SCZ vs. VNQ
SCZ (iShares MSCI EAFE Small-Cap ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - SCZ is a Foreign Small & Mid Cap Equities fund tracking the MSCI EAFE Small Cap Index, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 10 years, SCZ returned 8.71%/yr vs 5.35%/yr for VNQ. A 0.56 correlation means they provide meaningful diversification when combined. SCZ charges 0.40%/yr vs 0.13%/yr for VNQ.
Performance
SCZ vs. VNQ - Performance Comparison
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Returns By Period
In the year-to-date period, SCZ achieves a 7.33% return, which is significantly lower than VNQ's 10.80% return. Over the past 10 years, SCZ has outperformed VNQ with an annualized return of 8.71%, while VNQ has yielded a comparatively lower 5.35% annualized return.
SCZ
- 1D
- 0.04%
- 1M
- -2.28%
- YTD
- 7.33%
- 6M
- 6.77%
- 1Y
- 19.58%
- 3Y*
- 15.94%
- 5Y*
- 4.97%
- 10Y*
- 8.71%
VNQ
- 1D
- -0.87%
- 1M
- 0.25%
- YTD
- 10.80%
- 6M
- 10.46%
- 1Y
- 10.33%
- 3Y*
- 10.98%
- 5Y*
- 2.52%
- 10Y*
- 5.35%
SCZ vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SCZ iShares MSCI EAFE Small-Cap ETF | 7.33% | 32.08% | 1.52% | 12.98% | -21.27% | 10.12% | 11.71% | 24.68% | -17.64% | 32.72% |
VNQ Vanguard Real Estate ETF | 10.80% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
Correlation
The correlation between SCZ and VNQ is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.48 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.52 |
Correlation (All Time) Calculated using the full available price history since Dec 12, 2007 | 0.56 |
The correlation between SCZ and VNQ shifts across timeframes, from 0.48 (1 year) to 0.59 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
SCZ vs. VNQ — Risk / Return Rank
SCZ
VNQ
SCZ vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI EAFE Small-Cap ETF (SCZ) 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.
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.
| SCZ | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.56 | ||
| Sortino ratioReturn per unit of downside risk | +0.80 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.14 | +0.11 |
| Calmar ratioReturn relative to maximum drawdown | 1.72 | 1.24 | +0.48 |
| Martin ratioReturn relative to average drawdown | 6.45 | 3.92 | +2.52 |
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Drawdowns
SCZ vs. VNQ - Drawdown Comparison
The maximum SCZ drawdown since its inception was -61.86%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for SCZ and VNQ.
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Drawdown Indicators
| SCZ | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -61.86% | -73.07% | +11.21% |
Max Drawdown (1Y)Largest decline over 1 year | -11.43% | -8.34% | -3.09% |
Max Drawdown (3Y)Largest decline over 3 years | -15.06% | -17.46% | +2.40% |
Max Drawdown (5Y)Largest decline over 5 years | -36.87% | -34.48% | -2.39% |
Max Drawdown (10Y)Largest decline over 10 years | -41.07% | -42.40% | +1.33% |
Current DrawdownCurrent decline from peak | -3.79% | -1.52% | -2.27% |
Average DrawdownAverage peak-to-trough decline | -13.03% | -13.60% | +0.57% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.04% | 2.66% | +0.38% |
Volatility
SCZ vs. VNQ - Volatility Comparison
iShares MSCI EAFE Small-Cap ETF (SCZ) and Vanguard Real Estate ETF (VNQ) have volatilities of 5.14% and 5.27%, 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.
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Volatility by Period
| SCZ | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.14% | 5.27% | -0.13% |
Volatility (6M)Calculated over the trailing 6-month period | 12.69% | 10.24% | +2.45% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.99% | 13.79% | +1.20% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.81% | 18.87% | -2.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.20% | 20.75% | -3.55% |
SCZ vs. VNQ - Expense Ratio Comparison
SCZ has a 0.40% expense ratio, which is higher than VNQ's 0.13% expense ratio.
Dividends
SCZ vs. VNQ - Dividend Comparison
SCZ's dividend yield for the trailing twelve months is around 3.25%, less than VNQ's 3.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SCZ iShares MSCI EAFE Small-Cap ETF | 3.25% | 3.30% | 3.50% | 2.96% | 1.99% | 2.96% | 1.52% | 3.52% | 2.79% | 2.38% | 2.82% | 2.06% |
VNQ Vanguard Real Estate ETF | 3.59% | 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
SCZ and VNQ have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VNQ has higher volatility (5.27%) compared to SCZ (5.14%). In terms of maximum drawdown, SCZ dropped -61.86% vs VNQ's -73.07%.
On 10-year performance, SCZ leads with 8.71% vs 5.35% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, SCZ has been the lower-risk option at 5.14%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SCZ has performed better with a 8.71% return vs 5.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.40% for SCZ.
VNQ has the higher dividend yield at 3.59%, compared with 3.25% for SCZ.
SCZ is categorized as Foreign Small & Mid Cap Equities, while VNQ is REIT. SCZ tracks MSCI EAFE Small Cap 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: 0.40% for SCZ and 0.13% for VNQ.
SCZ currently has the higher Sharpe Ratio (1.31 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.
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