ESRT vs. VNQ

Last updated Jun 4, 2026

ESRT (Empire State Realty Trust, Inc.) is a stock, while VNQ (Vanguard Real Estate ETF) is REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Over the past 10 years, ESRT returned -10.15%/yr vs 5.21%/yr for VNQ. A 0.64 correlation means they provide meaningful diversification when combined.

Performance

ESRT vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Empire State Realty Trust, Inc. (ESRT) 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, ESRT achieves a -16.93% return, which is significantly lower than VNQ's 7.83% return. Over the past 10 years, ESRT has underperformed VNQ with an annualized return of -10.15%, while VNQ has yielded a comparatively higher 5.21% annualized return.

ESRT

• 1D: -5.61%
• 1M: -0.55%
• YTD: -16.93%
• 6M: -22.57%
• 1Y: -30.42%
• 3Y*: -3.25%
• 5Y*: -13.73%
• 10Y*: -10.15%

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)

ESRT vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ESRT Empire State Realty Trust, Inc.	-16.93%	-35.68%	7.97%	46.32%	-22.82%	-3.53%	-31.48%	0.90%	-28.91%	3.77%
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 ESRT and VNQ is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.49
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Oct 3, 2013	0.64

The correlation between ESRT and VNQ shifts across timeframes, from 0.49 (1 year) to 0.64 (10 years), reflecting how their relationship changes across market environments.

Return for Risk

ESRT vs. VNQ — Risk / Return Rank

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

ESRT

ESRT Risk / Return Rank: 10
ESRT Sharpe Ratio Rank: 6
ESRT Sortino Ratio Rank: 8
ESRT Omega Ratio Rank: 10
ESRT Calmar Ratio Rank: 14
ESRT Martin Ratio Rank: 12

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.

ESRT vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Empire State Realty Trust, Inc. (ESRT) 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.

	ESRT	VNQ	Difference
Sharpe ratio Return per unit of total volatility	-0.94	0.76	-1.70
Sortino ratio Return per unit of downside risk	-1.23	1.12	-2.34
Omega ratio Gain probability vs. loss probability	0.86	1.14	-0.28
Calmar ratio Return relative to maximum drawdown	-0.73	1.20	-1.93
Martin ratio Return relative to average drawdown	-1.27	3.78	-5.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ESRT vs. VNQ - Sharpe Ratio Comparison

The current ESRT Sharpe Ratio is -0.94, which is lower than the VNQ Sharpe Ratio of 0.76. The chart below compares the historical Sharpe Ratios of ESRT 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

	ESRT	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.94	0.76	-1.70
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.40	0.12	-0.52
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.28	0.25	-0.54
Sharpe Ratio (All Time) Calculated using the full available price history	-0.15	0.26	-0.41

Drawdowns

ESRT vs. VNQ - Drawdown Comparison

The maximum ESRT drawdown since its inception was -72.91%, roughly equal to the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for ESRT and VNQ.

Drawdown Indicators

	ESRT	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-72.91%	-73.07%	+0.16%
Max Drawdown (1Y) Largest decline over 1 year	-41.89%	-8.34%	-33.55%
Max Drawdown (3Y) Largest decline over 3 years	-55.39%	-17.46%	-37.93%
Max Drawdown (5Y) Largest decline over 5 years	-57.84%	-34.48%	-23.36%
Max Drawdown (10Y) Largest decline over 10 years	-72.91%	-42.40%	-30.51%
Current Drawdown Current decline from peak	-70.50%	-3.75%	-66.75%
Average Drawdown Average peak-to-trough decline	-33.56%	-13.63%	-19.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	23.97%	2.64%	+21.33%

Volatility

ESRT vs. VNQ - Volatility Comparison

Empire State Realty Trust, Inc. (ESRT) has a higher volatility of 10.71% compared to Vanguard Real Estate ETF (VNQ) at 3.72%. This indicates that ESRT'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

	ESRT	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.71%	3.72%	+6.99%
Volatility (6M) Calculated over the trailing 6-month period	22.00%	9.26%	+12.74%
Volatility (1Y) Calculated over the trailing 1-year period	32.71%	13.16%	+19.55%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	34.60%	18.80%	+15.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.89%	20.70%	+15.19%

Dividends

ESRT vs. VNQ - Dividend Comparison

ESRT's dividend yield for the trailing twelve months is around 2.60%, less than VNQ's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ESRT Empire State Realty Trust, Inc.	2.60%	2.15%	1.36%	1.44%	2.08%	1.18%	2.25%	3.01%	2.95%	2.05%	1.98%	1.88%
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 ESRT and VNQ in my portfolio?

ESRT and VNQ have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ESRT or VNQ?

ESRT has higher volatility (10.71%) compared to VNQ (3.72%). In terms of maximum drawdown, ESRT dropped -72.91% vs VNQ's -73.07%.

Which has better risk-adjusted returns?

VNQ currently has the higher Sharpe Ratio (0.76 vs -0.94), 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.