IWFM.L vs. VNQ

Last updated Jun 11, 2026

IWFM.L (iShares Edge MSCI World Momentum Factor UCITS ETF (Acc)) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - IWFM.L is a Momentum fund tracking the MSCI World Momentum 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, IWFM.L returned 15.80%/yr vs 6.21%/yr for VNQ. At a 0.29 correlation, their price movements are largely independent. IWFM.L charges 0.25%/yr vs 0.13%/yr for VNQ.

Performance

IWFM.L vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in iShares Edge MSCI World Momentum Factor UCITS ETF (Acc) (IWFM.L) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

IWFM.L is traded in GBp, while VNQ is traded in USD. To make them comparable, the VNQ values have been converted to GBp using the latest available exchange rates.

Returns By Period

In the year-to-date period, IWFM.L achieves a 16.58% return, which is significantly higher than VNQ's 12.26% return. Over the past 10 years, IWFM.L has outperformed VNQ with an annualized return of 15.80%, while VNQ has yielded a comparatively lower 6.21% annualized return.

IWFM.L

• 1D: -0.56%
• 1M: 0.32%
• YTD: 16.58%
• 6M: 15.41%
• 1Y: 30.48%
• 3Y*: 24.82%
• 5Y*: 13.69%
• 10Y*: 15.80%

VNQ

• 1D: -0.14%
• 1M: 2.66%
• YTD: 12.26%
• 6M: 11.65%
• 1Y: 12.84%
• 3Y*: 7.79%
• 5Y*: 3.46%
• 10Y*: 6.21%

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

IWFM.L vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IWFM.L iShares Edge MSCI World Momentum Factor UCITS ETF (Acc)	16.58%	12.72%	32.62%	5.85%	-8.21%	15.58%	24.16%	23.25%	1.62%	20.40%
VNQ Vanguard Real Estate ETF	12.26%	-4.11%	6.64%	6.26%	-17.48%	41.87%	-7.41%	24.01%	-0.45%	-4.17%

Correlation

The correlation between IWFM.L and VNQ is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.03
Correlation (3Y) Calculated over the trailing 3-year period	0.11
Correlation (5Y) Calculated over the trailing 5-year period	0.16
Correlation (10Y) Calculated over the trailing 10-year period	0.27
Correlation (All Time) Calculated using the full available price history since Oct 6, 2014	0.29

Over the past year, the correlation between IWFM.L and VNQ has dropped to 0.03 - well below their long-term average of 0.29, suggesting their price drivers have been diverging.

IWFM.L vs. VNQ - Sectors Allocation Comparison

Sectors	IWFM.L	VNQ
Technology	26.0%	0.3%
Industrials	18.7%	0.0%
Financial Services	13.1%	0.1%
Healthcare	10.7%	-
Energy	10.6%	0.1%
Communication Services	6.8%	0.6%
Basic Materials	6.0%	1.1%
Utilities	3.7%	-
Consumer Cyclical	1.6%	-
Consumer Defensive	1.5%	-
Real Estate	1.4%	97.3%

Return for Risk

IWFM.L vs. VNQ — Risk / Return Rank

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

IWFM.L

IWFM.L Risk / Return Rank: 72
IWFM.L Sharpe Ratio Rank: 66
IWFM.L Sortino Ratio Rank: 70
IWFM.L Omega Ratio Rank: 66
IWFM.L Calmar Ratio Rank: 77
IWFM.L Martin Ratio Rank: 79

VNQ

VNQ Risk / Return Rank: 30
VNQ Sharpe Ratio Rank: 27
VNQ Sortino Ratio Rank: 27
VNQ Omega Ratio Rank: 26
VNQ Calmar Ratio Rank: 33
VNQ Martin Ratio Rank: 34

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.

IWFM.L vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Edge MSCI World Momentum Factor UCITS ETF (Acc) (IWFM.L) 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.

	IWFM.L	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	1.84	0.98	+0.86
Sortino ratio: Return per unit of downside risk	2.70	1.44	+1.26
Omega ratio: Gain probability vs. loss probability	1.34	1.17	+0.16
Calmar ratio: Return relative to maximum drawdown	3.39	1.73	+1.66
Martin ratio: Return relative to average drawdown	12.95	4.89	+8.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IWFM.L vs. VNQ - Sharpe Ratio Comparison

The current IWFM.L Sharpe Ratio is 1.84, which is higher than the VNQ Sharpe Ratio of 0.98. The chart below compares the historical Sharpe Ratios of IWFM.L 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

	IWFM.L	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.84	0.98	+0.86
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.63	0.20	+0.44
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.80	0.30	+0.50
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	0.28	+0.21

Drawdowns

IWFM.L vs. VNQ - Drawdown Comparison

The maximum IWFM.L drawdown since its inception was -41.86%, smaller than the maximum VNQ drawdown of -57.05%. Use the drawdown chart below to compare losses from any high point for IWFM.L and VNQ.

Drawdown Indicators

	IWFM.L	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-41.86%	-57.05%	+15.19%
Max Drawdown (1Y) Largest decline over 1 year	-8.95%	-7.44%	-1.51%
Max Drawdown (3Y) Largest decline over 3 years	-21.15%	-18.24%	-2.91%
Max Drawdown (5Y) Largest decline over 5 years	-21.15%	-28.76%	+7.61%
Max Drawdown (10Y) Largest decline over 10 years	-22.58%	-35.51%	+12.93%
Current Drawdown Current decline from peak	-5.36%	-1.86%	-3.50%
Average Drawdown Average peak-to-trough decline	-9.42%	-10.79%	+1.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.35%	2.64%	-0.29%

Volatility

IWFM.L vs. VNQ - Volatility Comparison

iShares Edge MSCI World Momentum Factor UCITS ETF (Acc) (IWFM.L) has a higher volatility of 6.37% compared to Vanguard Real Estate ETF (VNQ) at 4.37%. This indicates that IWFM.L'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

	IWFM.L	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.37%	4.37%	+2.00%
Volatility (6M) Calculated over the trailing 6-month period	14.15%	9.87%	+4.28%
Volatility (1Y) Calculated over the trailing 1-year period	16.54%	13.20%	+3.34%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.59%	17.63%	+3.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.60%	20.63%	-1.03%

IWFM.L vs. VNQ - Expense Ratio Comparison

IWFM.L has a 0.25% expense ratio, which is higher than VNQ's 0.13% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

IWFM.L vs. VNQ - Dividend Comparison

IWFM.L has not paid dividends to shareholders, while VNQ's dividend yield for the trailing twelve months is around 3.57%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IWFM.L iShares Edge MSCI World Momentum Factor UCITS ETF (Acc)	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VNQ Vanguard Real Estate ETF	3.57%	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 IWFM.L and VNQ in my portfolio?

IWFM.L and VNQ have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, IWFM.L or VNQ?

On fees, VNQ is cheaper at 0.13% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, IWFM.L or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.25% for IWFM.L.

What is the main difference between IWFM.L and VNQ?

IWFM.L is categorized as Momentum, while VNQ is REIT. IWFM.L tracks MSCI World Momentum 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: 0.25% for IWFM.L and 0.13% for VNQ.