RWO vs. VNQ

Last updated Jun 3, 2026

RWO (SPDR Dow Jones Global Real Estate ETF) and VNQ (Vanguard Real Estate ETF) are both REIT funds - RWO tracks the Dow Jones Global Select Real Estate Securities Index while VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 10 years, RWO returned 3.44%/yr vs 5.22%/yr for VNQ. Their correlation of 0.90 suggests significant overlap in exposure. RWO charges 0.50%/yr vs 0.13%/yr for VNQ.

Performance

RWO vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Dow Jones Global Real Estate ETF (RWO) 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 RWO having a 8.10% return and VNQ slightly lower at 7.96%. Over the past 10 years, RWO has underperformed VNQ with an annualized return of 3.44%, while VNQ has yielded a comparatively higher 5.22% annualized return.

RWO

• 1D: 0.37%
• 1M: -1.77%
• YTD: 8.10%
• 6M: 7.51%
• 1Y: 12.29%
• 3Y*: 9.55%
• 5Y*: 2.01%
• 10Y*: 3.44%

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)

RWO vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
RWO SPDR Dow Jones Global Real Estate ETF	8.10%	8.87%	1.76%	10.91%	-25.11%	31.03%	-10.44%	21.17%	-6.04%	7.80%
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 RWO and VNQ is 0.91, 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	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (10Y) Calculated over the trailing 10-year period	0.94
Correlation (All Time) Calculated using the full available price history since May 23, 2008	0.90

The correlation between RWO and VNQ has been stable across timeframes, ranging from 0.90 to 0.95 - a consistent structural relationship.

RWO vs. VNQ - Sectors Allocation Comparison

Sectors	RWO	VNQ
Real Estate	89.3%	97.3%
Consumer Cyclical	0.8%	-
Financial Services	0.8%	0.1%
Technology	0.7%	0.3%
Healthcare	0.4%	-
Energy	0.3%	0.1%
Industrials	0.2%	0.0%
Utilities	0.0%	-
Basic Materials	-	1.1%
Communication Services	-	0.6%
Consumer Defensive	-	-

Return for Risk

RWO vs. VNQ — Risk / Return Rank

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

RWO

RWO Risk / Return Rank: 28
RWO Sharpe Ratio Rank: 27
RWO Sortino Ratio Rank: 26
RWO Omega Ratio Rank: 26
RWO Calmar Ratio Rank: 27
RWO Martin Ratio Rank: 34

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.

RWO vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Dow Jones Global Real Estate ETF (RWO) 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.

	RWO	VNQ	Difference
Sharpe ratio Return per unit of total volatility	0.97	0.75	+0.22
Sortino ratio Return per unit of downside risk	1.39	1.11	+0.28
Omega ratio Gain probability vs. loss probability	1.17	1.14	+0.04
Calmar ratio Return relative to maximum drawdown	1.32	1.20	+0.12
Martin ratio Return relative to average drawdown	5.16	3.80	+1.36
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RWO vs. VNQ - Sharpe Ratio Comparison

The current RWO Sharpe Ratio is 0.97, which is comparable to the VNQ Sharpe Ratio of 0.75. The chart below compares the historical Sharpe Ratios of RWO 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

	RWO	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.97	0.75	+0.22
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.12	0.12	0.00
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.19	0.25	-0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.16	0.26	-0.10

Drawdowns

RWO vs. VNQ - Drawdown Comparison

The maximum RWO drawdown since its inception was -67.69%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for RWO and VNQ.

Drawdown Indicators

	RWO	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-67.69%	-73.07%	+5.38%
Max Drawdown (1Y) Largest decline over 1 year	-9.51%	-8.34%	-1.17%
Max Drawdown (3Y) Largest decline over 3 years	-17.66%	-17.46%	-0.20%
Max Drawdown (5Y) Largest decline over 5 years	-32.85%	-34.48%	+1.63%
Max Drawdown (10Y) Largest decline over 10 years	-43.27%	-42.40%	-0.87%
Current Drawdown Current decline from peak	-3.09%	-3.64%	+0.55%
Average Drawdown Average peak-to-trough decline	-12.68%	-13.63%	+0.95%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.44%	2.64%	-0.20%

Volatility

RWO vs. VNQ - Volatility Comparison

SPDR Dow Jones Global Real Estate ETF (RWO) has a higher volatility of 4.01% compared to Vanguard Real Estate ETF (VNQ) at 3.77%. This indicates that RWO'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.

Volatility by Period

	RWO	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.01%	3.77%	+0.24%
Volatility (6M) Calculated over the trailing 6-month period	9.44%	9.33%	+0.11%
Volatility (1Y) Calculated over the trailing 1-year period	12.69%	13.16%	-0.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.04%	18.80%	-1.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.21%	20.70%	-2.49%

RWO vs. VNQ - Expense Ratio Comparison

RWO has a 0.50% expense ratio, which is higher than VNQ's 0.13% expense ratio.

Dividends

RWO vs. VNQ - Dividend Comparison

RWO's dividend yield for the trailing twelve months is around 3.34%, less than VNQ's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
RWO SPDR Dow Jones Global Real Estate ETF	3.34%	3.62%	3.68%	3.53%	3.69%	2.79%	3.25%	3.97%	3.90%	3.26%	3.77%	2.97%
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 RWO and VNQ in my portfolio?

With a correlation of 0.91, RWO 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, RWO or VNQ?

RWO has higher volatility (4.01%) compared to VNQ (3.77%). In terms of maximum drawdown, RWO dropped -67.69% vs VNQ's -73.07%.

Which ETF is better, RWO or VNQ?

On 10-year performance, VNQ leads with 5.22% vs 3.44% for RWO. 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, RWO or VNQ?

Over the 10-year period, VNQ has performed better with a 5.22% return vs 3.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RWO or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.50% for RWO.

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

VNQ has the higher dividend yield at 3.69%, compared with 3.34% for RWO.

What is the main difference between RWO and VNQ?

RWO tracks Dow Jones Global Select Real Estate Securities Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.50% for RWO and 0.13% for VNQ.

Which has better risk-adjusted returns?

RWO currently has the higher Sharpe Ratio (0.97 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.