NREF vs. VT

Last updated Jun 4, 2026

NREF (NexPoint Real Estate Finance, Inc.) is a stock, while VT (Vanguard Total World Stock ETF) is Global Equities fund tracking the FTSE Global All Cap Index. Over the past 5 years, NREF returned 6.73%/yr vs 10.99%/yr for VT. At a 0.37 correlation, their price movements are largely independent.

Performance

NREF vs. VT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in NexPoint Real Estate Finance, Inc. (NREF) and Vanguard Total World Stock ETF (VT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NREF achieves a 14.18% return, which is significantly higher than VT's 12.24% return.

NREF

• 1D: -1.65%
• 1M: 4.44%
• YTD: 14.18%
• 6M: 12.45%
• 1Y: 18.29%
• 3Y*: 18.35%
• 5Y*: 6.73%
• 10Y*: —

VT

• 1D: -0.88%
• 1M: 4.91%
• YTD: 12.24%
• 6M: 13.14%
• 1Y: 29.24%
• 3Y*: 20.93%
• 5Y*: 10.99%
• 10Y*: 12.74%

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

NREF vs. VT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
NREF NexPoint Real Estate Finance, Inc.	14.18%	2.28%	13.51%	17.36%	-8.90%	27.81%	-2.81%
VT Vanguard Total World Stock ETF	12.24%	22.43%	16.49%	22.02%	-18.00%	18.27%	15.40%

Correlation

The correlation between NREF and VT 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	0.36
Correlation (5Y) Calculated over the trailing 5-year period	0.40
Correlation (All Time) Calculated using the full available price history since Feb 10, 2020	0.37

Return for Risk

NREF vs. VT — Risk / Return Rank

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

NREF

NREF Risk / Return Rank: 62
NREF Sharpe Ratio Rank: 64
NREF Sortino Ratio Rank: 55
NREF Omega Ratio Rank: 55
NREF Calmar Ratio Rank: 67
NREF Martin Ratio Rank: 66

VT

VT Risk / Return Rank: 67
VT Sharpe Ratio Rank: 68
VT Sortino Ratio Rank: 68
VT Omega Ratio Rank: 67
VT Calmar Ratio Rank: 60
VT Martin Ratio Rank: 71

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.

NREF vs. VT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for NexPoint Real Estate Finance, Inc. (NREF) and Vanguard Total World Stock ETF (VT). 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.

	NREF	VT	Difference
Sharpe ratio Return per unit of total volatility	0.71	2.31	-1.60
Sortino ratio Return per unit of downside risk	1.08	3.20	-2.12
Omega ratio Gain probability vs. loss probability	1.14	1.42	-0.28
Calmar ratio Return relative to maximum drawdown	1.42	3.04	-1.61
Martin ratio Return relative to average drawdown	3.01	13.53	-10.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NREF vs. VT - Sharpe Ratio Comparison

The current NREF Sharpe Ratio is 0.71, which is lower than the VT Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of NREF and VT, 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

	NREF	VT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.71	2.31	-1.60
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	0.69	-0.48
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.74	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.21	0.44	-0.23

Drawdowns

NREF vs. VT - Drawdown Comparison

The maximum NREF drawdown since its inception was -66.09%, which is greater than VT's maximum drawdown of -50.27%. Use the drawdown chart below to compare losses from any high point for NREF and VT.

Drawdown Indicators

	NREF	VT	Difference
Max Drawdown Largest peak-to-trough decline	-66.09%	-50.27%	-15.82%
Max Drawdown (1Y) Largest decline over 1 year	-12.92%	-9.67%	-3.25%
Max Drawdown (3Y) Largest decline over 3 years	-24.00%	-16.51%	-7.49%
Max Drawdown (5Y) Largest decline over 5 years	-44.78%	-26.38%	-18.40%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.24%	—
Current Drawdown Current decline from peak	-3.00%	-0.88%	-2.12%
Average Drawdown Average peak-to-trough decline	-16.86%	-7.02%	-9.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.08%	2.17%	+3.91%

Volatility

NREF vs. VT - Volatility Comparison

NexPoint Real Estate Finance, Inc. (NREF) has a higher volatility of 7.63% compared to Vanguard Total World Stock ETF (VT) at 3.83%. This indicates that NREF's price experiences larger fluctuations and is considered to be riskier than VT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NREF	VT	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.63%	3.83%	+3.80%
Volatility (6M) Calculated over the trailing 6-month period	16.81%	10.17%	+6.64%
Volatility (1Y) Calculated over the trailing 1-year period	25.93%	12.70%	+13.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.22%	16.05%	+17.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	45.77%	17.23%	+28.54%

Dividends

NREF vs. VT - Dividend Comparison

NREF's dividend yield for the trailing twelve months is around 12.89%, more than VT's 1.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NREF NexPoint Real Estate Finance, Inc.	12.89%	14.20%	12.75%	17.40%	12.59%	9.87%	8.59%	0.00%	0.00%	0.00%	0.00%	0.00%
VT Vanguard Total World Stock ETF	1.59%	1.82%	1.95%	2.08%	2.20%	1.82%	1.66%	2.32%	2.53%	2.11%	2.39%	2.45%

Frequently Asked Questions

Can I hold both NREF and VT in my portfolio?

NREF and VT 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.

Which is riskier, NREF or VT?

NREF has higher volatility (7.63%) compared to VT (3.83%). In terms of maximum drawdown, NREF dropped -66.09% vs VT's -50.27%.

Which has better risk-adjusted returns?

VT currently has the higher Sharpe Ratio (2.31 vs 0.71), 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.