RERFX vs. VGSNX

Last updated Aug 1, 2026

RERFX (American Funds Real Estate Index Fund Class R-6) and VGSNX (Vanguard Real Estate Index Fund Institutional Shares) are both REIT funds. Over the past 10 years, RERFX returned 8.60%/yr vs 4.78%/yr for VGSNX. Their 0.51 correlation means they have sometimes moved together and sometimes differently. RERFX charges 0.29%/yr vs 0.11%/yr for VGSNX.

Performance

RERFX vs. VGSNX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in American Funds Real Estate Index Fund Class R-6 (RERFX) and Vanguard Real Estate Index Fund Institutional Shares (VGSNX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RERFX achieves a 9.54% return, which is significantly lower than VGSNX's 14.63% return. Over the past 10 years, RERFX has outperformed VGSNX with an annualized return of 8.60%, while VGSNX has yielded a comparatively lower 4.78% annualized return.

RERFX

• 1D: 3.15%
• 1M: -0.79%
• 6M: 3.81%
• YTD: 9.54%
• 1Y: 24.57%
• 3Y*: 13.57%
• 5Y*: 5.05%
• 10Y*: 8.60%
• ALL TIME*: 7.83%

VGSNX

• 1D: -1.22%
• 1M: 1.44%
• 6M: 11.70%
• YTD: 14.63%
• 1Y: 16.19%
• 3Y*: 9.54%
• 5Y*: 2.56%
• 10Y*: 4.78%
• ALL TIME*: 8.13%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
RERFX American Funds Real Estate Index Fund Class R-6	$0.00	$0.00	$0.00
VGSNX Vanguard Real Estate Index Fund Institutional Shares	$0.00	$0.00	$0.00

RERFX vs. VGSNX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RERFX American Funds Real Estate Index Fund Class R-6	9.54%	29.26%	2.96%	16.02%	-22.81%	2.81%	25.20%	27.36%	-17.37%	31.10%
VGSNX Vanguard Real Estate Index Fund Institutional Shares	14.63%	3.21%	3.72%	13.12%	-26.19%	40.46%	-4.76%	28.98%	-5.97%	4.90%

Correlation

The correlation between RERFX and VGSNX is 0.23, which is low. Their historical price movements had little consistent relationship.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.23
Correlation (3Y) Balances recent behavior with more history.	0.40
Correlation (5Y) Shows whether the relationship held over a longer period.	0.50
Correlation (10Y) Provides a long-term view across more market conditions.	0.44
Correlation (All Time) Calculated using the full available price history since Dec 3, 2003	0.51

Over the past year, the correlation between RERFX and VGSNX has dropped to 0.23 - well below their long-term average of 0.51, suggesting their price drivers have been diverging.

Return for Risk

RERFX vs. VGSNX — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

RERFX

RERFX Risk / Return Rank: 44
RERFX Sharpe Ratio Rank: 45
RERFX Sortino Ratio Rank: 44
RERFX Omega Ratio Rank: 45
RERFX Calmar Ratio Rank: 45
RERFX Martin Ratio Rank: 43

VGSNX

VGSNX Risk / Return Rank: 37
VGSNX Sharpe Ratio Rank: 34
VGSNX Sortino Ratio Rank: 34
VGSNX Omega Ratio Rank: 32
VGSNX Calmar Ratio Rank: 46
VGSNX Martin Ratio Rank: 39

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

RERFX vs. VGSNX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for American Funds Real Estate Index Fund Class R-6 (RERFX) and Vanguard Real Estate Index Fund Institutional Shares (VGSNX). 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.

	RERFX	VGSNX	Difference
Sharpe ratio: Return per unit of total volatility	1.31	1.04	+0.27
Sortino ratio: Return per unit of downside risk	1.89	1.52	+0.37
Omega ratio: Gain probability vs. loss probability	1.24	1.19	+0.06
Calmar ratio: Return relative to maximum drawdown	1.82	1.72	+0.09
Martin ratio: Return relative to average drawdown	6.44	5.58	+0.86

RERFX vs. VGSNX - Sharpe Ratio Comparison

The current RERFX Sharpe Ratio is 1.31, which is comparable to the VGSNX Sharpe Ratio of 1.04. The chart below compares the historical Sharpe Ratios of RERFX and VGSNX, 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

RERFX vs. VGSNX - Drawdown Comparison

The maximum RERFX drawdown since its inception was -53.80%, smaller than the maximum VGSNX drawdown of -73.06%. Use the drawdown chart below to compare losses from any high point for RERFX and VGSNX.

Drawdown Indicators

	RERFX	VGSNX	Difference
Max Drawdown Largest peak-to-trough decline	-53.80%	-73.06%	+19.26%
Max Drawdown (1Y) Largest decline over 1 year	-12.53%	-8.34%	-4.19%
Max Drawdown (3Y) Largest decline over 3 years	-15.62%	-17.38%	+1.76%
Max Drawdown (5Y) Largest decline over 5 years	-37.32%	-34.39%	-2.93%
Max Drawdown (10Y) Largest decline over 10 years	-37.32%	-42.30%	+4.98%
Current Drawdown Current decline from peak	-3.53%	-1.40%	-2.13%
Average Drawdown Average peak-to-trough decline	-10.97%	-13.20%	+2.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.53%	2.58%	+0.95%

Volatility

RERFX vs. VGSNX - Volatility Comparison

American Funds Real Estate Index Fund Class R-6 (RERFX) has a higher volatility of 5.64% compared to Vanguard Real Estate Index Fund Institutional Shares (VGSNX) at 4.45%. This indicates that RERFX's price experiences larger fluctuations and is considered to be riskier than VGSNX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RERFX	VGSNX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.64%	4.45%	+1.19%
Volatility (6M) Calculated over the trailing 6-month period	15.24%	10.78%	+4.46%
Volatility (1Y) Calculated over the trailing 1-year period	17.36%	13.93%	+3.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.00%	18.96%	-1.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.89%	20.96%	-4.07%

RERFX vs. VGSNX - Expense Ratio Comparison

RERFX has a 0.29% expense ratio, which is higher than VGSNX's 0.11% expense ratio.

Dividends

RERFX vs. VGSNX - Dividend Comparison

RERFX's dividend yield for the trailing twelve months is around 16.75%, more than VGSNX's 3.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RERFX American Funds Real Estate Index Fund Class R-6	16.75%	13.93%	4.90%	3.90%	1.98%	10.14%	0.38%	3.10%	3.11%	4.94%	1.58%	3.38%
VGSNX Vanguard Real Estate Index Fund Institutional Shares	3.51%	3.94%	3.87%	3.93%	3.94%	2.57%	3.95%	3.40%	4.75%	4.26%	4.84%	3.94%

Frequently Asked Questions

Can I hold both RERFX and VGSNX in my portfolio?

RERFX and VGSNX have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RERFX or VGSNX?

RERFX has higher volatility (5.64%) compared to VGSNX (4.45%). In terms of maximum drawdown, RERFX dropped -53.80% vs VGSNX's -73.06%.

Which has better risk-adjusted returns?

RERFX currently has the higher Sharpe Ratio (1.31 vs 1.04), 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.