PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
IWV vs. VNQ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IWV vs. VNQ

Last updated Jun 13, 2026

IWV (iShares Russell 3000 ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - IWV is a Large Cap Blend Equities fund tracking the Russell 3000 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, IWV returned 14.84%/yr vs 5.65%/yr for VNQ. A 0.67 correlation means they provide meaningful diversification when combined. IWV charges 0.20%/yr vs 0.13%/yr for VNQ.

Performance

IWV vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Russell 3000 ETF (IWV) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, IWV achieves a 9.30% return, which is significantly lower than VNQ's 12.51% return. Over the past 10 years, IWV has outperformed VNQ with an annualized return of 14.84%, while VNQ has yielded a comparatively lower 5.65% annualized return.

IWV

1D
0.53%
1M
-0.32%
YTD
9.30%
6M
9.38%
1Y
25.70%
3Y*
20.32%
5Y*
12.07%
10Y*
14.84%

VNQ

1D
0.92%
1M
3.35%
YTD
12.51%
6M
12.32%
1Y
14.02%
3Y*
10.14%
5Y*
2.55%
10Y*
5.65%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IWV vs. VNQ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IWV
iShares Russell 3000 ETF		9.30%16.96%23.49%25.82%-19.28%25.54%20.55%30.66%-5.43%20.97%
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 IWV and VNQ is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.35

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

0.51

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

0.62

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

0.59

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

0.67

Over the past year, the correlation between IWV and VNQ has dropped to 0.35 - well below their long-term average of 0.67, suggesting their price drivers have been diverging.

IWV vs. VNQ - Sectors Allocation Comparison

Sectors
IWV
VNQ

Technology

33.1%
0.3%

Financial Services

12.2%
0.1%

Communication Services

10.5%
0.6%

Consumer Cyclical

10.2%

-

Industrials

9.6%
0.0%

Healthcare

9.1%

-

Consumer Defensive

4.7%

-

Energy

3.8%
0.1%

Real Estate

2.4%
97.3%

Utilities

2.3%

-

Basic Materials

2.2%
1.1%

Technology

IWV
33.1%
VNQ
0.3%

Financial Services

IWV
12.2%
VNQ
0.1%

Communication Services

IWV
10.5%
VNQ
0.6%

Consumer Cyclical

IWV
10.2%
VNQ

-

Industrials

IWV
9.6%
VNQ
0.0%

Healthcare

IWV
9.1%
VNQ

-

Consumer Defensive

IWV
4.7%
VNQ

-

Energy

IWV
3.8%
VNQ
0.1%

Real Estate

IWV
2.4%
VNQ
97.3%

Utilities

IWV
2.3%
VNQ

-

Basic Materials

IWV
2.2%
VNQ
1.1%

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 3000 ETF

Vanguard Real Estate ETF

Often compared with IWV:
IWV vs. SPYIWV vs. VTIIWV vs. IWMIWV vs. ACWXIWV vs. VTHRIWV vs. IVVIWV vs. RSP
Often compared with VNQ:
VNQ vs. SCHHVNQ vs. VOOVNQ vs. SPYVNQ vs. XLREVNQ vs. VNQIVNQ vs. SCHDVNQ vs. REET

Return for Risk

IWV vs. VNQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IWV
IWV Risk / Return Rank: 6868
Overall Rank
IWV Sharpe Ratio Rank: 6969
Sharpe Ratio Rank
IWV Sortino Ratio Rank: 6767
Sortino Ratio Rank
IWV Omega Ratio Rank: 6868
Omega Ratio Rank
IWV Calmar Ratio Rank: 6262
Calmar Ratio Rank
IWV Martin Ratio Rank: 7575
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.

IWV vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Russell 3000 ETF (IWV) 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.

IWVVNQDifference
Sharpe ratioReturn per unit of total volatility
1.94
0.96

+0.98

Sortino ratioReturn per unit of downside risk
2.64
1.39

+1.25

Omega ratioGain probability vs. loss probability

1.35

1.17

+0.18

Calmar ratioReturn relative to maximum drawdown

2.74

1.56

+1.18

Martin ratioReturn relative to average drawdown

12.28

4.90

+7.38

IWV vs. VNQ - Sharpe Ratio Comparison

The current IWV Sharpe Ratio is 1.94, which is higher than the VNQ Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of IWV 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.

Loading charts...

Drawdowns

IWV vs. VNQ - Drawdown Comparison

The maximum IWV drawdown since its inception was -55.61%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for IWV and VNQ.

Loading charts...

Drawdown Indicators

IWVVNQDifference

Max Drawdown

Largest peak-to-trough decline

-55.61%

-73.07%

+17.46%

Max Drawdown (1Y)

Largest decline over 1 year

-8.89%

-8.34%

-0.55%

Max Drawdown (3Y)

Largest decline over 3 years

-19.28%

-17.46%

-1.82%

Max Drawdown (5Y)

Largest decline over 5 years

-25.11%

-34.48%

+9.37%

Max Drawdown (10Y)

Largest decline over 10 years

-35.22%

-42.40%

+7.18%

Current Drawdown

Current decline from peak

-2.09%

0.00%

-2.09%

Average Drawdown

Average peak-to-trough decline

-10.58%

-13.61%

+3.03%

Ulcer Index

Depth and duration of drawdowns from previous peaks

1.98%

2.65%

-0.67%

Volatility

IWV vs. VNQ - Volatility Comparison

The current volatility for iShares Russell 3000 ETF (IWV) is 4.44%, while Vanguard Real Estate ETF (VNQ) has a volatility of 4.72%. This indicates that IWV experiences smaller price fluctuations and is considered to be less risky than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

IWVVNQDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.44%

4.72%

-0.28%

Volatility (6M)

Calculated over the trailing 6-month period

9.75%

9.77%

-0.02%

Volatility (1Y)

Calculated over the trailing 1-year period

12.57%

13.54%

-0.97%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

17.30%

18.84%

-1.54%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

18.43%

20.72%

-2.29%

IWV vs. VNQ - Expense Ratio Comparison

IWV has a 0.20% 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

IWV vs. VNQ - Dividend Comparison

IWV's dividend yield for the trailing twelve months is around 0.87%, less than VNQ's 3.54% yield.

PositionTTM20252024202320222021202020192018201720162015
IWV
iShares Russell 3000 ETF		0.87%0.96%1.08%1.30%1.56%1.04%1.30%1.69%1.97%1.58%1.79%1.99%
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

IWV and VNQ have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VNQ has higher volatility (4.72%) compared to IWV (4.44%). In terms of maximum drawdown, IWV dropped -55.61% vs VNQ's -73.07%.

On 10-year performance, IWV leads with 14.84% vs 5.65% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, IWV has been the lower-risk option at 4.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IWV has performed better with a 14.84% 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 0.20% for IWV.

VNQ has the higher dividend yield at 3.54%, compared with 0.87% for IWV.

IWV is categorized as Large Cap Blend Equities, while VNQ is REIT. IWV tracks Russell 3000 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: 0.20% for IWV and 0.13% for VNQ.

IWV currently has the higher Sharpe Ratio (1.94 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.

Portfolio Optimizer

Find the right allocation for IWV and VNQ

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer