REIT vs. VNQI

Last updated Jun 3, 2026

REIT (ALPS Active REIT ETF) and VNQI (Vanguard Global ex-U.S. Real Estate ETF) are both REIT funds. REIT is actively managed, while VNQI is passively managed. Over the past 5 years, REIT returned 4.38%/yr vs -1.23%/yr for VNQI. A 0.61 correlation means they provide meaningful diversification when combined. REIT charges 0.68%/yr vs 0.12%/yr for VNQI.

Performance

REIT vs. VNQI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ALPS Active REIT ETF (REIT) and Vanguard Global ex-U.S. Real Estate ETF (VNQI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, REIT achieves a 12.74% return, which is significantly higher than VNQI's -1.07% return.

REIT

• 1D: 0.54%
• 1M: -0.57%
• YTD: 12.74%
• 6M: 12.18%
• 1Y: 13.01%
• 3Y*: 10.36%
• 5Y*: 4.38%
• 10Y*: —

VNQI

• 1D: 0.15%
• 1M: -3.78%
• YTD: -1.07%
• 6M: 0.24%
• 1Y: 6.40%
• 3Y*: 8.47%
• 5Y*: -1.23%
• 10Y*: 2.39%

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

REIT vs. VNQI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
REIT ALPS Active REIT ETF	12.74%	-0.55%	7.11%	13.74%	-21.23%	33.56%
VNQI Vanguard Global ex-U.S. Real Estate ETF	-1.07%	21.38%	-2.22%	6.99%	-22.94%	5.27%

Correlation

The correlation between REIT and VNQI is 0.56, 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	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (All Time) Calculated using the full available price history since Mar 1, 2021	0.61

The correlation between REIT and VNQI has been stable across timeframes, ranging from 0.56 to 0.63 - a consistent structural relationship.

REIT vs. VNQI - Sectors Allocation Comparison

Sectors	REIT	VNQI
Real Estate	100.0%	91.2%
Basic Materials	-	0.3%
Communication Services	-	-
Consumer Cyclical	-	1.1%
Consumer Defensive	-	0.1%
Energy	-	0.3%
Financial Services	-	1.9%
Healthcare	-	0.0%
Industrials	-	0.7%
Technology	-	0.2%
Utilities	-	0.1%

Return for Risk

REIT vs. VNQI — Risk / Return Rank

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

REIT

REIT Risk / Return Rank: 30
REIT Sharpe Ratio Rank: 28
REIT Sortino Ratio Rank: 26
REIT Omega Ratio Rank: 27
REIT Calmar Ratio Rank: 36
REIT Martin Ratio Rank: 35

VNQI

VNQI Risk / Return Rank: 16
VNQI Sharpe Ratio Rank: 16
VNQI Sortino Ratio Rank: 16
VNQI Omega Ratio Rank: 16
VNQI Calmar Ratio Rank: 14
VNQI Martin Ratio Rank: 16

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.

REIT vs. VNQI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ALPS Active REIT ETF (REIT) and Vanguard Global ex-U.S. Real Estate ETF (VNQI). 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.

	REIT	VNQI	Difference
Sharpe ratio Return per unit of total volatility	1.02	0.48	+0.54
Sortino ratio Return per unit of downside risk	1.41	0.77	+0.64
Omega ratio Gain probability vs. loss probability	1.18	1.10	+0.09
Calmar ratio Return relative to maximum drawdown	1.81	0.51	+1.30
Martin ratio Return relative to average drawdown	5.26	1.60	+3.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

REIT vs. VNQI - Sharpe Ratio Comparison

The current REIT Sharpe Ratio is 1.02, which is higher than the VNQI Sharpe Ratio of 0.48. The chart below compares the historical Sharpe Ratios of REIT and VNQI, 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

	REIT	VNQI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.02	0.48	+0.54
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.24	-0.08	+0.32
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.15	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.20	+0.19

Drawdowns

REIT vs. VNQI - Drawdown Comparison

The maximum REIT drawdown since its inception was -29.30%, smaller than the maximum VNQI drawdown of -38.35%. Use the drawdown chart below to compare losses from any high point for REIT and VNQI.

Drawdown Indicators

	REIT	VNQI	Difference
Max Drawdown Largest peak-to-trough decline	-29.30%	-38.35%	+9.05%
Max Drawdown (1Y) Largest decline over 1 year	-7.35%	-14.78%	+7.43%
Max Drawdown (3Y) Largest decline over 3 years	-18.19%	-16.35%	-1.84%
Max Drawdown (5Y) Largest decline over 5 years	-29.30%	-35.75%	+6.45%
Max Drawdown (10Y) Largest decline over 10 years	—	-38.35%	—
Current Drawdown Current decline from peak	-2.70%	-10.66%	+7.96%
Average Drawdown Average peak-to-trough decline	-10.39%	-10.89%	+0.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	4.73%	-2.20%

Volatility

REIT vs. VNQI - Volatility Comparison

The current volatility for ALPS Active REIT ETF (REIT) is 3.88%, while Vanguard Global ex-U.S. Real Estate ETF (VNQI) has a volatility of 4.59%. This indicates that REIT experiences smaller price fluctuations and is considered to be less risky than VNQI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	REIT	VNQI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.88%	4.59%	-0.71%
Volatility (6M) Calculated over the trailing 6-month period	9.08%	11.37%	-2.29%
Volatility (1Y) Calculated over the trailing 1-year period	12.78%	13.40%	-0.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.45%	15.49%	+2.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.38%	16.06%	+2.32%

REIT vs. VNQI - Expense Ratio Comparison

REIT has a 0.68% expense ratio, which is higher than VNQI's 0.12% expense ratio.

Dividends

REIT vs. VNQI - Dividend Comparison

REIT's dividend yield for the trailing twelve months is around 2.80%, less than VNQI's 4.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
REIT ALPS Active REIT ETF	2.80%	3.20%	3.06%	3.13%	2.81%	4.71%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VNQI Vanguard Global ex-U.S. Real Estate ETF	4.75%	4.70%	5.16%	3.74%	0.57%	6.48%	0.93%	7.58%	4.62%	3.86%	5.18%	2.86%

Frequently Asked Questions

Can I hold both REIT and VNQI in my portfolio?

REIT and VNQI have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, REIT or VNQI?

VNQI has higher volatility (4.59%) compared to REIT (3.88%). In terms of maximum drawdown, REIT dropped -29.30% vs VNQI's -38.35%.

Which ETF is better, REIT or VNQI?

On 5-year performance, REIT leads with 4.38% vs -1.23% for VNQI. On fees, VNQI is cheaper at 0.12% per year. On volatility, REIT has been the lower-risk option at 3.88%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, REIT or VNQI?

Over the 5-year period, REIT has performed better with a 4.38% return vs -1.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, REIT or VNQI?

VNQI is cheaper with a 0.12% expense ratio, compared with 0.68% for REIT.

Which ETF pays a higher dividend yield, REIT or VNQI?

VNQI has the higher dividend yield at 4.75%, compared with 2.80% for REIT.

What is the main difference between REIT and VNQI?

They also come from different issuers: ALPS and Vanguard. Their fees differ too: 0.68% for REIT and 0.12% for VNQI.

Which has better risk-adjusted returns?

REIT currently has the higher Sharpe Ratio (1.02 vs 0.48), 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.