URTH vs. VNQ

Last updated Jun 13, 2026

URTH (iShares MSCI World ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - URTH is a Global Equities fund tracking the MSCI World Index (Net), 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, URTH returned 13.38%/yr vs 5.65%/yr for VNQ. A 0.52 correlation means they provide meaningful diversification when combined. URTH charges 0.24%/yr vs 0.13%/yr for VNQ.

Performance

URTH vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI World ETF (URTH) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, URTH achieves a 8.91% return, which is significantly lower than VNQ's 12.51% return. Over the past 10 years, URTH has outperformed VNQ with an annualized return of 13.38%, while VNQ has yielded a comparatively lower 5.65% annualized return.

URTH

• 1D: 0.39%
• 1M: -0.21%
• YTD: 8.91%
• 6M: 9.60%
• 1Y: 24.56%
• 3Y*: 19.60%
• 5Y*: 11.45%
• 10Y*: 13.38%

VNQ

• 1D: 0.92%
• 1M: 3.35%
• YTD: 12.51%
• 6M: 12.32%
• 1Y: 14.02%
• 3Y*: 10.14%
• 5Y*: 2.55%
• 10Y*: 5.65%

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

URTH vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
URTH iShares MSCI World ETF	8.91%	21.36%	18.66%	23.95%	-17.97%	22.27%	15.78%	28.15%	-8.56%	22.95%
VNQ Vanguard Real Estate ETF	12.51%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between URTH and VNQ is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.39
Correlation (3Y) Calculated over the trailing 3-year period	0.52
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.58
Correlation (All Time) Calculated using the full available price history since Jan 12, 2012	0.52

The correlation between URTH and VNQ shifts across timeframes, from 0.39 (1 year) to 0.63 (5 years), reflecting how their relationship changes across market environments.

URTH vs. VNQ - Sectors Allocation Comparison

Sectors	URTH	VNQ
Technology	28.3%	0.3%
Financial Services	15.8%	0.1%
Industrials	11.3%	0.0%
Consumer Cyclical	9.3%	-
Communication Services	9.3%	0.6%
Healthcare	8.8%	-
Consumer Defensive	5.2%	-
Energy	4.2%	0.1%
Basic Materials	3.3%	1.1%
Utilities	2.7%	-
Real Estate	1.9%	97.3%

Return for Risk

URTH vs. VNQ — Risk / Return Rank

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

URTH

URTH Risk / Return Rank: 64
URTH Sharpe Ratio Rank: 65
URTH Sortino Ratio Rank: 64
URTH Omega Ratio Rank: 63
URTH Calmar Ratio Rank: 59
URTH Martin Ratio Rank: 71

VNQ

VNQ Risk / Return Rank: 32
VNQ Sharpe Ratio Rank: 30
VNQ Sortino Ratio Rank: 28
VNQ Omega Ratio Rank: 28
VNQ Calmar Ratio Rank: 35
VNQ Martin Ratio Rank: 36

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.

URTH vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI World ETF (URTH) 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.

	URTH	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	1.85	0.96	+0.89
Sortino ratio: Return per unit of downside risk	2.55	1.39	+1.16
Omega ratio: Gain probability vs. loss probability	1.33	1.17	+0.16
Calmar ratio: Return relative to maximum drawdown	2.56	1.56	+1.00
Martin ratio: Return relative to average drawdown	11.37	4.90	+6.47

URTH vs. VNQ - Sharpe Ratio Comparison

The current URTH Sharpe Ratio is 1.85, which is higher than the VNQ Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of URTH 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.

Drawdowns

URTH vs. VNQ - Drawdown Comparison

The maximum URTH drawdown since its inception was -34.01%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for URTH and VNQ.

Drawdown Indicators

	URTH	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-34.01%	-73.07%	+39.06%
Max Drawdown (1Y) Largest decline over 1 year	-9.06%	-8.34%	-0.72%
Max Drawdown (3Y) Largest decline over 3 years	-16.94%	-17.46%	+0.52%
Max Drawdown (5Y) Largest decline over 5 years	-26.05%	-34.48%	+8.43%
Max Drawdown (10Y) Largest decline over 10 years	-34.01%	-42.40%	+8.39%
Current Drawdown Current decline from peak	-1.87%	0.00%	-1.87%
Average Drawdown Average peak-to-trough decline	-4.37%	-13.61%	+9.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.04%	2.65%	-0.61%

Volatility

URTH vs. VNQ - Volatility Comparison

iShares MSCI World ETF (URTH) and Vanguard Real Estate ETF (VNQ) have volatilities of 4.55% and 4.72%, 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.

Volatility by Period

	URTH	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.55%	4.72%	-0.17%
Volatility (6M) Calculated over the trailing 6-month period	10.11%	9.77%	+0.34%
Volatility (1Y) Calculated over the trailing 1-year period	12.57%	13.54%	-0.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.26%	18.84%	-2.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.29%	20.72%	-3.43%

URTH vs. VNQ - Expense Ratio Comparison

URTH has a 0.24% expense ratio, which is higher than VNQ's 0.13% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

URTH vs. VNQ - Dividend Comparison

URTH's dividend yield for the trailing twelve months is around 1.36%, less than VNQ's 3.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
URTH iShares MSCI World ETF	1.36%	1.48%	1.47%	1.70%	1.68%	1.50%	1.52%	2.16%	2.30%	1.88%	2.15%	2.35%
VNQ Vanguard Real Estate ETF	3.54%	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 URTH and VNQ in my portfolio?

URTH and VNQ have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, URTH or VNQ?

VNQ has higher volatility (4.72%) compared to URTH (4.55%). In terms of maximum drawdown, URTH dropped -34.01% vs VNQ's -73.07%.

Which ETF is better, URTH or VNQ?

On 10-year performance, URTH leads with 13.38% vs 5.65% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, URTH has been the lower-risk option at 4.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, URTH or VNQ?

Over the 10-year period, URTH has performed better with a 13.38% return vs 5.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, URTH or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.24% for URTH.

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

VNQ has the higher dividend yield at 3.54%, compared with 1.36% for URTH.

What is the main difference between URTH and VNQ?

URTH is categorized as Global Equities, while VNQ is REIT. URTH tracks MSCI World Index (Net), 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: 0.24% for URTH and 0.13% for VNQ.

Which has better risk-adjusted returns?

URTH currently has the higher Sharpe Ratio (1.85 vs 0.96), 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.