REET vs. VNQ
REET (iShares Global REIT ETF) and VNQ (Vanguard Real Estate ETF) are both REIT funds - REET tracks the FTSE EPRA/NAREIT Global REIT Index while VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 10 years, REET returned 4.37%/yr vs 5.44%/yr for VNQ. Their correlation of 0.94 suggests significant overlap in exposure. REET charges 0.14%/yr vs 0.13%/yr for VNQ.
Performance
REET vs. VNQ - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with REET having a 11.67% return and VNQ slightly higher at 11.77%. Over the past 10 years, REET has underperformed VNQ with an annualized return of 4.37%, while VNQ has yielded a comparatively higher 5.44% annualized return.
REET
- 1D
- 0.77%
- 1M
- 1.11%
- YTD
- 11.67%
- 6M
- 12.03%
- 1Y
- 14.10%
- 3Y*
- 11.63%
- 5Y*
- 2.85%
- 10Y*
- 4.37%
VNQ
- 1D
- 1.31%
- 1M
- 1.13%
- YTD
- 11.77%
- 6M
- 12.16%
- 1Y
- 11.59%
- 3Y*
- 11.30%
- 5Y*
- 2.83%
- 10Y*
- 5.44%
REET vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
REET iShares Global REIT ETF | 11.67% | 7.97% | 2.65% | 10.28% | -24.10% | 32.43% | -10.48% | 24.42% | -5.27% | 7.48% |
VNQ Vanguard Real Estate ETF | 11.77% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
Correlation
The correlation between REET and VNQ is 0.94, 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 | 0.94 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.96 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.95 |
Correlation (All Time) Calculated using the full available price history since Jul 10, 2014 | 0.94 |
The correlation between REET and VNQ has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.
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Return for Risk
REET vs. VNQ — Risk / Return Rank
REET
VNQ
REET vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Global REIT ETF (REET) 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.
| REET | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.29 | ||
| Sortino ratioReturn per unit of downside risk | +0.36 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.15 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.57 | 1.40 | +0.17 |
| Martin ratioReturn relative to average drawdown | 5.60 | 4.37 | +1.23 |
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Drawdowns
REET vs. VNQ - Drawdown Comparison
The maximum REET drawdown since its inception was -44.59%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for REET and VNQ.
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Drawdown Indicators
| REET | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -44.59% | -73.07% | +28.48% |
Max Drawdown (1Y)Largest decline over 1 year | -9.04% | -8.34% | -0.70% |
Max Drawdown (3Y)Largest decline over 3 years | -18.02% | -17.46% | -0.56% |
Max Drawdown (5Y)Largest decline over 5 years | -32.11% | -34.48% | +2.37% |
Max Drawdown (10Y)Largest decline over 10 years | -44.59% | -42.40% | -2.19% |
Current DrawdownCurrent decline from peak | -0.66% | -0.66% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -9.75% | -13.60% | +3.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.52% | 2.66% | -0.14% |
Volatility
REET vs. VNQ - Volatility Comparison
The current volatility for iShares Global REIT ETF (REET) is 4.36%, while Vanguard Real Estate ETF (VNQ) has a volatility of 5.19%. This indicates that REET 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.
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Volatility by Period
| REET | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.36% | 5.19% | -0.83% |
Volatility (6M)Calculated over the trailing 6-month period | 9.39% | 10.20% | -0.81% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.52% | 13.84% | -1.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.97% | 18.86% | -1.89% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.85% | 20.75% | -1.90% |
REET vs. VNQ - Expense Ratio Comparison
REET has a 0.14% expense ratio, which is higher than VNQ's 0.13% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
REET vs. VNQ - Dividend Comparison
REET's dividend yield for the trailing twelve months is around 3.37%, less than VNQ's 3.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
REET iShares Global REIT ETF | 3.37% | 3.67% | 3.64% | 3.27% | 2.43% | 3.18% | 2.65% | 5.25% | 5.73% | 3.84% | 5.37% | 3.56% |
VNQ Vanguard Real Estate ETF | 3.56% | 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
With a correlation of 0.94, REET 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.
VNQ has higher volatility (5.19%) compared to REET (4.36%). In terms of maximum drawdown, REET dropped -44.59% vs VNQ's -73.07%.
On 10-year performance, VNQ leads with 5.44% vs 4.37% for REET. On fees, VNQ is cheaper at 0.13% per year. On volatility, REET has been the lower-risk option at 4.36%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VNQ has performed better with a 5.44% return vs 4.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.14% for REET.
VNQ has the higher dividend yield at 3.56%, compared with 3.37% for REET.
REET tracks FTSE EPRA/NAREIT Global REIT Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.14% for REET and 0.13% for VNQ.
REET currently has the higher Sharpe Ratio (1.14 vs 0.85), 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.
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