VIOO vs. VNQ
VIOO (Vanguard S&P Small-Cap 600 ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - VIOO is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 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, VIOO returned 11.35%/yr vs 5.31%/yr for VNQ. A 0.61 correlation means they provide meaningful diversification when combined. VIOO charges 0.07%/yr vs 0.13%/yr for VNQ.
Performance
VIOO vs. VNQ - Performance Comparison
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Returns By Period
In the year-to-date period, VIOO achieves a 19.73% return, which is significantly higher than VNQ's 10.32% return. Over the past 10 years, VIOO has outperformed VNQ with an annualized return of 11.35%, while VNQ has yielded a comparatively lower 5.31% annualized return.
VIOO
- 1D
- 0.05%
- 1M
- 4.59%
- YTD
- 19.73%
- 6M
- 16.79%
- 1Y
- 36.99%
- 3Y*
- 16.33%
- 5Y*
- 6.65%
- 10Y*
- 11.35%
VNQ
- 1D
- 1.08%
- 1M
- -0.19%
- YTD
- 10.32%
- 6M
- 10.63%
- 1Y
- 11.80%
- 3Y*
- 10.81%
- 5Y*
- 2.52%
- 10Y*
- 5.31%
VIOO vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VIOO Vanguard S&P Small-Cap 600 ETF | 19.73% | 6.04% | 8.48% | 16.16% | -16.26% | 26.79% | 11.47% | 22.68% | -8.65% | 13.16% |
VNQ Vanguard Real Estate ETF | 10.32% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
Correlation
The correlation between VIOO and VNQ is 0.58, 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 | 0.58 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.65 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.68 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.60 |
Correlation (All Time) Calculated using the full available price history since Sep 9, 2010 | 0.61 |
The correlation between VIOO and VNQ has been stable across timeframes, ranging from 0.58 to 0.68 - a consistent structural relationship.
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Return for Risk
VIOO vs. VNQ — Risk / Return Rank
VIOO
VNQ
VIOO vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P Small-Cap 600 ETF (VIOO) 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.
| VIOO | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.23 | ||
| Sortino ratioReturn per unit of downside risk | +1.75 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.16 | +0.20 |
| Calmar ratioReturn relative to maximum drawdown | 4.24 | 1.42 | +2.82 |
| Martin ratioReturn relative to average drawdown | 14.31 | 4.45 | +9.86 |
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Drawdowns
VIOO vs. VNQ - Drawdown Comparison
The maximum VIOO drawdown since its inception was -44.15%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for VIOO and VNQ.
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Drawdown Indicators
| VIOO | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -44.15% | -73.07% | +28.92% |
Max Drawdown (1Y)Largest decline over 1 year | -8.77% | -8.34% | -0.43% |
Max Drawdown (3Y)Largest decline over 3 years | -27.93% | -17.46% | -10.47% |
Max Drawdown (5Y)Largest decline over 5 years | -27.93% | -34.48% | +6.55% |
Max Drawdown (10Y)Largest decline over 10 years | -44.15% | -42.40% | -1.75% |
Current DrawdownCurrent decline from peak | -0.12% | -1.95% | +1.83% |
Average DrawdownAverage peak-to-trough decline | -7.31% | -13.60% | +6.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.59% | 2.66% | -0.07% |
Volatility
VIOO vs. VNQ - Volatility Comparison
Vanguard S&P Small-Cap 600 ETF (VIOO) and Vanguard Real Estate ETF (VNQ) have volatilities of 4.93% and 5.03%, 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.
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Volatility by Period
| VIOO | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.93% | 5.03% | -0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 12.10% | 10.15% | +1.95% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.80% | 13.81% | +3.99% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.40% | 18.85% | +2.55% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.01% | 20.75% | +2.26% |
VIOO vs. VNQ - Expense Ratio Comparison
VIOO has a 0.07% 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
VIOO vs. VNQ - Dividend Comparison
VIOO's dividend yield for the trailing twelve months is around 1.13%, less than VNQ's 3.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VIOO Vanguard S&P Small-Cap 600 ETF | 1.13% | 1.36% | 1.48% | 1.47% | 1.51% | 1.16% | 1.09% | 1.37% | 1.32% | 1.11% | 1.06% | 1.26% |
VNQ Vanguard Real Estate ETF | 3.61% | 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
VIOO and VNQ have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VNQ has higher volatility (5.03%) compared to VIOO (4.93%). In terms of maximum drawdown, VIOO dropped -44.15% vs VNQ's -73.07%.
On 10-year performance, VIOO leads with 11.35% vs 5.31% for VNQ. On fees, VIOO is cheaper at 0.07% per year. On volatility, VIOO has been the lower-risk option at 4.93%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VIOO has performed better with a 11.35% return vs 5.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VIOO is cheaper with a 0.07% expense ratio, compared with 0.13% for VNQ.
VNQ has the higher dividend yield at 3.61%, compared with 1.13% for VIOO.
VIOO is categorized as Small Cap Blend Equities, while VNQ is REIT. VIOO tracks S&P SmallCap 600 Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. Their fees differ too: 0.07% for VIOO and 0.13% for VNQ.
VIOO currently has the higher Sharpe Ratio (2.09 vs 0.86), 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.
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