IBDQ vs. VNQ

Last updated Jun 3, 2026

IBDQ (iShares iBonds Dec 2025 Term Corporate ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - IBDQ is a Corporate Bonds fund tracking the Bloomberg December 2025 Maturity Corporate, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. At a 0.19 correlation, their price movements are largely independent. IBDQ charges 0.10%/yr vs 0.13%/yr for VNQ.

Performance

IBDQ vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds Dec 2025 Term Corporate ETF (IBDQ) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

IBDQ

• 1D: —
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

VNQ

• 1D: 0.46%
• 1M: -1.60%
• YTD: 7.96%
• 6M: 7.15%
• 1Y: 9.88%
• 3Y*: 9.19%
• 5Y*: 2.21%
• 10Y*: 5.22%

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

IBDQ vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IBDQ iShares iBonds Dec 2025 Term Corporate ETF	0.00%	4.13%	5.12%	5.23%	-5.91%	-1.49%	8.27%	13.59%	-2.39%	6.28%
VNQ Vanguard Real Estate ETF	7.96%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between IBDQ and VNQ is 0.10, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.10
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (5Y) Calculated over the trailing 5-year period	0.22
Correlation (10Y) Calculated over the trailing 10-year period	0.22
Correlation (All Time) Calculated using the full available price history since Mar 13, 2015	0.19

The correlation between IBDQ and VNQ shifts across timeframes, from 0.10 (1 year) to 0.22 (10 years), reflecting how their relationship changes across market environments.

Return for Risk

IBDQ vs. VNQ — Risk / Return Rank

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

VNQ

VNQ Risk / Return Rank: 23
VNQ Sharpe Ratio Rank: 22
VNQ Sortino Ratio Rank: 21
VNQ Omega Ratio Rank: 21
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.

IBDQ vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds Dec 2025 Term Corporate ETF (IBDQ) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	IBDQ	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	0.75	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.12	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.25	—
Sharpe Ratio (All Time) Calculated using the full available price history	—	0.26	—

Drawdowns

Drawdown Indicators

	IBDQ	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	—	-73.07%	—
Max Drawdown (1Y) Largest decline over 1 year	—	-8.34%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-17.46%	—
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	—	-3.64%	—
Average Drawdown Average peak-to-trough decline	—	-13.63%	—
Ulcer Index Depth and duration of drawdowns from previous peaks	—	2.64%	—

Volatility

Volatility by Period

	IBDQ	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	3.77%	—
Volatility (6M) Calculated over the trailing 6-month period	—	9.33%	—
Volatility (1Y) Calculated over the trailing 1-year period	—	13.16%	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	—	18.80%	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	—	20.70%	—

IBDQ vs. VNQ - Expense Ratio Comparison

IBDQ has a 0.10% expense ratio, which is lower than VNQ's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IBDQ vs. VNQ - Dividend Comparison

IBDQ's dividend yield for the trailing twelve months is around 2.08%, less than VNQ's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IBDQ iShares iBonds Dec 2025 Term Corporate ETF	2.08%	3.77%	3.81%	3.27%	2.23%	2.07%	2.51%	3.21%	3.52%	3.28%	3.39%	2.64%
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 IBDQ and VNQ in my portfolio?

IBDQ and VNQ have a correlation of 0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, IBDQ or VNQ?

On fees, IBDQ is cheaper at 0.10% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, IBDQ or VNQ?

IBDQ is cheaper with a 0.10% expense ratio, compared with 0.13% for VNQ.

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

VNQ has the higher dividend yield at 3.69%, compared with 2.08% for IBDQ.

What is the main difference between IBDQ and VNQ?

IBDQ is categorized as Corporate Bonds, while VNQ is REIT. IBDQ tracks Bloomberg December 2025 Maturity Corporate, 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: 0.10% for IBDQ and 0.13% for VNQ.