DVY vs. VNQ

Last updated Jun 13, 2026

DVY (iShares Select Dividend ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - DVY is a Large Cap Value Equities fund tracking the Dow Jones U.S. Select 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, DVY returned 10.49%/yr vs 5.65%/yr for VNQ. A 0.70 correlation means they provide meaningful diversification when combined. DVY charges 0.39%/yr vs 0.13%/yr for VNQ.

Performance

DVY vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Select Dividend ETF (DVY) 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, DVY achieves a 13.40% return, which is significantly higher than VNQ's 12.51% return. Over the past 10 years, DVY has outperformed VNQ with an annualized return of 10.49%, while VNQ has yielded a comparatively lower 5.65% annualized return.

DVY

• 1D: 1.18%
• 1M: 4.47%
• YTD: 13.40%
• 6M: 12.29%
• 1Y: 24.31%
• 3Y*: 15.86%
• 5Y*: 9.31%
• 10Y*: 10.49%

VNQ

• 1D: 0.92%
• 1M: 2.73%
• YTD: 12.51%
• 6M: 12.32%
• 1Y: 12.92%
• 3Y*: 10.14%
• 5Y*: 2.55%
• 10Y*: 5.65%

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

DVY vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DVY iShares Select Dividend ETF	13.40%	11.60%	16.24%	1.12%	1.80%	31.70%	-4.91%	22.62%	-6.36%	14.82%
VNQ Vanguard Real Estate ETF	12.51%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between DVY and VNQ is 0.69, 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	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.74
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004	0.70

The correlation between DVY and VNQ has been stable across timeframes, ranging from 0.67 to 0.74 - a consistent structural relationship.

DVY vs. VNQ - Sectors Allocation Comparison

Sectors	DVY	VNQ
Financial Services	24.9%	0.1%
Utilities	24.2%	-
Consumer Defensive	13.5%	-
Consumer Cyclical	9.4%	-
Energy	9.1%	0.1%
Communication Services	6.0%	0.6%
Healthcare	5.0%	-
Technology	3.4%	0.3%
Basic Materials	2.3%	1.1%
Industrials	2.1%	0.0%
Real Estate	-	97.3%

Return for Risk

DVY vs. VNQ — Risk / Return Rank

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

DVY

DVY Risk / Return Rank: 78
DVY Sharpe Ratio Rank: 79
DVY Sortino Ratio Rank: 82
DVY Omega Ratio Rank: 74
DVY Calmar Ratio Rank: 78
DVY Martin Ratio Rank: 76

VNQ

VNQ Risk / Return Rank: 32
VNQ Sharpe Ratio Rank: 30
VNQ Sortino Ratio Rank: 28
VNQ Omega Ratio Rank: 28
VNQ Calmar Ratio Rank: 35
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.

DVY vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Select Dividend ETF (DVY) 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.

	DVY	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	2.19	0.96	+1.23
Sortino ratio: Return per unit of downside risk	3.19	1.39	+1.80
Omega ratio: Gain probability vs. loss probability	1.37	1.17	+0.20
Calmar ratio: Return relative to maximum drawdown	3.54	1.56	+1.99
Martin ratio: Return relative to average drawdown	12.51	4.90	+7.61

DVY vs. VNQ - Sharpe Ratio Comparison

The current DVY Sharpe Ratio is 2.19, which is higher than the VNQ Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of DVY 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

DVY vs. VNQ - Drawdown Comparison

The maximum DVY drawdown since its inception was -62.59%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for DVY and VNQ.

Drawdown Indicators

	DVY	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-62.59%	-73.07%	+10.48%
Max Drawdown (1Y) Largest decline over 1 year	-6.89%	-8.34%	+1.45%
Max Drawdown (3Y) Largest decline over 3 years	-16.00%	-17.46%	+1.46%
Max Drawdown (5Y) Largest decline over 5 years	-17.54%	-34.48%	+16.94%
Max Drawdown (10Y) Largest decline over 10 years	-41.59%	-42.40%	+0.81%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-8.78%	-13.61%	+4.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.95%	2.65%	-0.70%

Volatility

DVY vs. VNQ - Volatility Comparison

The current volatility for iShares Select Dividend ETF (DVY) is 2.94%, while Vanguard Real Estate ETF (VNQ) has a volatility of 4.72%. This indicates that DVY experiences smaller price fluctuations and is considered to be less risky than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DVY	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.94%	4.72%	-1.78%
Volatility (6M) Calculated over the trailing 6-month period	7.54%	9.77%	-2.23%
Volatility (1Y) Calculated over the trailing 1-year period	11.16%	13.54%	-2.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.22%	18.84%	-3.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.01%	20.72%	-2.71%

DVY vs. VNQ - Expense Ratio Comparison

DVY has a 0.39% expense ratio, which is higher than VNQ's 0.13% expense ratio.

Dividends

DVY vs. VNQ - Dividend Comparison

DVY's dividend yield for the trailing twelve months is around 3.30%, less than VNQ's 3.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DVY iShares Select Dividend ETF	3.30%	3.65%	3.65%	3.82%	3.43%	3.12%	3.66%	3.41%	3.58%	3.00%	3.04%	3.45%
VNQ Vanguard Real Estate ETF	3.54%	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 DVY and VNQ in my portfolio?

DVY and VNQ have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DVY or VNQ?

VNQ has higher volatility (4.72%) compared to DVY (2.94%). In terms of maximum drawdown, DVY dropped -62.59% vs VNQ's -73.07%.

Which ETF is better, DVY or VNQ?

On 10-year performance, DVY leads with 10.49% vs 5.65% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, DVY has been the lower-risk option at 2.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DVY or VNQ?

Over the 10-year period, DVY has performed better with a 10.49% return vs 5.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DVY or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.39% for DVY.

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

VNQ has the higher dividend yield at 3.54%, compared with 3.30% for DVY.

What is the main difference between DVY and VNQ?

DVY is categorized as Large Cap Value Equities, while VNQ is REIT. DVY tracks Dow Jones U.S. Select Dividend 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: 0.39% for DVY and 0.13% for VNQ.

Which has better risk-adjusted returns?

DVY currently has the higher Sharpe Ratio (2.19 vs 0.96), 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.