VGT vs. VNQ

Last updated Jun 9, 2026

VGT (Vanguard Information Technology ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 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, VGT returned 25.14%/yr vs 5.30%/yr for VNQ. A 0.52 correlation means they provide meaningful diversification when combined. VGT charges 0.09%/yr vs 0.13%/yr for VNQ.

Performance

VGT vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Information Technology ETF (VGT) 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, VGT achieves a 24.57% return, which is significantly higher than VNQ's 9.04% return. Over the past 10 years, VGT has outperformed VNQ with an annualized return of 25.14%, while VNQ has yielded a comparatively lower 5.30% annualized return.

VGT

• 1D: 1.71%
• 1M: 4.28%
• YTD: 24.57%
• 6M: 21.33%
• 1Y: 50.38%
• 3Y*: 31.24%
• 5Y*: 20.82%
• 10Y*: 25.14%

VNQ

• 1D: -1.36%
• 1M: -1.19%
• YTD: 9.04%
• 6M: 9.17%
• 1Y: 10.45%
• 3Y*: 9.24%
• 5Y*: 1.97%
• 10Y*: 5.30%

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

VGT vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGT Vanguard Information Technology ETF	24.57%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	2.46%	37.08%
VNQ Vanguard Real Estate ETF	9.04%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between VGT and VNQ is 0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.09
Correlation (3Y) Calculated over the trailing 3-year period	0.25
Correlation (5Y) Calculated over the trailing 5-year period	0.43
Correlation (10Y) Calculated over the trailing 10-year period	0.42
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004	0.52

Over the past year, the correlation between VGT and VNQ has dropped to 0.09 - well below their long-term average of 0.52, suggesting their price drivers have been diverging.

VGT vs. VNQ - Sectors Allocation Comparison

Sectors	VGT	VNQ
Technology	98.5%	0.3%
Communication Services	0.5%	0.6%
Financial Services	0.5%	0.1%
Industrials	0.4%	0.0%
Energy	0.3%	0.1%
Consumer Cyclical	0.1%	-
Basic Materials	0.0%	1.1%
Healthcare	0.0%	-
Consumer Defensive	-	-
Real Estate	-	97.3%
Utilities	-	-

Return for Risk

VGT vs. VNQ — Risk / Return Rank

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

VGT

VGT Risk / Return Rank: 71
VGT Sharpe Ratio Rank: 81
VGT Sortino Ratio Rank: 71
VGT Omega Ratio Rank: 73
VGT Calmar Ratio Rank: 68
VGT Martin Ratio Rank: 60

VNQ

VNQ Risk / Return Rank: 26
VNQ Sharpe Ratio Rank: 24
VNQ Sortino Ratio Rank: 23
VNQ Omega Ratio Rank: 23
VNQ Calmar Ratio Rank: 28
VNQ Martin Ratio Rank: 30

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.

VGT vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Information Technology ETF (VGT) 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.

	VGT	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	2.35	0.79	+1.56
Sortino ratio: Return per unit of downside risk	2.89	1.15	+1.74
Omega ratio: Gain probability vs. loss probability	1.39	1.14	+0.25
Calmar ratio: Return relative to maximum drawdown	3.09	1.26	+1.83
Martin ratio: Return relative to average drawdown	9.77	3.96	+5.81
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VGT vs. VNQ - Sharpe Ratio Comparison

The current VGT Sharpe Ratio is 2.35, which is higher than the VNQ Sharpe Ratio of 0.79. The chart below compares the historical Sharpe Ratios of VGT 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

	VGT	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.35	0.79	+1.56
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.83	0.11	+0.72
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	1.02	0.26	+0.77
Sharpe Ratio (All Time) Calculated using the full available price history	0.67	0.27	+0.40

Drawdowns

VGT vs. VNQ - Drawdown Comparison

The maximum VGT drawdown since its inception was -54.63%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for VGT and VNQ.

Drawdown Indicators

	VGT	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-54.63%	-73.07%	+18.44%
Max Drawdown (1Y) Largest decline over 1 year	-16.40%	-8.34%	-8.06%
Max Drawdown (3Y) Largest decline over 3 years	-27.23%	-17.46%	-9.77%
Max Drawdown (5Y) Largest decline over 5 years	-35.07%	-34.48%	-0.59%
Max Drawdown (10Y) Largest decline over 10 years	-35.07%	-42.40%	+7.33%
Current Drawdown Current decline from peak	-6.77%	-2.67%	-4.10%
Average Drawdown Average peak-to-trough decline	-7.95%	-13.62%	+5.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.17%	2.65%	+2.52%

Volatility

VGT vs. VNQ - Volatility Comparison

Vanguard Information Technology ETF (VGT) has a higher volatility of 9.39% compared to Vanguard Real Estate ETF (VNQ) at 4.13%. This indicates that VGT'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

	VGT	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.39%	4.13%	+5.26%
Volatility (6M) Calculated over the trailing 6-month period	17.44%	9.53%	+7.91%
Volatility (1Y) Calculated over the trailing 1-year period	21.58%	13.38%	+8.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.33%	18.82%	+6.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.69%	20.71%	+3.98%

VGT vs. VNQ - Expense Ratio Comparison

VGT has a 0.09% expense ratio, which is lower than VNQ's 0.13% 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%.

Dividends

VGT vs. VNQ - Dividend Comparison

VGT's dividend yield for the trailing twelve months is around 0.33%, less than VNQ's 3.65% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VGT Vanguard Information Technology ETF	0.33%	0.40%	0.60%	0.65%	0.91%	0.64%	0.82%	1.11%	1.29%	0.99%	1.31%	1.28%
VNQ Vanguard Real Estate ETF	3.65%	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 VGT and VNQ in my portfolio?

VGT and VNQ have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGT or VNQ?

VGT has higher volatility (9.39%) compared to VNQ (4.13%). In terms of maximum drawdown, VGT dropped -54.63% vs VNQ's -73.07%.

Which ETF is better, VGT or VNQ?

On 10-year performance, VGT leads with 25.14% vs 5.30% for VNQ. On fees, VGT is cheaper at 0.09% per year. On volatility, VNQ has been the lower-risk option at 4.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VGT or VNQ?

Over the 10-year period, VGT has performed better with a 25.14% return vs 5.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VGT or VNQ?

VGT is cheaper with a 0.09% expense ratio, compared with 0.13% for VNQ.

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

VNQ has the higher dividend yield at 3.65%, compared with 0.33% for VGT.

What is the main difference between VGT and VNQ?

VGT is categorized as Technology Equities, while VNQ is REIT. VGT tracks MSCI USA IMI Information Technology 25/50 Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. Their fees differ too: 0.09% for VGT and 0.13% for VNQ.

Which has better risk-adjusted returns?

VGT currently has the higher Sharpe Ratio (2.35 vs 0.79), 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.