PSP vs. VNQ

Last updated Jun 12, 2026

PSP (Invesco Global Listed Private Equity ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - PSP is a Global Equities fund tracking the Red Rocks Global Listed Private Equity 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, PSP returned 7.95%/yr vs 5.53%/yr for VNQ. A 0.61 correlation means they provide meaningful diversification when combined. PSP charges 1.44%/yr vs 0.13%/yr for VNQ.

Performance

PSP vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Global Listed Private Equity ETF (PSP) 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, PSP achieves a -12.54% return, which is significantly lower than VNQ's 11.49% return. Over the past 10 years, PSP has outperformed VNQ with an annualized return of 7.95%, while VNQ has yielded a comparatively lower 5.53% annualized return.

PSP

• 1D: 1.16%
• 1M: -4.02%
• YTD: -12.54%
• 6M: -12.47%
• 1Y: -8.70%
• 3Y*: 9.46%
• 5Y*: -0.03%
• 10Y*: 7.95%

VNQ

• 1D: -0.07%
• 1M: 0.95%
• YTD: 11.49%
• 6M: 11.16%
• 1Y: 12.43%
• 3Y*: 10.04%
• 5Y*: 2.36%
• 10Y*: 5.53%

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

PSP vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PSP Invesco Global Listed Private Equity ETF	-12.54%	6.49%	17.42%	37.72%	-37.37%	27.30%	12.47%	35.73%	-15.12%	24.13%
VNQ Vanguard Real Estate ETF	11.49%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between PSP and VNQ is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Oct 24, 2006	0.61

The correlation between PSP and VNQ shifts across timeframes, from 0.47 (1 year) to 0.61 (all time), reflecting how their relationship changes across market environments.

PSP vs. VNQ - Sectors Allocation Comparison

Sectors	PSP	VNQ
Financial Services	90.7%	0.1%
Consumer Defensive	5.4%	-
Industrials	3.2%	0.0%
Communication Services	1.0%	0.6%
Healthcare	0.5%	-
Basic Materials	0.1%	1.1%
Technology	0.1%	0.3%
Consumer Cyclical	-	-
Energy	-	0.1%
Real Estate	-	97.3%
Utilities	-	-

Return for Risk

PSP vs. VNQ — Risk / Return Rank

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

PSP

PSP Risk / Return Rank: 6
PSP Sharpe Ratio Rank: 6
PSP Sortino Ratio Rank: 6
PSP Omega Ratio Rank: 6
PSP Calmar Ratio Rank: 6
PSP Martin Ratio Rank: 6

VNQ

VNQ Risk / Return Rank: 32
VNQ Sharpe Ratio Rank: 31
VNQ Sortino Ratio Rank: 29
VNQ Omega Ratio Rank: 29
VNQ Calmar Ratio Rank: 36
VNQ Martin Ratio Rank: 36

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.

PSP vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Global Listed Private Equity ETF (PSP) 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.

	PSP	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	-0.43	0.92	-1.36
Sortino ratio: Return per unit of downside risk	-0.47	1.35	-1.81
Omega ratio: Gain probability vs. loss probability	0.94	1.17	-0.22
Calmar ratio: Return relative to maximum drawdown	-0.39	1.50	-1.89
Martin ratio: Return relative to average drawdown	-0.87	4.71	-5.58

PSP vs. VNQ - Sharpe Ratio Comparison

The current PSP Sharpe Ratio is -0.43, which is lower than the VNQ Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of PSP 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.

Drawdowns

PSP vs. VNQ - Drawdown Comparison

The maximum PSP drawdown since its inception was -85.40%, which is greater than VNQ's maximum drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for PSP and VNQ.

Drawdown Indicators

	PSP	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-85.40%	-73.07%	-12.33%
Max Drawdown (1Y) Largest decline over 1 year	-22.37%	-8.34%	-14.03%
Max Drawdown (3Y) Largest decline over 3 years	-22.94%	-17.46%	-5.48%
Max Drawdown (5Y) Largest decline over 5 years	-47.16%	-34.48%	-12.68%
Max Drawdown (10Y) Largest decline over 10 years	-47.16%	-42.40%	-4.76%
Current Drawdown Current decline from peak	-16.81%	-0.49%	-16.32%
Average Drawdown Average peak-to-trough decline	-30.67%	-13.61%	-17.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.03%	2.65%	+7.38%

Volatility

PSP vs. VNQ - Volatility Comparison

Invesco Global Listed Private Equity ETF (PSP) has a higher volatility of 7.36% compared to Vanguard Real Estate ETF (VNQ) at 4.74%. This indicates that PSP'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.

Volatility by Period

	PSP	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.36%	4.74%	+2.62%
Volatility (6M) Calculated over the trailing 6-month period	16.50%	9.74%	+6.76%
Volatility (1Y) Calculated over the trailing 1-year period	20.25%	13.52%	+6.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.85%	18.85%	+5.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.47%	20.72%	+1.75%

PSP vs. VNQ - Expense Ratio Comparison

PSP has a 1.44% expense ratio, which is higher than VNQ's 0.13% expense ratio.

Dividends

PSP vs. VNQ - Dividend Comparison

PSP's dividend yield for the trailing twelve months is around 6.61%, more than VNQ's 3.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
PSP Invesco Global Listed Private Equity ETF	6.61%	5.87%	8.62%	3.96%	2.88%	10.34%	4.66%	5.87%	6.81%	10.18%	4.12%	6.23%
VNQ Vanguard Real Estate ETF	3.57%	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 PSP and VNQ in my portfolio?

PSP and VNQ have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSP or VNQ?

PSP has higher volatility (7.36%) compared to VNQ (4.74%). In terms of maximum drawdown, PSP dropped -85.40% vs VNQ's -73.07%.

Which ETF is better, PSP or VNQ?

On 10-year performance, PSP leads with 7.95% vs 5.53% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 4.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSP or VNQ?

Over the 10-year period, PSP has performed better with a 7.95% return vs 5.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSP or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 1.44% for PSP.

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

PSP has the higher dividend yield at 6.61%, compared with 3.57% for VNQ.

What is the main difference between PSP and VNQ?

PSP is categorized as Global Equities, while VNQ is REIT. PSP tracks Red Rocks Global Listed Private Equity Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: Invesco and Vanguard. Their fees differ too: 1.44% for PSP and 0.13% for VNQ.

Which has better risk-adjusted returns?

VNQ currently has the higher Sharpe Ratio (0.92 vs -0.43), 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.