACWX returned 9.87%/yr vs 5.53%/yr for VNQ. A 0.57 correlation means they provide meaningful diversification when combined. ACWX charges 0.32%/yr vs 0.13%/yr for VNQ.

Performance

ACWX vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI ACWI ex U.S. ETF (ACWX) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ACWX achieves a 13.42% return, which is significantly higher than VNQ's 11.49% return. Over the past 10 years, ACWX has outperformed VNQ with an annualized return of 9.87%, while VNQ has yielded a comparatively lower 5.53% annualized return.

ACWX

• 1D: 3.41%
• 1M: 1.94%
• YTD: 13.42%
• 6M: 14.35%
• 1Y: 28.83%
• 3Y*: 18.66%
• 5Y*: 8.17%
• 10Y*: 9.87%

VNQ

• 1D: -0.07%
• 1M: 0.95%
• YTD: 11.49%
• 6M: 11.16%
• 1Y: 12.43%
• 3Y*: 10.04%
• 5Y*: 2.36%
• 10Y*: 5.53%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ACWX vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ACWX iShares MSCI ACWI ex U.S. ETF	13.42%	32.59%	5.17%	15.63%	-16.07%	7.67%	10.29%	21.05%	-13.99%	27.20%
VNQ Vanguard Real Estate ETF	11.49%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between ACWX and VNQ is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.42
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.56
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Mar 31, 2008	0.57

The correlation between ACWX and VNQ shifts across timeframes, from 0.42 (1 year) to 0.57 (all time), reflecting how their relationship changes across market environments.

ACWX vs. VNQ - Sectors Allocation Comparison

Sectors	ACWX	VNQ
Financial Services	23.3%	0.1%
Technology	22.4%	0.3%
Industrials	14.0%	0.0%
Consumer Cyclical	7.3%	-
Healthcare	6.7%	-
Basic Materials	6.7%	1.1%
Consumer Defensive	5.0%	-
Energy	4.8%	0.1%
Communication Services	4.7%	0.6%
Utilities	2.8%	-
Real Estate	1.2%	97.3%

Return for Risk

ACWX vs. VNQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ACWX

ACWX Risk / Return Rank: 64
ACWX Sharpe Ratio Rank: 64
ACWX Sortino Ratio Rank: 63
ACWX Omega Ratio Rank: 66
ACWX Calmar Ratio Rank: 61
ACWX Martin Ratio Rank: 65

VNQ

VNQ Risk / Return Rank: 32
VNQ Sharpe Ratio Rank: 31
VNQ Sortino Ratio Rank: 29
VNQ Omega Ratio Rank: 29
VNQ Calmar Ratio Rank: 36
VNQ Martin Ratio Rank: 36

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ACWX vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI ACWI ex U.S. ETF (ACWX) and Vanguard Real Estate ETF (VNQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	ACWX	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	1.76	0.92	+0.84
Sortino ratio: Return per unit of downside risk	2.43	1.35	+1.08
Omega ratio: Gain probability vs. loss probability	1.32	1.17	+0.16
Calmar ratio: Return relative to maximum drawdown	2.53	1.50	+1.04
Martin ratio: Return relative to average drawdown	9.69	4.71	+4.98

ACWX vs. VNQ - Sharpe Ratio Comparison

The current ACWX Sharpe Ratio is 1.76, which is higher than the VNQ Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of ACWX and VNQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

ACWX vs. VNQ - Drawdown Comparison

The maximum ACWX drawdown since its inception was -60.40%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for ACWX and VNQ.

Drawdown Indicators

	ACWX	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-60.40%	-73.07%	+12.67%
Max Drawdown (1Y) Largest decline over 1 year	-11.42%	-8.34%	-3.08%
Max Drawdown (3Y) Largest decline over 3 years	-13.84%	-17.46%	+3.62%
Max Drawdown (5Y) Largest decline over 5 years	-30.07%	-34.48%	+4.41%
Max Drawdown (10Y) Largest decline over 10 years	-35.38%	-42.40%	+7.02%
Current Drawdown Current decline from peak	-1.82%	-0.49%	-1.33%
Average Drawdown Average peak-to-trough decline	-13.32%	-13.61%	+0.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	2.65%	+0.33%

Volatility

ACWX vs. VNQ - Volatility Comparison

iShares MSCI ACWI ex U.S. ETF (ACWX) has a higher volatility of 7.03% compared to Vanguard Real Estate ETF (VNQ) at 4.74%. This indicates that ACWX's price experiences larger fluctuations and is considered to be riskier than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ACWX	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.03%	4.74%	+2.29%
Volatility (6M) Calculated over the trailing 6-month period	14.36%	9.74%	+4.62%
Volatility (1Y) Calculated over the trailing 1-year period	16.43%	13.52%	+2.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.46%	18.85%	-2.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.43%	20.72%	-3.29%

ACWX vs. VNQ - Expense Ratio Comparison

ACWX has a 0.32% expense ratio, which is higher than VNQ's 0.13% expense ratio.

Dividends

ACWX vs. VNQ - Dividend Comparison

ACWX's dividend yield for the trailing twelve months is around 2.49%, less than VNQ's 3.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACWX iShares MSCI ACWI ex U.S. ETF	2.49%	2.82%	2.97%	2.96%	2.68%	2.74%	1.88%	3.22%	2.60%	2.40%	2.77%	2.51%
VNQ Vanguard Real Estate ETF	3.57%	3.92%	3.85%	3.95%	3.91%	2.56%	3.93%	3.39%	4.74%	4.23%	4.82%	3.92%

Frequently Asked Questions

Can I hold both ACWX and VNQ in my portfolio?

ACWX and VNQ have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ACWX or VNQ?

ACWX has higher volatility (7.03%) compared to VNQ (4.74%). In terms of maximum drawdown, ACWX dropped -60.40% vs VNQ's -73.07%.

Which ETF is better, ACWX or VNQ?

On 10-year performance, ACWX leads with 9.87% vs 5.53% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 4.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ACWX or VNQ?

Over the 10-year period, ACWX has performed better with a 9.87% return vs 5.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ACWX or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.32% for ACWX.

Which ETF pays a higher dividend yield, ACWX or VNQ?

VNQ has the higher dividend yield at 3.57%, compared with 2.49% for ACWX.

What is the main difference between ACWX and VNQ?

ACWX is categorized as Foreign Large Cap Equities, while VNQ is REIT. ACWX tracks MSCI All Country World ex-U.S. Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.32% for ACWX and 0.13% for VNQ.

Which has better risk-adjusted returns?

ACWX currently has the higher Sharpe Ratio (1.76 vs 0.92), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.