FRT vs. VNQ

Last updated Jun 4, 2026

FRT (Federal Realty Investment Trust) 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, FRT returned 1.17%/yr vs 5.21%/yr for VNQ. Their correlation of 0.83 suggests significant overlap in exposure.

Performance

FRT vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federal Realty Investment Trust (FRT) 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, FRT achieves a 21.10% return, which is significantly higher than VNQ's 7.83% return. Over the past 10 years, FRT has underperformed VNQ with an annualized return of 1.17%, while VNQ has yielded a comparatively higher 5.21% annualized return.

FRT

• 1D: 0.08%
• 1M: 4.32%
• YTD: 21.10%
• 6M: 24.72%
• 1Y: 31.28%
• 3Y*: 14.28%
• 5Y*: 4.59%
• 10Y*: 1.17%

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)

FRT vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FRT Federal Realty Investment Trust	21.10%	-5.91%	12.07%	6.55%	-22.66%	65.97%	-30.66%	12.51%	-8.10%	-3.59%
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 FRT and VNQ is 0.73, 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	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (10Y) Calculated over the trailing 10-year period	0.78
Correlation (All Time) Calculated using the full available price history since Sep 30, 2004	0.83

The correlation between FRT and VNQ has been stable across timeframes, ranging from 0.73 to 0.83 - a consistent structural relationship.

Return for Risk

FRT vs. VNQ — Risk / Return Rank

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

FRT

FRT Risk / Return Rank: 86
FRT Sharpe Ratio Rank: 85
FRT Sortino Ratio Rank: 84
FRT Omega Ratio Rank: 81
FRT Calmar Ratio Rank: 89
FRT Martin Ratio Rank: 88

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.

FRT vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federal Realty Investment Trust (FRT) 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.

	FRT	VNQ	Difference
Sharpe ratio Return per unit of total volatility	1.84	0.76	+1.08
Sortino ratio Return per unit of downside risk	2.68	1.12	+1.56
Omega ratio Gain probability vs. loss probability	1.32	1.14	+0.18
Calmar ratio Return relative to maximum drawdown	4.51	1.20	+3.31
Martin ratio Return relative to average drawdown	11.00	3.78	+7.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FRT vs. VNQ - Sharpe Ratio Comparison

The current FRT Sharpe Ratio is 1.84, which is higher than the VNQ Sharpe Ratio of 0.76. The chart below compares the historical Sharpe Ratios of FRT 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

	FRT	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.84	0.76	+1.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	0.12	+0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.04	0.25	-0.21
Sharpe Ratio (All Time) Calculated using the full available price history	0.41	0.26	+0.14

Drawdowns

FRT vs. VNQ - Drawdown Comparison

The maximum FRT drawdown since its inception was -57.42%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for FRT and VNQ.

Drawdown Indicators

	FRT	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-57.42%	-73.07%	+15.65%
Max Drawdown (1Y) Largest decline over 1 year	-6.96%	-8.34%	+1.38%
Max Drawdown (3Y) Largest decline over 3 years	-27.38%	-17.46%	-9.92%
Max Drawdown (5Y) Largest decline over 5 years	-34.99%	-34.48%	-0.51%
Max Drawdown (10Y) Largest decline over 10 years	-56.47%	-42.40%	-14.07%
Current Drawdown Current decline from peak	-1.35%	-3.75%	+2.40%
Average Drawdown Average peak-to-trough decline	-11.78%	-13.63%	+1.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.85%	2.64%	+0.21%

Volatility

FRT vs. VNQ - Volatility Comparison

Federal Realty Investment Trust (FRT) has a higher volatility of 4.11% compared to Vanguard Real Estate ETF (VNQ) at 3.72%. This indicates that FRT'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

	FRT	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.11%	3.72%	+0.39%
Volatility (6M) Calculated over the trailing 6-month period	11.77%	9.26%	+2.51%
Volatility (1Y) Calculated over the trailing 1-year period	17.10%	13.16%	+3.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.35%	18.80%	+4.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.43%	20.70%	+8.73%

Dividends

FRT vs. VNQ - Dividend Comparison

FRT's dividend yield for the trailing twelve months is around 3.76%, more than VNQ's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FRT Federal Realty Investment Trust	3.76%	4.39%	2.93%	4.21%	4.26%	3.12%	4.96%	3.22%	3.42%	2.98%	2.70%	2.48%
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 FRT and VNQ in my portfolio?

FRT and VNQ have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FRT or VNQ?

FRT has higher volatility (4.11%) compared to VNQ (3.72%). In terms of maximum drawdown, FRT dropped -57.42% vs VNQ's -73.07%.

Which has better risk-adjusted returns?

FRT currently has the higher Sharpe Ratio (1.84 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.