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IWN vs. VNQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IWN vs. VNQ

Last updated Jun 13, 2026

IWN (iShares Russell 2000 Value ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - IWN is a Small Cap Value Equities fund tracking the Russell 2000 Value 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, IWN returned 10.58%/yr vs 5.65%/yr for VNQ. A 0.69 correlation means they provide meaningful diversification when combined. IWN charges 0.24%/yr vs 0.13%/yr for VNQ.

Performance

IWN vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 2000 Value ETF (IWN) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, IWN achieves a 20.82% return, which is significantly higher than VNQ's 12.51% return. Over the past 10 years, IWN has outperformed VNQ with an annualized return of 10.58%, while VNQ has yielded a comparatively lower 5.65% annualized return.

IWN

1D
1.17%
1M
4.34%
YTD
20.82%
6M
17.48%
1Y
42.26%
3Y*
17.41%
5Y*
6.89%
10Y*
10.58%

VNQ

1D
0.92%
1M
2.73%
YTD
12.51%
6M
12.32%
1Y
12.92%
3Y*
10.14%
5Y*
2.55%
10Y*
5.65%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IWN vs. VNQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IWN
iShares Russell 2000 Value ETF		20.82%12.40%7.63%14.56%-14.77%27.96%4.66%22.01%-13.01%7.69%
VNQ
Vanguard Real Estate ETF		12.51%3.24%4.81%11.85%-26.25%40.54%-4.61%28.91%-6.03%4.90%

Correlation

The correlation between IWN and VNQ is 0.58, 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

0.58

Correlation (3Y)
Calculated over the trailing 3-year period

0.66

Correlation (5Y)
Calculated over the trailing 5-year period

0.69

Correlation (10Y)
Calculated over the trailing 10-year period

0.61

Correlation (All Time)
Calculated using the full available price history since Sep 29, 2004

0.69

The correlation between IWN and VNQ shifts across timeframes, from 0.58 (1 year) to 0.69 (5 years), reflecting how their relationship changes across market environments.

IWN vs. VNQ - Sectors Allocation Comparison

Sectors
IWN
VNQ

Financial Services

24.2%
0.1%

Technology

12.4%
0.3%

Industrials

11.1%
0.0%

Real Estate

10.2%
97.3%

Energy

9.2%
0.1%

Healthcare

8.8%

-

Consumer Cyclical

8.7%

-

Utilities

5.7%

-

Basic Materials

5.4%
1.1%

Consumer Defensive

2.0%

-

Communication Services

1.6%
0.6%

Financial Services

IWN
24.2%
VNQ
0.1%

Technology

IWN
12.4%
VNQ
0.3%

Industrials

IWN
11.1%
VNQ
0.0%

Real Estate

IWN
10.2%
VNQ
97.3%

Energy

IWN
9.2%
VNQ
0.1%

Healthcare

IWN
8.8%
VNQ

-

Consumer Cyclical

IWN
8.7%
VNQ

-

Utilities

IWN
5.7%
VNQ

-

Basic Materials

IWN
5.4%
VNQ
1.1%

Consumer Defensive

IWN
2.0%
VNQ

-

Communication Services

IWN
1.6%
VNQ
0.6%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Russell 2000 Value ETF

Vanguard Real Estate ETF

Often compared with IWN:
IWN vs. IWMIWN vs. IWOIWN vs. VTWOIWN vs. IJSIWN vs. IWSIWN vs. IWVIWN vs. IWX
Often compared with VNQ:
VNQ vs. SCHHVNQ vs. VOOVNQ vs. SPYVNQ vs. XLREVNQ vs. VNQIVNQ vs. SCHDVNQ vs. REET

Return for Risk

IWN vs. VNQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IWN
IWN Risk / Return Rank: 8585
Overall Rank
IWN Sharpe Ratio Rank: 8484
Sharpe Ratio Rank
IWN Sortino Ratio Rank: 8484
Sortino Ratio Rank
IWN Omega Ratio Rank: 7878
Omega Ratio Rank
IWN Calmar Ratio Rank: 9191
Calmar Ratio Rank
IWN Martin Ratio Rank: 8888
Martin Ratio Rank
VNQ
VNQ Risk / Return Rank: 3232
Overall Rank
VNQ Sharpe Ratio Rank: 3030
Sharpe Ratio Rank
VNQ Sortino Ratio Rank: 2828
Sortino Ratio Rank
VNQ Omega Ratio Rank: 2828
Omega Ratio Rank
VNQ Calmar Ratio Rank: 3535
Calmar Ratio Rank
VNQ Martin Ratio Rank: 3636
Martin Ratio Rank
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.

IWN vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 2000 Value ETF (IWN) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

IWNVNQDifference
Sharpe ratioReturn per unit of total volatility
2.35
0.96

+1.39

Sortino ratioReturn per unit of downside risk
3.27
1.39

+1.88

Omega ratioGain probability vs. loss probability

1.40

1.17

+0.22

Calmar ratioReturn relative to maximum drawdown

5.02

1.56

+3.47

Martin ratioReturn relative to average drawdown

16.91

4.90

+12.01

IWN vs. VNQ - Sharpe Ratio Comparison

The current IWN Sharpe Ratio is 2.35, which is higher than the VNQ Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of IWN 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.

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Drawdowns

IWN vs. VNQ - Drawdown Comparison

The maximum IWN drawdown since its inception was -61.55%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for IWN and VNQ.

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Drawdown Indicators

IWNVNQDifference

Max Drawdown

Largest peak-to-trough decline

-61.55%

-73.07%

+11.52%

Max Drawdown (1Y)

Largest decline over 1 year

-8.45%

-8.34%

-0.11%

Max Drawdown (3Y)

Largest decline over 3 years

-26.70%

-17.46%

-9.24%

Max Drawdown (5Y)

Largest decline over 5 years

-26.70%

-34.48%

+7.78%

Max Drawdown (10Y)

Largest decline over 10 years

-46.08%

-42.40%

-3.68%

Current Drawdown

Current decline from peak

0.00%

0.00%

0.00%

Average Drawdown

Average peak-to-trough decline

-10.15%

-13.61%

+3.46%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.51%

2.65%

-0.14%

Volatility

IWN vs. VNQ - Volatility Comparison

iShares Russell 2000 Value ETF (IWN) has a higher volatility of 5.80% compared to Vanguard Real Estate ETF (VNQ) at 4.72%. This indicates that IWN'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.

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Volatility by Period

IWNVNQDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.80%

4.72%

+1.08%

Volatility (6M)

Calculated over the trailing 6-month period

12.25%

9.77%

+2.48%

Volatility (1Y)

Calculated over the trailing 1-year period

18.09%

13.54%

+4.55%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

21.47%

18.84%

+2.63%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

23.41%

20.72%

+2.69%

IWN vs. VNQ - Expense Ratio Comparison

IWN has a 0.24% 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

IWN vs. VNQ - Dividend Comparison

IWN's dividend yield for the trailing twelve months is around 1.42%, less than VNQ's 3.54% yield.

PositionTTM20252024202320222021202020192018201720162015
IWN
iShares Russell 2000 Value ETF		1.42%1.70%1.80%2.04%2.12%1.48%1.60%1.92%1.99%1.78%1.74%2.15%
VNQ
Vanguard Real Estate ETF		3.54%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

IWN and VNQ have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

IWN has higher volatility (5.80%) compared to VNQ (4.72%). In terms of maximum drawdown, IWN dropped -61.55% vs VNQ's -73.07%.

On 10-year performance, IWN leads with 10.58% vs 5.65% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 4.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IWN has performed better with a 10.58% return vs 5.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VNQ is cheaper with a 0.13% expense ratio, compared with 0.24% for IWN.

VNQ has the higher dividend yield at 3.54%, compared with 1.42% for IWN.

IWN is categorized as Small Cap Value Equities, while VNQ is REIT. IWN tracks Russell 2000 Value 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: 0.24% for IWN and 0.13% for VNQ.

IWN currently has the higher Sharpe Ratio (2.35 vs 0.96), 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.

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