NETL vs. VNQ

Last updated Jun 4, 2026

NETL (NETLease Corporate Real Estate ETF) and VNQ (Vanguard Real Estate ETF) are both REIT funds - NETL tracks the Fundamental Income Net Lease Real Estate Index while VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 5 years, NETL returned 1.33%/yr vs 2.18%/yr for VNQ. Their correlation of 0.88 suggests significant overlap in exposure. NETL charges 0.60%/yr vs 0.13%/yr for VNQ.

Performance

NETL vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in NETLease Corporate Real Estate ETF (NETL) 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, NETL achieves a 10.34% return, which is significantly higher than VNQ's 7.83% return.

NETL

• 1D: -1.14%
• 1M: -1.07%
• YTD: 10.34%
• 6M: 9.20%
• 1Y: 11.59%
• 3Y*: 7.12%
• 5Y*: 1.33%
• 10Y*: —

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)

NETL vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
NETL NETLease Corporate Real Estate ETF	10.34%	6.05%	-1.08%	2.69%	-16.16%	27.36%	-0.73%	13.15%
VNQ Vanguard Real Estate ETF	7.83%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	11.49%

Correlation

The correlation between NETL and VNQ is 0.80, 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	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Mar 25, 2019	0.88

The correlation between NETL and VNQ has been stable across timeframes, ranging from 0.80 to 0.88 - a consistent structural relationship.

NETL vs. VNQ - Sectors Allocation Comparison

Sectors	NETL	VNQ
Real Estate	100.0%	97.3%
Basic Materials	-	1.1%
Communication Services	-	0.6%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.1%
Financial Services	-	0.1%
Healthcare	-	-
Industrials	-	0.0%
Technology	-	0.3%
Utilities	-	-

Return for Risk

NETL vs. VNQ — Risk / Return Rank

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

NETL

NETL Risk / Return Rank: 25
NETL Sharpe Ratio Rank: 24
NETL Sortino Ratio Rank: 23
NETL Omega Ratio Rank: 22
NETL Calmar Ratio Rank: 26
NETL Martin Ratio Rank: 29

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.

NETL vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NETLease Corporate Real Estate ETF (NETL) 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.

	NETL	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	0.86	0.76	+0.10
Sortino ratio: Return per unit of downside risk	1.26	1.12	+0.14
Omega ratio: Gain probability vs. loss probability	1.15	1.14	+0.01
Calmar ratio: Return relative to maximum drawdown	1.27	1.20	+0.07
Martin ratio: Return relative to average drawdown	3.99	3.78	+0.21
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NETL vs. VNQ - Sharpe Ratio Comparison

The current NETL Sharpe Ratio is 0.86, which is comparable to the VNQ Sharpe Ratio of 0.76. The chart below compares the historical Sharpe Ratios of NETL 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

	NETL	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.86	0.76	+0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.07	0.12	-0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.25	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.20	0.26	-0.07

Drawdowns

NETL vs. VNQ - Drawdown Comparison

The maximum NETL drawdown since its inception was -51.48%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for NETL and VNQ.

Drawdown Indicators

	NETL	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-51.48%	-73.07%	+21.59%
Max Drawdown (1Y) Largest decline over 1 year	-9.16%	-8.34%	-0.82%
Max Drawdown (3Y) Largest decline over 3 years	-19.30%	-17.46%	-1.84%
Max Drawdown (5Y) Largest decline over 5 years	-30.74%	-34.48%	+3.74%
Max Drawdown (10Y) Largest decline over 10 years	—	-42.40%	—
Current Drawdown Current decline from peak	-3.68%	-3.75%	+0.07%
Average Drawdown Average peak-to-trough decline	-11.65%	-13.63%	+1.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.91%	2.64%	+0.27%

Volatility

NETL vs. VNQ - Volatility Comparison

NETLease Corporate Real Estate ETF (NETL) and Vanguard Real Estate ETF (VNQ) have volatilities of 3.66% and 3.72%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NETL	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.66%	3.72%	-0.06%
Volatility (6M) Calculated over the trailing 6-month period	9.66%	9.26%	+0.40%
Volatility (1Y) Calculated over the trailing 1-year period	13.57%	13.16%	+0.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.94%	18.80%	-0.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.92%	20.70%	+5.22%

NETL vs. VNQ - Expense Ratio Comparison

NETL has a 0.60% expense ratio, which is higher than VNQ's 0.13% expense ratio.

Dividends

NETL vs. VNQ - Dividend Comparison

NETL's dividend yield for the trailing twelve months is around 4.83%, more than VNQ's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NETL NETLease Corporate Real Estate ETF	4.83%	5.12%	5.08%	4.57%	4.47%	4.03%	3.98%	2.52%	0.00%	0.00%	0.00%	0.00%
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 NETL and VNQ in my portfolio?

NETL and VNQ have a correlation of 0.80, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NETL or VNQ?

VNQ has higher volatility (3.72%) compared to NETL (3.66%). In terms of maximum drawdown, NETL dropped -51.48% vs VNQ's -73.07%.

Which ETF is better, NETL or VNQ?

On 5-year performance, VNQ leads with 2.18% vs 1.33% for NETL. On fees, VNQ is cheaper at 0.13% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, NETL or VNQ?

Over the 5-year period, VNQ has performed better with a 2.18% return vs 1.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, NETL or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.60% for NETL.

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

NETL has the higher dividend yield at 4.83%, compared with 3.69% for VNQ.

What is the main difference between NETL and VNQ?

NETL tracks Fundamental Income Net Lease Real Estate Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: Exchange Traded Concepts and Vanguard. Their fees differ too: 0.60% for NETL and 0.13% for VNQ.

Which has better risk-adjusted returns?

NETL currently has the higher Sharpe Ratio (0.86 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.