VHYG.L vs. VNQ

Last updated Jun 12, 2026

VHYG.L (Vanguard FTSE All-World High Dividend Yield UCITS ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - VHYG.L is a Global Equities fund tracking the MSCI World High Dividend Yield NR USD, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 5 years, VHYG.L returned 11.55%/yr vs 3.43%/yr for VNQ. At a 0.35 correlation, their price movements are largely independent. VHYG.L charges 0.29%/yr vs 0.13%/yr for VNQ.

Performance

VHYG.L vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in Vanguard FTSE All-World High Dividend Yield UCITS ETF (VHYG.L) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

VHYG.L is traded in GBP, while VNQ is traded in USD. To make them comparable, the VNQ values have been converted to GBP using the latest available exchange rates.

Returns By Period

In the year-to-date period, VHYG.L achieves a 11.13% return, which is significantly lower than VNQ's 12.09% return.

VHYG.L

• 1D: 0.51%
• 1M: 2.60%
• YTD: 11.13%
• 6M: 12.36%
• 1Y: 26.50%
• 3Y*: 15.70%
• 5Y*: 11.55%
• 10Y*: —

VNQ

• 1D: -0.28%
• 1M: 1.99%
• YTD: 12.09%
• 6M: 11.03%
• 1Y: 13.69%
• 3Y*: 7.56%
• 5Y*: 3.43%
• 10Y*: 6.15%

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

VHYG.L vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VHYG.L Vanguard FTSE All-World High Dividend Yield UCITS ETF	11.13%	18.36%	10.98%	5.02%	6.20%	19.28%	-3.61%	-18.20%
VNQ Vanguard Real Estate ETF	12.09%	-4.11%	6.64%	6.26%	-17.48%	41.87%	-7.41%	-5.30%

Correlation

The correlation between VHYG.L and VNQ is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (5Y) Calculated over the trailing 5-year period	0.33
Correlation (All Time) Calculated using the full available price history since Sep 24, 2019	0.36

VHYG.L vs. VNQ - Sectors Allocation Comparison

Sectors	VHYG.L	VNQ
Financial Services	28.6%	0.1%
Industrials	12.3%	0.0%
Healthcare	11.2%	-
Energy	9.4%	0.1%
Consumer Defensive	8.7%	-
Technology	7.7%	0.3%
Consumer Cyclical	7.0%	-
Utilities	5.7%	-
Basic Materials	5.1%	1.1%
Communication Services	3.5%	0.6%
Real Estate	0.9%	97.3%

Return for Risk

VHYG.L vs. VNQ — Risk / Return Rank

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

VHYG.L

VHYG.L Risk / Return Rank: 89
VHYG.L Sharpe Ratio Rank: 93
VHYG.L Sortino Ratio Rank: 92
VHYG.L Omega Ratio Rank: 92
VHYG.L Calmar Ratio Rank: 84
VHYG.L Martin Ratio Rank: 82

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.

VHYG.L vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE All-World High Dividend Yield UCITS ETF (VHYG.L) 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.

	VHYG.L	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	2.88	1.05	+1.83
Sortino ratio: Return per unit of downside risk	3.87	1.53	+2.34
Omega ratio: Gain probability vs. loss probability	1.53	1.19	+0.34
Calmar ratio: Return relative to maximum drawdown	3.81	1.85	+1.96
Martin ratio: Return relative to average drawdown	13.66	5.21	+8.45

VHYG.L vs. VNQ - Sharpe Ratio Comparison

The current VHYG.L Sharpe Ratio is 2.88, which is higher than the VNQ Sharpe Ratio of 1.05. The chart below compares the historical Sharpe Ratios of VHYG.L 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

VHYG.L vs. VNQ - Drawdown Comparison

The maximum VHYG.L drawdown since its inception was -39.80%, smaller than the maximum VNQ drawdown of -57.05%. Use the drawdown chart below to compare losses from any high point for VHYG.L and VNQ.

Drawdown Indicators

	VHYG.L	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-39.80%	-57.05%	+17.25%
Max Drawdown (1Y) Largest decline over 1 year	-6.93%	-7.44%	+0.51%
Max Drawdown (3Y) Largest decline over 3 years	-19.90%	-18.24%	-1.66%
Max Drawdown (5Y) Largest decline over 5 years	-19.90%	-28.76%	+8.86%
Max Drawdown (10Y) Largest decline over 10 years	—	-35.51%	—
Current Drawdown Current decline from peak	-0.43%	-2.01%	+1.58%
Average Drawdown Average peak-to-trough decline	-9.84%	-10.77%	+0.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.93%	2.63%	-0.70%

Volatility

VHYG.L vs. VNQ - Volatility Comparison

The current volatility for Vanguard FTSE All-World High Dividend Yield UCITS ETF (VHYG.L) is 2.00%, while Vanguard Real Estate ETF (VNQ) has a volatility of 4.36%. This indicates that VHYG.L experiences smaller price fluctuations and is considered to be less risky than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VHYG.L	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.00%	4.36%	-2.36%
Volatility (6M) Calculated over the trailing 6-month period	7.03%	9.87%	-2.84%
Volatility (1Y) Calculated over the trailing 1-year period	9.17%	13.16%	-3.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.57%	17.63%	-0.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.75%	20.62%	-0.87%

VHYG.L vs. VNQ - Expense Ratio Comparison

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

Dividends

VHYG.L vs. VNQ - Dividend Comparison

VHYG.L has not paid dividends to shareholders, while VNQ's dividend yield for the trailing twelve months is around 3.57%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VHYG.L Vanguard FTSE All-World High Dividend Yield UCITS ETF	0.00%	0.00%	0.00%	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 VHYG.L and VNQ in my portfolio?

VHYG.L and VNQ have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VHYG.L or VNQ?

On fees, VNQ is cheaper at 0.13% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VHYG.L or VNQ?

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

What is the main difference between VHYG.L and VNQ?

VHYG.L is categorized as Global Equities, while VNQ is REIT. VHYG.L tracks MSCI World High Dividend Yield NR USD, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. Their fees differ too: 0.29% for VHYG.L and 0.13% for VNQ.