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ESGB vs. VNQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

ESGB vs. VNQ

Last updated Jun 5, 2026

ESGB (IQ MacKay ESG Core Plus Bond ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - ESGB is a Intermediate Core-Plus Bond fund actively managed by IndexIQ, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. ESGB is actively managed, while VNQ is passively managed. Over the past 3 years, ESGB returned 5.59%/yr vs 10.05%/yr for VNQ. At a 0.37 correlation, their price movements are largely independent. ESGB charges 0.39%/yr vs 0.13%/yr for VNQ.

Performance

ESGB vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in IQ MacKay ESG Core Plus Bond ETF (ESGB) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, ESGB achieves a 0.74% return, which is significantly lower than VNQ's 9.76% return.

ESGB

1D
0.24%
1M
0.21%
YTD
0.74%
6M
0.94%
1Y
5.08%
3Y*
5.59%
5Y*
—
10Y*
—

VNQ

1D
1.79%
1M
0.36%
YTD
9.76%
6M
8.93%
1Y
11.63%
3Y*
10.05%
5Y*
2.54%
10Y*
5.47%
*Multi-year figures are annualized to reflect compound growth (CAGR)

ESGB vs. VNQ - Yearly Performance Comparison

2026 (YTD)20252024202320222021
ESGB
IQ MacKay ESG Core Plus Bond ETF		0.74%7.76%4.19%7.16%-14.44%0.38%
VNQ
Vanguard Real Estate ETF		9.76%3.24%4.81%11.85%-26.25%15.14%

Correlation

The correlation between ESGB and VNQ is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.39

Correlation (3Y)
Calculated over the trailing 3-year period

0.43

Correlation (All Time)
Calculated using the full available price history since Jun 30, 2021

0.37

ESGB vs. VNQ - Sectors Allocation Comparison

Sectors
ESGB
VNQ

Financial Services

0.2%
0.1%

Healthcare

0.0%

-

Basic Materials

-

1.1%

Communication Services

-

0.6%

Consumer Cyclical

-

-

Consumer Defensive

-

-

Energy

-

0.1%

Industrials

-

0.0%

Real Estate

-

97.3%

Technology

-

0.3%

Utilities

-

-

Financial Services

ESGB
0.2%
VNQ
0.1%

Healthcare

ESGB
0.0%
VNQ

-

Basic Materials

ESGB

-

VNQ
1.1%

Communication Services

ESGB

-

VNQ
0.6%

Consumer Cyclical

ESGB

-

VNQ

-

Consumer Defensive

ESGB

-

VNQ

-

Energy

ESGB

-

VNQ
0.1%

Industrials

ESGB

-

VNQ
0.0%

Real Estate

ESGB

-

VNQ
97.3%

Technology

ESGB

-

VNQ
0.3%

Utilities

ESGB

-

VNQ

-

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

IQ MacKay ESG Core Plus Bond ETF

Vanguard Real Estate ETF

Often compared with ESGB:
ESGB vs. GEQT.TOESGB vs. APCBESGB vs. ZST.TOESGB vs. IQSMESGB vs. AUMIESGB vs. MMCAESGB vs. CFIT
Often compared with VNQ:
VNQ vs. SCHHVNQ vs. VOOVNQ vs. SPYVNQ vs. XLREVNQ vs. VNQIVNQ vs. SCHDVNQ vs. REET

Return for Risk

ESGB vs. VNQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
ESGB
ESGB Risk / Return Rank: 3939
Overall Rank
ESGB Sharpe Ratio Rank: 3939
Sharpe Ratio Rank
ESGB Sortino Ratio Rank: 4040
Sortino Ratio Rank
ESGB Omega Ratio Rank: 3838
Omega Ratio Rank
ESGB Calmar Ratio Rank: 4040
Calmar Ratio Rank
ESGB Martin Ratio Rank: 3838
Martin Ratio Rank
VNQ
VNQ Risk / Return Rank: 2727
Overall Rank
VNQ Sharpe Ratio Rank: 2626
Sharpe Ratio Rank
VNQ Sortino Ratio Rank: 2424
Sortino Ratio Rank
VNQ Omega Ratio Rank: 2424
Omega Ratio Rank
VNQ Calmar Ratio Rank: 2929
Calmar Ratio Rank
VNQ Martin Ratio Rank: 3131
Martin Ratio Rank
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.

ESGB vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ MacKay ESG Core Plus Bond ETF (ESGB) 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.

ESGBVNQDifference
Sharpe ratioReturn per unit of total volatility
1.37
0.88

+0.49

Sortino ratioReturn per unit of downside risk
2.00
1.28

+0.73

Omega ratioGain probability vs. loss probability

1.24

1.16

+0.09

Calmar ratioReturn relative to maximum drawdown

1.96

1.40

+0.56

Martin ratioReturn relative to average drawdown

5.97

4.41

+1.56

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ESGB vs. VNQ - Sharpe Ratio Comparison

The current ESGB Sharpe Ratio is 1.37, which is higher than the VNQ Sharpe Ratio of 0.88. The chart below compares the historical Sharpe Ratios of ESGB 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.

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Sharpe Ratios by Period

ESGBVNQDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.37

0.88

+0.49

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

—

0.14

—

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

—

0.27

—

Sharpe Ratio (All Time)

Calculated using the full available price history

0.16

0.27

-0.11

Drawdowns

ESGB vs. VNQ - Drawdown Comparison

The maximum ESGB drawdown since its inception was -18.96%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for ESGB and VNQ.

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Drawdown Indicators

ESGBVNQDifference

Max Drawdown

Largest peak-to-trough decline

-18.96%

-73.07%

+54.11%

Max Drawdown (1Y)

Largest decline over 1 year

-2.60%

-8.34%

+5.74%

Max Drawdown (3Y)

Largest decline over 3 years

-5.90%

-17.46%

+11.56%

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

-1.20%

-2.03%

+0.83%

Average Drawdown

Average peak-to-trough decline

-7.07%

-13.63%

+6.56%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.85%

2.64%

-1.79%

Volatility

ESGB vs. VNQ - Volatility Comparison

The current volatility for IQ MacKay ESG Core Plus Bond ETF (ESGB) is 1.26%, while Vanguard Real Estate ETF (VNQ) has a volatility of 4.14%. This indicates that ESGB 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.

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Volatility by Period

ESGBVNQDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.26%

4.14%

-2.88%

Volatility (6M)

Calculated over the trailing 6-month period

2.75%

9.41%

-6.66%

Volatility (1Y)

Calculated over the trailing 1-year period

3.74%

13.27%

-9.53%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

5.04%

18.82%

-13.78%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

5.04%

20.70%

-15.66%

ESGB vs. VNQ - Expense Ratio Comparison

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

Dividends

ESGB vs. VNQ - Dividend Comparison

ESGB's dividend yield for the trailing twelve months is around 5.49%, more than VNQ's 3.63% yield.

PositionTTM20252024202320222021202020192018201720162015
ESGB
IQ MacKay ESG Core Plus Bond ETF		5.49%5.46%5.40%4.82%3.17%0.95%0.00%0.00%0.00%0.00%0.00%0.00%
VNQ
Vanguard Real Estate ETF		3.63%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

ESGB and VNQ have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VNQ has higher volatility (4.14%) compared to ESGB (1.26%). In terms of maximum drawdown, ESGB dropped -18.96% vs VNQ's -73.07%.

On 3-year performance, VNQ leads with 10.05% vs 5.59% for ESGB. On fees, VNQ is cheaper at 0.13% per year. On volatility, ESGB has been the lower-risk option at 1.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 3-year period, VNQ has performed better with a 10.05% return vs 5.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

ESGB has the higher dividend yield at 5.49%, compared with 3.63% for VNQ.

ESGB is categorized as Intermediate Core-Plus Bond, while VNQ is REIT. They also come from different issuers: IndexIQ and Vanguard. Their fees differ too: 0.39% for ESGB and 0.13% for VNQ.

ESGB currently has the higher Sharpe Ratio (1.37 vs 0.88), 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.

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