REAI vs. VNQ

Last updated Jun 4, 2026

REAI (Intelligent Real Estate ETF) and VNQ (Vanguard Real Estate ETF) are both REIT funds. REAI is actively managed, while VNQ is passively managed. Over the past year, REAI returned 13.25% vs 9.97% for VNQ. Their correlation of 0.87 suggests significant overlap in exposure. REAI charges 0.59%/yr vs 0.13%/yr for VNQ.

Performance

REAI vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Intelligent Real Estate ETF (REAI) 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, REAI achieves a 13.24% return, which is significantly higher than VNQ's 7.83% return.

REAI

• 1D: -0.80%
• 1M: -0.84%
• YTD: 13.24%
• 6M: 13.01%
• 1Y: 13.25%
• 3Y*: —
• 5Y*: —
• 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)

REAI vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
REAI Intelligent Real Estate ETF	13.24%	-6.08%	8.00%	1.46%
VNQ Vanguard Real Estate ETF	7.83%	3.24%	4.81%	9.74%

Correlation

The correlation between REAI and VNQ is 0.78, 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	0.78
Correlation (All Time) Calculated using the full available price history since Jun 14, 2023	0.87

The correlation between REAI and VNQ has been stable across timeframes, ranging from 0.78 to 0.87 - a consistent structural relationship.

REAI vs. VNQ - Sectors Allocation Comparison

Sectors	REAI	VNQ
Real Estate	97.9%	97.3%
Technology	2.1%	0.3%
Communication Services	1.8%	0.6%
Basic Materials	-	1.1%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.1%
Financial Services	-	0.1%
Healthcare	-	-
Industrials	-	0.0%
Utilities	-	-

Return for Risk

REAI vs. VNQ — Risk / Return Rank

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

REAI

REAI Risk / Return Rank: 25
REAI Sharpe Ratio Rank: 25
REAI Sortino Ratio Rank: 24
REAI Omega Ratio Rank: 24
REAI Calmar Ratio Rank: 26
REAI Martin Ratio Rank: 24

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.

REAI vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Intelligent Real Estate ETF (REAI) 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.

	REAI	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	1.16	1.14	+0.02
Calmar ratio: Return relative to maximum drawdown	1.20	1.20	0.00
Martin ratio: Return relative to average drawdown	3.08	3.78	-0.70
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

REAI vs. VNQ - Sharpe Ratio Comparison

The current REAI 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 REAI 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

	REAI	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	—	0.12	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.25	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.29	0.26	+0.03

Drawdowns

REAI vs. VNQ - Drawdown Comparison

The maximum REAI drawdown since its inception was -22.29%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for REAI and VNQ.

Drawdown Indicators

	REAI	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-22.29%	-73.07%	+50.78%
Max Drawdown (1Y) Largest decline over 1 year	-11.08%	-8.34%	-2.74%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.46%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-34.48%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-42.40%	—
Current Drawdown Current decline from peak	-3.62%	-3.75%	+0.13%
Average Drawdown Average peak-to-trough decline	-7.30%	-13.63%	+6.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.31%	2.64%	+1.67%

Volatility

REAI vs. VNQ - Volatility Comparison

Intelligent Real Estate ETF (REAI) and Vanguard Real Estate ETF (VNQ) have volatilities of 3.87% 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

	REAI	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.87%	3.72%	+0.15%
Volatility (6M) Calculated over the trailing 6-month period	10.47%	9.26%	+1.21%
Volatility (1Y) Calculated over the trailing 1-year period	15.39%	13.16%	+2.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.06%	18.80%	-0.74%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.06%	20.70%	-2.64%

REAI vs. VNQ - Expense Ratio Comparison

REAI has a 0.59% expense ratio, which is higher than VNQ's 0.13% expense ratio.

Dividends

REAI vs. VNQ - Dividend Comparison

REAI's dividend yield for the trailing twelve months is around 3.27%, less than VNQ's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
REAI Intelligent Real Estate ETF	3.27%	4.52%	3.34%	1.99%	0.00%	0.00%	0.00%	0.00%	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 REAI and VNQ in my portfolio?

REAI and VNQ have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, REAI or VNQ?

REAI has higher volatility (3.87%) compared to VNQ (3.72%). In terms of maximum drawdown, REAI dropped -22.29% vs VNQ's -73.07%.

Which ETF is better, REAI or VNQ?

On 1-year performance, REAI leads with 13.25% vs 9.97% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 3.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, REAI or VNQ?

Over the 1-year period, REAI has performed better with a 13.25% return vs 9.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, REAI or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.59% for REAI.

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

VNQ has the higher dividend yield at 3.69%, compared with 3.27% for REAI.

What is the main difference between REAI and VNQ?

They also come from different issuers: Armada ETF Advisors and Vanguard. Their fees differ too: 0.59% for REAI and 0.13% for VNQ.

Which has better risk-adjusted returns?

REAI 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.