IGE vs. VNQ

Last updated Jun 4, 2026

IGE (iShares North American Natural Resources ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - IGE is a Energy Equities fund tracking the S&P North American Natural Resources Sector 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, IGE returned 9.79%/yr vs 5.21%/yr for VNQ. At a 0.42 correlation, their price movements are largely independent. IGE charges 0.39%/yr vs 0.13%/yr for VNQ.

Performance

IGE vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares North American Natural Resources ETF (IGE) 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, IGE achieves a 22.98% return, which is significantly higher than VNQ's 7.83% return. Over the past 10 years, IGE has outperformed VNQ with an annualized return of 9.79%, while VNQ has yielded a comparatively lower 5.21% annualized return.

IGE

• 1D: -0.15%
• 1M: -0.36%
• YTD: 22.98%
• 6M: 23.36%
• 1Y: 43.74%
• 3Y*: 20.25%
• 5Y*: 17.22%
• 10Y*: 9.79%

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)

IGE vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IGE iShares North American Natural Resources ETF	22.98%	20.41%	7.55%	3.12%	33.24%	39.42%	-19.58%	17.16%	-21.59%	0.82%
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 IGE and VNQ is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.24
Correlation (3Y) Calculated over the trailing 3-year period	0.37
Correlation (5Y) Calculated over the trailing 5-year period	0.38
Correlation (10Y) Calculated over the trailing 10-year period	0.37
Correlation (All Time) Calculated using the full available price history since Sep 30, 2004	0.42

The correlation between IGE and VNQ shifts across timeframes, from 0.24 (1 year) to 0.42 (all time), reflecting how their relationship changes across market environments.

IGE vs. VNQ - Sectors Allocation Comparison

Sectors	IGE	VNQ
Energy	71.9%	0.1%
Basic Materials	24.5%	1.1%
Consumer Cyclical	3.3%	-
Healthcare	0.2%	-
Industrials	0.1%	0.0%
Communication Services	-	0.6%
Consumer Defensive	-	-
Financial Services	-	0.1%
Real Estate	-	97.3%
Technology	-	0.3%
Utilities	-	-

Return for Risk

IGE vs. VNQ — Risk / Return Rank

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

IGE

IGE Risk / Return Rank: 84
IGE Sharpe Ratio Rank: 83
IGE Sortino Ratio Rank: 80
IGE Omega Ratio Rank: 75
IGE Calmar Ratio Rank: 95
IGE 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.

IGE vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares North American Natural Resources ETF (IGE) 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.

	IGE	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	2.75	0.76	+1.99
Sortino ratio: Return per unit of downside risk	3.64	1.12	+2.53
Omega ratio: Gain probability vs. loss probability	1.45	1.14	+0.32
Calmar ratio: Return relative to maximum drawdown	7.93	1.20	+6.73
Martin ratio: Return relative to average drawdown	19.51	3.78	+15.73
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IGE vs. VNQ - Sharpe Ratio Comparison

The current IGE Sharpe Ratio is 2.75, which is higher than the VNQ Sharpe Ratio of 0.76. The chart below compares the historical Sharpe Ratios of IGE 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

	IGE	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.75	0.76	+1.99
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.77	0.12	+0.65
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.39	0.25	+0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.30	0.26	+0.04

Drawdowns

IGE vs. VNQ - Drawdown Comparison

The maximum IGE drawdown since its inception was -67.55%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for IGE and VNQ.

Drawdown Indicators

	IGE	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-67.55%	-73.07%	+5.52%
Max Drawdown (1Y) Largest decline over 1 year	-5.54%	-8.34%	+2.80%
Max Drawdown (3Y) Largest decline over 3 years	-19.49%	-17.46%	-2.03%
Max Drawdown (5Y) Largest decline over 5 years	-25.72%	-34.48%	+8.76%
Max Drawdown (10Y) Largest decline over 10 years	-60.57%	-42.40%	-18.17%
Current Drawdown Current decline from peak	-2.86%	-3.75%	+0.89%
Average Drawdown Average peak-to-trough decline	-18.90%	-13.63%	-5.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.25%	2.64%	-0.39%

Volatility

IGE vs. VNQ - Volatility Comparison

iShares North American Natural Resources ETF (IGE) has a higher volatility of 4.40% compared to Vanguard Real Estate ETF (VNQ) at 3.72%. This indicates that IGE'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

	IGE	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.40%	3.72%	+0.68%
Volatility (6M) Calculated over the trailing 6-month period	12.67%	9.26%	+3.41%
Volatility (1Y) Calculated over the trailing 1-year period	15.98%	13.16%	+2.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.45%	18.80%	+3.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.94%	20.70%	+4.24%

IGE vs. VNQ - Expense Ratio Comparison

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

Dividends

IGE vs. VNQ - Dividend Comparison

IGE's dividend yield for the trailing twelve months is around 1.89%, less than VNQ's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IGE iShares North American Natural Resources ETF	1.89%	2.32%	2.54%	2.85%	2.96%	2.92%	3.34%	5.55%	2.68%	2.11%	1.66%	3.08%
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 IGE and VNQ in my portfolio?

IGE and VNQ have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IGE or VNQ?

IGE has higher volatility (4.40%) compared to VNQ (3.72%). In terms of maximum drawdown, IGE dropped -67.55% vs VNQ's -73.07%.

Which ETF is better, IGE or VNQ?

On 10-year performance, IGE leads with 9.79% vs 5.21% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 3.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IGE or VNQ?

Over the 10-year period, IGE has performed better with a 9.79% return vs 5.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IGE or VNQ?

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

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

VNQ has the higher dividend yield at 3.69%, compared with 1.89% for IGE.

What is the main difference between IGE and VNQ?

IGE is categorized as Energy Equities, while VNQ is REIT. IGE tracks S&P North American Natural Resources Sector 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 IGE and 0.13% for VNQ.

Which has better risk-adjusted returns?

IGE currently has the higher Sharpe Ratio (2.75 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.