REZ vs. VNQ
Compare and contrast key facts about iShares Residential Real Estate ETF (REZ) and Vanguard Real Estate ETF (VNQ).
REZ and VNQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. REZ is a passively managed fund by iShares that tracks the performance of the FTSE NAREIT All Residential Capped Index. It was launched on May 4, 2007. VNQ is a passively managed fund by Vanguard that tracks the performance of the MSCI US REIT Index. It was launched on Sep 23, 2004. Both REZ and VNQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: REZ or VNQ.
Key characteristics
| REZ | VNQ | |
|---|---|---|
| YTD Return | 20.55% | 10.24% |
| 1Y Return | 34.01% | 24.63% |
| 3Y Return (Ann) | 0.93% | -0.98% |
| 5Y Return (Ann) | 5.50% | 4.31% |
| 10Y Return (Ann) | 7.86% | 6.08% |
| Sharpe Ratio | 2.36 | 1.85 |
| Sortino Ratio | 3.34 | 2.65 |
| Omega Ratio | 1.41 | 1.33 |
| Calmar Ratio | 1.37 | 1.17 |
| Martin Ratio | 10.93 | 7.06 |
| Ulcer Index | 3.74% | 4.47% |
| Daily Std Dev | 17.29% | 17.09% |
| Max Drawdown | -66.84% | -73.07% |
| Current Drawdown | -5.31% | -9.06% |
Correlation
The correlation between REZ and VNQ is 0.90, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
REZ vs. VNQ - Performance Comparison
In the year-to-date period, REZ achieves a 20.55% return, which is significantly higher than VNQ's 10.24% return. Over the past 10 years, REZ has outperformed VNQ with an annualized return of 7.86%, while VNQ has yielded a comparatively lower 6.08% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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REZ vs. VNQ - Expense Ratio Comparison
REZ has a 0.48% expense ratio, which is higher than VNQ's 0.12% expense ratio.
Risk-Adjusted Performance
REZ vs. VNQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Residential Real Estate ETF (REZ) 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.
Dividends
REZ vs. VNQ - Dividend Comparison
REZ's dividend yield for the trailing twelve months is around 2.19%, less than VNQ's 3.85% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
REZ iShares Residential Real Estate ETF | 2.19% | 2.94% | 3.37% | 1.81% | 3.17% | 2.90% | 3.63% | 3.57% | 5.54% | 3.18% | 3.13% | 3.92% |
VNQ Vanguard Real Estate ETF | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% | 4.32% |
Drawdowns
REZ vs. VNQ - Drawdown Comparison
The maximum REZ drawdown since its inception was -66.84%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for REZ and VNQ. For additional features, visit the drawdowns tool.
Volatility
REZ vs. VNQ - Volatility Comparison
iShares Residential Real Estate ETF (REZ) has a higher volatility of 5.79% compared to Vanguard Real Estate ETF (VNQ) at 5.25%. This indicates that REZ's price experiences larger fluctuations and is considered to be riskier than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.