QAI vs. VNQ

Last updated Jun 12, 2026

QAI (IQ Hedge Multi-Strategy Tracker ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - QAI is a Long-Short fund tracking the IQ Hedge Multi-Strategy 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, QAI returned 3.84%/yr vs 5.53%/yr for VNQ. At a 0.48 correlation, their price movements are largely independent. QAI charges 0.79%/yr vs 0.13%/yr for VNQ.

Performance

QAI vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in IQ Hedge Multi-Strategy Tracker ETF (QAI) 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, QAI achieves a 8.18% return, which is significantly lower than VNQ's 11.49% return. Over the past 10 years, QAI has underperformed VNQ with an annualized return of 3.84%, while VNQ has yielded a comparatively higher 5.53% annualized return.

QAI

• 1D: 1.23%
• 1M: 0.42%
• YTD: 8.18%
• 6M: 7.84%
• 1Y: 14.62%
• 3Y*: 9.79%
• 5Y*: 4.38%
• 10Y*: 3.84%

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)

QAI vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QAI IQ Hedge Multi-Strategy Tracker ETF	8.18%	8.29%	6.67%	10.07%	-8.68%	-0.16%	5.73%	8.68%	-3.32%	6.17%
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 QAI and VNQ is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.47
Correlation (5Y) Calculated over the trailing 5-year period	0.54
Correlation (10Y) Calculated over the trailing 10-year period	0.49
Correlation (All Time) Calculated using the full available price history since Mar 25, 2009	0.48

The correlation between QAI and VNQ shifts across timeframes, from 0.34 (1 year) to 0.54 (5 years), reflecting how their relationship changes across market environments.

QAI vs. VNQ - Sectors Allocation Comparison

Sectors	QAI	VNQ
Technology	21.9%	0.3%
Financial Services	19.5%	0.1%
Industrials	13.6%	0.0%
Communication Services	11.2%	0.6%
Consumer Cyclical	7.3%	-
Healthcare	7.1%	-
Basic Materials	5.3%	1.1%
Utilities	3.8%	-
Energy	3.7%	0.1%
Consumer Defensive	3.7%	-
Real Estate	2.9%	97.3%

Return for Risk

QAI vs. VNQ — Risk / Return Rank

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

QAI

QAI Risk / Return Rank: 86
QAI Sharpe Ratio Rank: 85
QAI Sortino Ratio Rank: 85
QAI Omega Ratio Rank: 87
QAI Calmar Ratio Rank: 85
QAI Martin Ratio Rank: 87

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.

QAI vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ Hedge Multi-Strategy Tracker ETF (QAI) 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.

	QAI	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	2.30	0.92	+1.37
Sortino ratio: Return per unit of downside risk	3.21	1.35	+1.86
Omega ratio: Gain probability vs. loss probability	1.45	1.17	+0.29
Calmar ratio: Return relative to maximum drawdown	3.95	1.50	+2.46
Martin ratio: Return relative to average drawdown	15.66	4.71	+10.95

QAI vs. VNQ - Sharpe Ratio Comparison

The current QAI Sharpe Ratio is 2.30, which is higher than the VNQ Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of QAI 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

QAI vs. VNQ - Drawdown Comparison

The maximum QAI drawdown since its inception was -14.95%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for QAI and VNQ.

Drawdown Indicators

	QAI	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-14.95%	-73.07%	+58.12%
Max Drawdown (1Y) Largest decline over 1 year	-3.71%	-8.34%	+4.63%
Max Drawdown (3Y) Largest decline over 3 years	-7.78%	-17.46%	+9.68%
Max Drawdown (5Y) Largest decline over 5 years	-14.32%	-34.48%	+20.16%
Max Drawdown (10Y) Largest decline over 10 years	-14.95%	-42.40%	+27.45%
Current Drawdown Current decline from peak	-1.17%	-0.49%	-0.68%
Average Drawdown Average peak-to-trough decline	-2.57%	-13.61%	+11.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.94%	2.65%	-1.71%

Volatility

QAI vs. VNQ - Volatility Comparison

The current volatility for IQ Hedge Multi-Strategy Tracker ETF (QAI) is 2.83%, while Vanguard Real Estate ETF (VNQ) has a volatility of 4.74%. This indicates that QAI 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

	QAI	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.83%	4.74%	-1.91%
Volatility (6M) Calculated over the trailing 6-month period	5.41%	9.74%	-4.33%
Volatility (1Y) Calculated over the trailing 1-year period	6.39%	13.52%	-7.13%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.63%	18.85%	-12.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.21%	20.72%	-14.51%

QAI vs. VNQ - Expense Ratio Comparison

QAI has a 0.79% expense ratio, which is higher than VNQ's 0.13% expense ratio.

Dividends

QAI vs. VNQ - Dividend Comparison

QAI's dividend yield for the trailing twelve months is around 1.39%, less than VNQ's 3.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
QAI IQ Hedge Multi-Strategy Tracker ETF	1.39%	1.50%	2.22%	4.08%	2.00%	0.28%	1.98%	1.91%	1.90%	0.00%	0.00%	0.48%
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 QAI and VNQ in my portfolio?

QAI and VNQ have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QAI or VNQ?

VNQ has higher volatility (4.74%) compared to QAI (2.83%). In terms of maximum drawdown, QAI dropped -14.95% vs VNQ's -73.07%.

Which ETF is better, QAI or VNQ?

On 10-year performance, VNQ leads with 5.53% vs 3.84% for QAI. On fees, VNQ is cheaper at 0.13% per year. On volatility, QAI has been the lower-risk option at 2.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QAI or VNQ?

Over the 10-year period, VNQ has performed better with a 5.53% return vs 3.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QAI or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.79% for QAI.

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

VNQ has the higher dividend yield at 3.57%, compared with 1.39% for QAI.

What is the main difference between QAI and VNQ?

QAI is categorized as Long-Short, while VNQ is REIT. QAI tracks IQ Hedge Multi-Strategy Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: New York Life and Vanguard. Their fees differ too: 0.79% for QAI and 0.13% for VNQ.

Which has better risk-adjusted returns?

QAI currently has the higher Sharpe Ratio (2.30 vs 0.92), 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.