VIGI vs. VNQ

Last updated Jun 12, 2026

VIGI (Vanguard International Dividend Appreciation ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - VIGI is a Dividend fund tracking the S&P Global Ex-U.S. Dividend Growers 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, VIGI returned 8.21%/yr vs 5.53%/yr for VNQ. A 0.53 correlation means they provide meaningful diversification when combined. VIGI charges 0.15%/yr vs 0.13%/yr for VNQ.

Performance

VIGI vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard International Dividend Appreciation ETF (VIGI) 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, VIGI achieves a 3.33% return, which is significantly lower than VNQ's 11.49% return. Over the past 10 years, VIGI has outperformed VNQ with an annualized return of 8.21%, while VNQ has yielded a comparatively lower 5.53% annualized return.

VIGI

• 1D: 1.67%
• 1M: 1.11%
• YTD: 3.33%
• 6M: 3.83%
• 1Y: 6.32%
• 3Y*: 9.88%
• 5Y*: 4.32%
• 10Y*: 8.21%

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)

VIGI vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIGI Vanguard International Dividend Appreciation ETF	3.33%	16.88%	2.73%	16.30%	-16.79%	12.51%	14.66%	27.53%	-11.50%	27.97%
VNQ Vanguard Real Estate ETF	11.49%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between VIGI and VNQ is 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.61
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Mar 2, 2016	0.53

The correlation between VIGI and VNQ has been stable across timeframes, ranging from 0.53 to 0.61 - a consistent structural relationship.

VIGI vs. VNQ - Sectors Allocation Comparison

Sectors	VIGI	VNQ
Financial Services	29.0%	0.1%
Industrials	17.1%	0.0%
Healthcare	14.6%	-
Technology	11.5%	0.3%
Consumer Defensive	9.7%	-
Utilities	4.8%	-
Basic Materials	4.1%	1.1%
Consumer Cyclical	3.1%	-
Energy	2.8%	0.1%
Communication Services	1.3%	0.6%
Real Estate	1.3%	97.3%

Return for Risk

VIGI vs. VNQ — Risk / Return Rank

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

VIGI

VIGI Risk / Return Rank: 19
VIGI Sharpe Ratio Rank: 19
VIGI Sortino Ratio Rank: 18
VIGI Omega Ratio Rank: 18
VIGI Calmar Ratio Rank: 18
VIGI Martin Ratio Rank: 21

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.

VIGI vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard International Dividend Appreciation ETF (VIGI) 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.

	VIGI	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	0.48	0.92	-0.44
Sortino ratio: Return per unit of downside risk	0.77	1.35	-0.58
Omega ratio: Gain probability vs. loss probability	1.09	1.17	-0.08
Calmar ratio: Return relative to maximum drawdown	0.60	1.50	-0.90
Martin ratio: Return relative to average drawdown	2.08	4.71	-2.63

VIGI vs. VNQ - Sharpe Ratio Comparison

The current VIGI Sharpe Ratio is 0.48, which is lower than the VNQ Sharpe Ratio of 0.92. The chart below compares the historical Sharpe Ratios of VIGI 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

VIGI vs. VNQ - Drawdown Comparison

The maximum VIGI drawdown since its inception was -31.01%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for VIGI and VNQ.

Drawdown Indicators

	VIGI	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-31.01%	-73.07%	+42.06%
Max Drawdown (1Y) Largest decline over 1 year	-10.64%	-8.34%	-2.30%
Max Drawdown (3Y) Largest decline over 3 years	-14.50%	-17.46%	+2.96%
Max Drawdown (5Y) Largest decline over 5 years	-28.80%	-34.48%	+5.68%
Max Drawdown (10Y) Largest decline over 10 years	-31.01%	-42.40%	+11.39%
Current Drawdown Current decline from peak	-1.81%	-0.49%	-1.32%
Average Drawdown Average peak-to-trough decline	-6.17%	-13.61%	+7.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.04%	2.65%	+0.39%

Volatility

VIGI vs. VNQ - Volatility Comparison

The current volatility for Vanguard International Dividend Appreciation ETF (VIGI) is 3.34%, while Vanguard Real Estate ETF (VNQ) has a volatility of 4.74%. This indicates that VIGI 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

	VIGI	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.34%	4.74%	-1.40%
Volatility (6M) Calculated over the trailing 6-month period	10.45%	9.74%	+0.71%
Volatility (1Y) Calculated over the trailing 1-year period	13.20%	13.52%	-0.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.47%	18.85%	-4.38%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.88%	20.72%	-4.84%

VIGI vs. VNQ - Expense Ratio Comparison

VIGI has a 0.15% 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

VIGI vs. VNQ - Dividend Comparison

VIGI's dividend yield for the trailing twelve months is around 2.13%, less than VNQ's 3.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VIGI Vanguard International Dividend Appreciation ETF	2.13%	2.14%	1.93%	1.92%	2.06%	7.02%	1.29%	1.83%	1.99%	1.75%	1.05%	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 VIGI and VNQ in my portfolio?

VIGI and VNQ have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VIGI or VNQ?

VNQ has higher volatility (4.74%) compared to VIGI (3.34%). In terms of maximum drawdown, VIGI dropped -31.01% vs VNQ's -73.07%.

Which ETF is better, VIGI or VNQ?

On 10-year performance, VIGI leads with 8.21% vs 5.53% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VIGI has been the lower-risk option at 3.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VIGI or VNQ?

Over the 10-year period, VIGI has performed better with a 8.21% return vs 5.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VIGI or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.15% for VIGI.

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

VNQ has the higher dividend yield at 3.57%, compared with 2.13% for VIGI.

What is the main difference between VIGI and VNQ?

VIGI is categorized as Dividend, while VNQ is REIT. VIGI tracks S&P Global Ex-U.S. Dividend Growers Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. Their fees differ too: 0.15% for VIGI and 0.13% for VNQ.

Which has better risk-adjusted returns?

VNQ currently has the higher Sharpe Ratio (0.92 vs 0.48), 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.