USRD vs. VNQ

Last updated Jun 12, 2026

USRD (Themes US R&D Champions ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - USRD is a Large Cap Blend Equities fund tracking the Solactive US R&D Champions 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 year, USRD returned 21.33% vs 12.43% for VNQ. At a 0.39 correlation, their price movements are largely independent. USRD charges 0.29%/yr vs 0.13%/yr for VNQ.

Performance

USRD vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Themes US R&D Champions ETF (USRD) 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, USRD achieves a 12.31% return, which is significantly higher than VNQ's 11.49% return.

USRD

• 1D: 1.76%
• 1M: 4.18%
• YTD: 12.31%
• 6M: 9.99%
• 1Y: 21.33%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VNQ

• 1D: -0.07%
• 1M: 0.95%
• YTD: 11.49%
• 6M: 11.16%
• 1Y: 12.43%
• 3Y*: 10.04%
• 5Y*: 2.36%
• 10Y*: 5.53%

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

USRD vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
USRD Themes US R&D Champions ETF	12.31%	12.44%	15.53%	5.32%
VNQ Vanguard Real Estate ETF	11.49%	3.24%	4.81%	6.72%

Correlation

The correlation between USRD and VNQ is 0.26, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.26
Correlation (All Time) Calculated using the full available price history since Dec 13, 2023	0.39

The correlation between USRD and VNQ shifts across timeframes, from 0.26 (1 year) to 0.39 (all time), reflecting how their relationship changes across market environments.

USRD vs. VNQ - Sectors Allocation Comparison

Sectors	USRD	VNQ
Technology	58.5%	0.3%
Healthcare	14.4%	-
Industrials	9.3%	0.0%
Communication Services	7.2%	0.6%
Consumer Cyclical	5.4%	-
Basic Materials	2.1%	1.1%
Consumer Defensive	1.9%	-
Real Estate	1.1%	97.3%
Energy	-	0.1%
Financial Services	-	0.1%
Utilities	-	-

Return for Risk

USRD vs. VNQ — Risk / Return Rank

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

USRD

USRD Risk / Return Rank: 37
USRD Sharpe Ratio Rank: 39
USRD Sortino Ratio Rank: 37
USRD Omega Ratio Rank: 37
USRD Calmar Ratio Rank: 37
USRD Martin Ratio Rank: 36

VNQ

VNQ Risk / Return Rank: 32
VNQ Sharpe Ratio Rank: 31
VNQ Sortino Ratio Rank: 29
VNQ Omega Ratio Rank: 29
VNQ Calmar Ratio Rank: 36
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.

USRD vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes US R&D Champions ETF (USRD) 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.

	USRD	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	1.21	0.92	+0.29
Sortino ratio: Return per unit of downside risk	1.72	1.35	+0.37
Omega ratio: Gain probability vs. loss probability	1.22	1.17	+0.05
Calmar ratio: Return relative to maximum drawdown	1.59	1.50	+0.09
Martin ratio: Return relative to average drawdown	4.81	4.71	+0.10

USRD vs. VNQ - Sharpe Ratio Comparison

The current USRD Sharpe Ratio is 1.21, which is higher than the VNQ Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of USRD 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

USRD vs. VNQ - Drawdown Comparison

The maximum USRD drawdown since its inception was -23.79%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for USRD and VNQ.

Drawdown Indicators

	USRD	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-23.79%	-73.07%	+49.28%
Max Drawdown (1Y) Largest decline over 1 year	-13.49%	-8.34%	-5.15%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.46%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-34.48%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-42.40%	—
Current Drawdown Current decline from peak	-7.42%	-0.49%	-6.93%
Average Drawdown Average peak-to-trough decline	-3.71%	-13.61%	+9.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.45%	2.65%	+1.80%

Volatility

USRD vs. VNQ - Volatility Comparison

Themes US R&D Champions ETF (USRD) has a higher volatility of 8.08% compared to Vanguard Real Estate ETF (VNQ) at 4.74%. This indicates that USRD'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

	USRD	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.08%	4.74%	+3.34%
Volatility (6M) Calculated over the trailing 6-month period	14.50%	9.74%	+4.76%
Volatility (1Y) Calculated over the trailing 1-year period	17.70%	13.52%	+4.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.49%	18.85%	+0.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.49%	20.72%	-1.23%

USRD vs. VNQ - Expense Ratio Comparison

USRD has a 0.29% expense ratio, which is higher than VNQ's 0.13% expense ratio.

Dividends

USRD vs. VNQ - Dividend Comparison

USRD's dividend yield for the trailing twelve months is around 0.38%, less than VNQ's 3.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
USRD Themes US R&D Champions ETF	0.38%	0.42%	2.44%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VNQ Vanguard Real Estate ETF	3.57%	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 USRD and VNQ in my portfolio?

USRD and VNQ have a correlation of 0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USRD or VNQ?

USRD has higher volatility (8.08%) compared to VNQ (4.74%). In terms of maximum drawdown, USRD dropped -23.79% vs VNQ's -73.07%.

Which ETF is better, USRD or VNQ?

On 1-year performance, USRD leads with 21.33% vs 12.43% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 4.74%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USRD or VNQ?

Over the 1-year period, USRD has performed better with a 21.33% return vs 12.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USRD or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.29% for USRD.

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

VNQ has the higher dividend yield at 3.57%, compared with 0.38% for USRD.

What is the main difference between USRD and VNQ?

USRD is categorized as Large Cap Blend Equities, while VNQ is REIT. USRD tracks Solactive US R&D Champions Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: Themes and Vanguard. Their fees differ too: 0.29% for USRD and 0.13% for VNQ.

Which has better risk-adjusted returns?

USRD currently has the higher Sharpe Ratio (1.21 vs 0.92), 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.