USRT vs. VNQ
Compare and contrast key facts about iShares Core U.S. REIT ETF (USRT) and Vanguard Real Estate ETF (VNQ).
USRT and VNQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. USRT is a passively managed fund by iShares that tracks the performance of the FTSE NAREIT Equity REITs 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 USRT 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: USRT or VNQ.
Key characteristics
| USRT | VNQ | |
|---|---|---|
| YTD Return | -7.35% | -9.13% |
| 1Y Return | 2.53% | 0.38% |
| 3Y Return (Ann) | -1.04% | -3.54% |
| 5Y Return (Ann) | 2.50% | 1.99% |
| 10Y Return (Ann) | 5.34% | 4.97% |
| Sharpe Ratio | 0.10 | -0.02 |
| Daily Std Dev | 18.75% | 18.87% |
| Max Drawdown | -69.89% | -73.07% |
| Current Drawdown | -20.44% | -25.04% |
Correlation
The correlation between USRT and VNQ is 0.92, 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
USRT vs. VNQ - Performance Comparison
In the year-to-date period, USRT achieves a -7.35% return, which is significantly higher than VNQ's -9.13% return. Over the past 10 years, USRT has outperformed VNQ with an annualized return of 5.34%, while VNQ has yielded a comparatively lower 4.97% 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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USRT vs. VNQ - Expense Ratio Comparison
USRT has a 0.08% expense ratio, which is lower than VNQ's 0.12% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
USRT vs. VNQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core U.S. REIT ETF (USRT) 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
USRT vs. VNQ - Dividend Comparison
USRT's dividend yield for the trailing twelve months is around 3.39%, less than VNQ's 4.34% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
USRT iShares Core U.S. REIT ETF | 3.39% | 3.18% | 3.46% | 2.27% | 3.12% | 3.34% | 5.66% | 3.44% | 3.98% | 3.59% | 3.46% | 3.84% |
VNQ Vanguard Real Estate ETF | 4.34% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% | 4.32% |
Drawdowns
USRT vs. VNQ - Drawdown Comparison
The maximum USRT drawdown since its inception was -69.89%, roughly equal to the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for USRT and VNQ. For additional features, visit the drawdowns tool.
Volatility
USRT vs. VNQ - Volatility Comparison
iShares Core U.S. REIT ETF (USRT) and Vanguard Real Estate ETF (VNQ) have volatilities of 5.89% and 5.99%, 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.