PIREX vs. VNQ

Last updated Jun 5, 2026

PIREX (Principal Real Estate Securities Fund Institutional) and VNQ (Vanguard Real Estate ETF) are both REIT funds - PIREX tracks the U.S. REIT Linked Index while VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 10 years, PIREX returned 6.40%/yr vs 5.47%/yr for VNQ. With a 0.98 correlation, they move nearly in lockstep. PIREX charges 0.86%/yr vs 0.13%/yr for VNQ.

Performance

PIREX vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal Real Estate Securities Fund Institutional (PIREX) 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, PIREX achieves a 10.42% return, which is significantly higher than VNQ's 9.76% return. Over the past 10 years, PIREX has outperformed VNQ with an annualized return of 6.40%, while VNQ has yielded a comparatively lower 5.47% annualized return.

PIREX

• 1D: -0.20%
• 1M: -1.23%
• YTD: 10.42%
• 6M: 9.51%
• 1Y: 8.97%
• 3Y*: 9.04%
• 5Y*: 3.09%
• 10Y*: 6.40%

VNQ

• 1D: 1.79%
• 1M: 0.36%
• YTD: 9.76%
• 6M: 8.93%
• 1Y: 11.63%
• 3Y*: 10.05%
• 5Y*: 2.54%
• 10Y*: 5.47%

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

PIREX vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PIREX Principal Real Estate Securities Fund Institutional	10.42%	1.21%	5.43%	13.32%	-25.23%	39.62%	-3.32%	31.14%	-4.34%	9.00%
VNQ Vanguard Real Estate ETF	9.76%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between PIREX and VNQ is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Sep 30, 2004	0.98

The correlation between PIREX and VNQ has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

Return for Risk

PIREX vs. VNQ — Risk / Return Rank

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

PIREX

PIREX Risk / Return Rank: 11
PIREX Sharpe Ratio Rank: 10
PIREX Sortino Ratio Rank: 9
PIREX Omega Ratio Rank: 9
PIREX Calmar Ratio Rank: 14
PIREX Martin Ratio Rank: 13

VNQ

VNQ Risk / Return Rank: 27
VNQ Sharpe Ratio Rank: 26
VNQ Sortino Ratio Rank: 24
VNQ Omega Ratio Rank: 24
VNQ Calmar Ratio Rank: 29
VNQ Martin Ratio Rank: 31

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.

PIREX vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal Real Estate Securities Fund Institutional (PIREX) 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.

	PIREX	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	0.72	0.88	-0.16
Sortino ratio: Return per unit of downside risk	1.04	1.28	-0.24
Omega ratio: Gain probability vs. loss probability	1.13	1.16	-0.03
Calmar ratio: Return relative to maximum drawdown	1.24	1.40	-0.16
Martin ratio: Return relative to average drawdown	3.34	4.41	-1.07
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PIREX vs. VNQ - Sharpe Ratio Comparison

The current PIREX Sharpe Ratio is 0.72, which is comparable to the VNQ Sharpe Ratio of 0.88. The chart below compares the historical Sharpe Ratios of PIREX 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

	PIREX	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.72	0.88	-0.16
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.17	0.14	+0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.33	0.27	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.37	0.27	+0.10

Drawdowns

PIREX vs. VNQ - Drawdown Comparison

The maximum PIREX drawdown since its inception was -69.88%, roughly equal to the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for PIREX and VNQ.

Drawdown Indicators

	PIREX	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-69.88%	-73.07%	+3.19%
Max Drawdown (1Y) Largest decline over 1 year	-7.44%	-8.34%	+0.90%
Max Drawdown (3Y) Largest decline over 3 years	-15.72%	-17.46%	+1.74%
Max Drawdown (5Y) Largest decline over 5 years	-30.84%	-34.48%	+3.64%
Max Drawdown (10Y) Largest decline over 10 years	-41.22%	-42.40%	+1.18%
Current Drawdown Current decline from peak	-3.30%	-2.03%	-1.27%
Average Drawdown Average peak-to-trough decline	-11.29%	-13.63%	+2.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.75%	2.64%	+0.11%

Volatility

PIREX vs. VNQ - Volatility Comparison

The current volatility for Principal Real Estate Securities Fund Institutional (PIREX) is 3.64%, while Vanguard Real Estate ETF (VNQ) has a volatility of 4.14%. This indicates that PIREX 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.

Volatility by Period

	PIREX	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.64%	4.14%	-0.50%
Volatility (6M) Calculated over the trailing 6-month period	9.27%	9.41%	-0.14%
Volatility (1Y) Calculated over the trailing 1-year period	12.71%	13.27%	-0.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.36%	18.82%	-0.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.68%	20.70%	-1.02%

PIREX vs. VNQ - Expense Ratio Comparison

PIREX has a 0.86% expense ratio, which is higher than VNQ's 0.13% expense ratio.

Dividends

PIREX vs. VNQ - Dividend Comparison

PIREX's dividend yield for the trailing twelve months is around 2.38%, less than VNQ's 3.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PIREX Principal Real Estate Securities Fund Institutional	2.38%	2.67%	4.16%	2.67%	3.56%	4.18%	2.67%	3.02%	4.17%	3.65%	4.45%	6.96%
VNQ Vanguard Real Estate ETF	3.63%	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 PIREX and VNQ in my portfolio?

With a correlation of 0.95, PIREX and VNQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, PIREX or VNQ?

VNQ has higher volatility (4.14%) compared to PIREX (3.64%). In terms of maximum drawdown, PIREX dropped -69.88% vs VNQ's -73.07%.

Which has better risk-adjusted returns?

VNQ currently has the higher Sharpe Ratio (0.88 vs 0.72), 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.