AVDS vs. VNQ

Last updated Jun 24, 2026

AVDS (Avantis International Small Cap Equity ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - AVDS is a Foreign Small & Mid Cap Equities fund actively managed by Avantis, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. AVDS is actively managed, while VNQ is passively managed. Over the past year, AVDS returned 28.49% vs 11.59% for VNQ. A 0.52 correlation means they provide meaningful diversification when combined. AVDS charges 0.30%/yr vs 0.13%/yr for VNQ.

Performance

AVDS vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis International Small Cap Equity ETF (AVDS) 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, AVDS achieves a 9.01% return, which is significantly lower than VNQ's 11.77% return.

AVDS

• 1D: -2.06%
• 1M: -2.80%
• YTD: 9.01%
• 6M: 8.61%
• 1Y: 28.49%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VNQ

• 1D: 1.31%
• 1M: 1.13%
• YTD: 11.77%
• 6M: 12.16%
• 1Y: 11.59%
• 3Y*: 11.30%
• 5Y*: 2.83%
• 10Y*: 5.44%

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

AVDS vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
AVDS Avantis International Small Cap Equity ETF	9.01%	38.18%	3.20%	3.58%
VNQ Vanguard Real Estate ETF	11.77%	3.24%	4.81%	4.95%

Correlation

The correlation between AVDS and VNQ is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (All Time) Calculated using the full available price history since Jul 20, 2023	0.52

The correlation between AVDS and VNQ has been stable across timeframes, ranging from 0.44 to 0.52 - a consistent structural relationship.

Return for Risk

AVDS vs. VNQ — Risk / Return Rank

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

AVDS

AVDS Risk / Return Rank: 54
AVDS Sharpe Ratio Rank: 57
AVDS Sortino Ratio Rank: 55
AVDS Omega Ratio Rank: 56
AVDS Calmar Ratio Rank: 48
AVDS Martin Ratio Rank: 53

VNQ

VNQ Risk / Return Rank: 26
VNQ Sharpe Ratio Rank: 24
VNQ Sortino Ratio Rank: 23
VNQ Omega Ratio Rank: 22
VNQ Calmar Ratio Rank: 29
VNQ Martin Ratio Rank: 31

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.

AVDS vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis International Small Cap Equity ETF (AVDS) 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.

	AVDS	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	1.83	0.85	+0.99
Sortino ratio: Return per unit of downside risk	2.53	1.23	+1.30
Omega ratio: Gain probability vs. loss probability	1.33	1.15	+0.18
Calmar ratio: Return relative to maximum drawdown	2.30	1.40	+0.91
Martin ratio: Return relative to average drawdown	8.74	4.37	+4.37

AVDS vs. VNQ - Sharpe Ratio Comparison

The current AVDS Sharpe Ratio is 1.83, which is higher than the VNQ Sharpe Ratio of 0.85. The chart below compares the historical Sharpe Ratios of AVDS 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

AVDS vs. VNQ - Drawdown Comparison

The maximum AVDS drawdown since its inception was -13.51%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for AVDS and VNQ.

Drawdown Indicators

	AVDS	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-13.51%	-73.07%	+59.56%
Max Drawdown (1Y) Largest decline over 1 year	-12.44%	-8.34%	-4.10%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.46%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-34.48%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-42.40%	—
Current Drawdown Current decline from peak	-4.38%	-0.66%	-3.72%
Average Drawdown Average peak-to-trough decline	-2.83%	-13.60%	+10.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.27%	2.66%	+0.61%

Volatility

AVDS vs. VNQ - Volatility Comparison

Avantis International Small Cap Equity ETF (AVDS) has a higher volatility of 5.78% compared to Vanguard Real Estate ETF (VNQ) at 5.19%. This indicates that AVDS'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

	AVDS	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.78%	5.19%	+0.59%
Volatility (6M) Calculated over the trailing 6-month period	13.38%	10.20%	+3.18%
Volatility (1Y) Calculated over the trailing 1-year period	15.61%	13.84%	+1.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.51%	18.86%	-3.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.51%	20.75%	-5.24%

AVDS vs. VNQ - Expense Ratio Comparison

AVDS has a 0.30% expense ratio, which is higher than VNQ's 0.13% expense ratio.

Dividends

AVDS vs. VNQ - Dividend Comparison

AVDS's dividend yield for the trailing twelve months is around 3.37%, less than VNQ's 3.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVDS Avantis International Small Cap Equity ETF	3.37%	2.37%	3.07%	0.72%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VNQ Vanguard Real Estate ETF	3.56%	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 AVDS and VNQ in my portfolio?

AVDS and VNQ have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AVDS or VNQ?

AVDS has higher volatility (5.78%) compared to VNQ (5.19%). In terms of maximum drawdown, AVDS dropped -13.51% vs VNQ's -73.07%.

Which ETF is better, AVDS or VNQ?

On 1-year performance, AVDS leads with 28.49% vs 11.59% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 5.19%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVDS or VNQ?

Over the 1-year period, AVDS has performed better with a 28.49% return vs 11.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVDS or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.30% for AVDS.

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

VNQ has the higher dividend yield at 3.56%, compared with 3.37% for AVDS.

What is the main difference between AVDS and VNQ?

AVDS is categorized as Foreign Small & Mid Cap Equities, while VNQ is REIT. They also come from different issuers: Avantis and Vanguard. Their fees differ too: 0.30% for AVDS and 0.13% for VNQ.

Which has better risk-adjusted returns?

AVDS currently has the higher Sharpe Ratio (1.83 vs 0.85), 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.