DLS vs. VNQ

Last updated Jun 4, 2026

DLS (WisdomTree International SmallCap Dividend) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - DLS is a Foreign Small & Mid Cap Equities fund tracking the WisdomTree International SmallCap Dividend 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, DLS returned 7.46%/yr vs 5.21%/yr for VNQ. A 0.57 correlation means they provide meaningful diversification when combined. DLS charges 0.58%/yr vs 0.13%/yr for VNQ.

Performance

DLS vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree International SmallCap Dividend (DLS) 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, DLS achieves a 6.63% return, which is significantly lower than VNQ's 7.83% return. Over the past 10 years, DLS has outperformed VNQ with an annualized return of 7.46%, while VNQ has yielded a comparatively lower 5.21% annualized return.

DLS

• 1D: -0.94%
• 1M: 0.80%
• YTD: 6.63%
• 6M: 9.37%
• 1Y: 22.56%
• 3Y*: 17.27%
• 5Y*: 6.55%
• 10Y*: 7.46%

VNQ

• 1D: -0.12%
• 1M: -1.10%
• YTD: 7.83%
• 6M: 6.75%
• 1Y: 9.97%
• 3Y*: 9.15%
• 5Y*: 2.18%
• 10Y*: 5.21%

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

DLS vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DLS WisdomTree International SmallCap Dividend	6.63%	34.11%	3.06%	15.33%	-17.31%	11.71%	-1.28%	22.20%	-18.95%	31.83%
VNQ Vanguard Real Estate ETF	7.83%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between DLS and VNQ is 0.52, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (10Y) Calculated over the trailing 10-year period	0.52
Correlation (All Time) Calculated using the full available price history since Jun 19, 2006	0.57

The correlation between DLS and VNQ has been stable across timeframes, ranging from 0.52 to 0.59 - a consistent structural relationship.

DLS vs. VNQ - Sectors Allocation Comparison

Sectors	DLS	VNQ
Industrials	27.8%	0.0%
Financial Services	13.3%	0.1%
Consumer Cyclical	12.8%	-
Basic Materials	8.9%	1.1%
Technology	8.4%	0.3%
Consumer Defensive	7.9%	-
Real Estate	7.8%	97.3%
Communication Services	4.4%	0.6%
Healthcare	3.7%	-
Energy	3.0%	0.1%
Utilities	2.1%	-

Return for Risk

DLS vs. VNQ — Risk / Return Rank

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

DLS

DLS Risk / Return Rank: 46
DLS Sharpe Ratio Rank: 48
DLS Sortino Ratio Rank: 48
DLS Omega Ratio Rank: 48
DLS Calmar Ratio Rank: 41
DLS Martin Ratio Rank: 45

VNQ

VNQ Risk / Return Rank: 23
VNQ Sharpe Ratio Rank: 22
VNQ Sortino Ratio Rank: 21
VNQ Omega Ratio Rank: 20
VNQ Calmar Ratio Rank: 25
VNQ Martin Ratio Rank: 27

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.

DLS vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree International SmallCap Dividend (DLS) 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.

	DLS	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	1.69	0.76	+0.93
Sortino ratio: Return per unit of downside risk	2.41	1.12	+1.30
Omega ratio: Gain probability vs. loss probability	1.31	1.14	+0.17
Calmar ratio: Return relative to maximum drawdown	2.05	1.20	+0.85
Martin ratio: Return relative to average drawdown	7.55	3.78	+3.77
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DLS vs. VNQ - Sharpe Ratio Comparison

The current DLS Sharpe Ratio is 1.69, which is higher than the VNQ Sharpe Ratio of 0.76. The chart below compares the historical Sharpe Ratios of DLS 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.

Sharpe Ratios by Period

	DLS	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.69	0.76	+0.93
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	0.12	+0.31
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.45	0.25	+0.20
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.26	+0.07

Drawdowns

DLS vs. VNQ - Drawdown Comparison

The maximum DLS drawdown since its inception was -63.13%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for DLS and VNQ.

Drawdown Indicators

	DLS	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-63.13%	-73.07%	+9.94%
Max Drawdown (1Y) Largest decline over 1 year	-11.04%	-8.34%	-2.70%
Max Drawdown (3Y) Largest decline over 3 years	-12.69%	-17.46%	+4.77%
Max Drawdown (5Y) Largest decline over 5 years	-32.22%	-34.48%	+2.26%
Max Drawdown (10Y) Largest decline over 10 years	-44.77%	-42.40%	-2.37%
Current Drawdown Current decline from peak	-3.20%	-3.75%	+0.55%
Average Drawdown Average peak-to-trough decline	-13.65%	-13.63%	-0.02%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.99%	2.64%	+0.35%

Volatility

DLS vs. VNQ - Volatility Comparison

WisdomTree International SmallCap Dividend (DLS) has a higher volatility of 4.58% compared to Vanguard Real Estate ETF (VNQ) at 3.72%. This indicates that DLS'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

	DLS	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.58%	3.72%	+0.86%
Volatility (6M) Calculated over the trailing 6-month period	10.98%	9.26%	+1.72%
Volatility (1Y) Calculated over the trailing 1-year period	13.44%	13.16%	+0.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.57%	18.80%	-3.23%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.67%	20.70%	-4.03%

DLS vs. VNQ - Expense Ratio Comparison

DLS has a 0.58% expense ratio, which is higher than VNQ's 0.13% expense ratio.

Dividends

DLS vs. VNQ - Dividend Comparison

DLS's dividend yield for the trailing twelve months is around 3.50%, less than VNQ's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DLS WisdomTree International SmallCap Dividend	3.50%	3.87%	4.56%	4.29%	4.96%	3.29%	2.50%	3.37%	3.66%	2.79%	3.29%	2.72%
VNQ Vanguard Real Estate ETF	3.69%	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 DLS and VNQ in my portfolio?

DLS and VNQ have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DLS or VNQ?

DLS has higher volatility (4.58%) compared to VNQ (3.72%). In terms of maximum drawdown, DLS dropped -63.13% vs VNQ's -73.07%.

Which ETF is better, DLS or VNQ?

On 10-year performance, DLS leads with 7.46% vs 5.21% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 3.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DLS or VNQ?

Over the 10-year period, DLS has performed better with a 7.46% return vs 5.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DLS or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.58% for DLS.

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

VNQ has the higher dividend yield at 3.69%, compared with 3.50% for DLS.

What is the main difference between DLS and VNQ?

DLS is categorized as Foreign Small & Mid Cap Equities, while VNQ is REIT. DLS tracks WisdomTree International SmallCap Dividend Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: WisdomTree and Vanguard. Their fees differ too: 0.58% for DLS and 0.13% for VNQ.

Which has better risk-adjusted returns?

DLS currently has the higher Sharpe Ratio (1.69 vs 0.76), 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.