REET vs. VNQ

Last updated Jun 3, 2026

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 4.00%/yr vs 5.22%/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

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Global REIT ETF (REET) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with REET having a 8.23% return and VNQ slightly lower at 7.96%. Over the past 10 years, REET has underperformed VNQ with an annualized return of 4.00%, while VNQ has yielded a comparatively higher 5.22% annualized return.

REET

• 1D: 0.37%
• 1M: -1.47%
• YTD: 8.23%
• 6M: 7.98%
• 1Y: 11.77%
• 3Y*: 9.24%
• 5Y*: 2.30%
• 10Y*: 4.00%

VNQ

• 1D: 0.46%
• 1M: -1.60%
• YTD: 7.96%
• 6M: 7.15%
• 1Y: 9.88%
• 3Y*: 9.19%
• 5Y*: 2.21%
• 10Y*: 5.22%

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

REET vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
REET iShares Global REIT ETF	8.23%	7.97%	2.65%	10.28%	-24.10%	32.43%	-10.48%	24.42%	-5.27%	7.48%
VNQ Vanguard Real Estate ETF	7.96%	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 11, 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.

REET vs. VNQ - Sectors Allocation Comparison

Sectors	REET	VNQ
Real Estate	99.8%	97.3%
Financial Services	0.2%	0.1%
Basic Materials	-	1.1%
Communication Services	-	0.6%
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	0.1%
Healthcare	-	-
Industrials	-	0.0%
Technology	-	0.3%
Utilities	-	-

Return for Risk

REET vs. VNQ — Risk / Return Rank

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

REET

REET Risk / Return Rank: 28
REET Sharpe Ratio Rank: 27
REET Sortino Ratio Rank: 26
REET Omega Ratio Rank: 26
REET Calmar Ratio Rank: 28
REET Martin Ratio Rank: 32

VNQ

VNQ Risk / Return Rank: 23
VNQ Sharpe Ratio Rank: 22
VNQ Sortino Ratio Rank: 21
VNQ Omega Ratio Rank: 21
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.

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.

	REET	VNQ	Difference
Sharpe ratio Return per unit of total volatility	0.98	0.75	+0.22
Sortino ratio Return per unit of downside risk	1.39	1.11	+0.29
Omega ratio Gain probability vs. loss probability	1.18	1.14	+0.04
Calmar ratio Return relative to maximum drawdown	1.34	1.20	+0.14
Martin ratio Return relative to average drawdown	4.85	3.80	+1.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

REET vs. VNQ - Sharpe Ratio Comparison

The current REET Sharpe Ratio is 0.98, which is comparable to the VNQ Sharpe Ratio of 0.75. The chart below compares the historical Sharpe Ratios of REET 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

	REET	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.98	0.75	+0.22
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.14	0.12	+0.02
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.21	0.25	-0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.26	-0.02

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.

Drawdown Indicators

	REET	VNQ	Difference
Max Drawdown Largest 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 Drawdown Current decline from peak	-2.68%	-3.64%	+0.96%
Average Drawdown Average peak-to-trough decline	-9.79%	-13.63%	+3.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.50%	2.64%	-0.14%

Volatility

REET vs. VNQ - Volatility Comparison

iShares Global REIT ETF (REET) and Vanguard Real Estate ETF (VNQ) have volatilities of 3.88% and 3.77%, 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

	REET	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.88%	3.77%	+0.11%
Volatility (6M) Calculated over the trailing 6-month period	8.87%	9.33%	-0.46%
Volatility (1Y) Calculated over the trailing 1-year period	12.10%	13.16%	-1.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.96%	18.80%	-1.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.84%	20.70%	-1.86%

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 3.42%, less than VNQ's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
REET iShares Global REIT ETF	3.42%	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	3.69%	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 REET and VNQ in my portfolio?

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.

Which is riskier, REET or VNQ?

REET has higher volatility (3.88%) compared to VNQ (3.77%). In terms of maximum drawdown, REET dropped -44.59% vs VNQ's -73.07%.

Which ETF is better, REET or VNQ?

On 10-year performance, VNQ leads with 5.22% vs 4.00% for REET. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 3.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, REET or VNQ?

Over the 10-year period, VNQ has performed better with a 5.22% return vs 4.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, REET or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.14% for REET.

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

VNQ has the higher dividend yield at 3.69%, compared with 3.42% for REET.

What is the main difference between REET and VNQ?

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.

Which has better risk-adjusted returns?

REET currently has the higher Sharpe Ratio (0.98 vs 0.75), 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.