VIS vs. VNQ

Last updated Jun 3, 2026

VIS (Vanguard Industrials ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - VIS is a Industrials Equities fund tracking the MSCI US Investable Market Industrials 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, VIS returned 14.09%/yr vs 5.22%/yr for VNQ. A 0.63 correlation means they provide meaningful diversification when combined. VIS charges 0.10%/yr vs 0.13%/yr for VNQ.

Performance

VIS vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Industrials ETF (VIS) 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, VIS achieves a 14.99% return, which is significantly higher than VNQ's 7.96% return. Over the past 10 years, VIS has outperformed VNQ with an annualized return of 14.09%, while VNQ has yielded a comparatively lower 5.22% annualized return.

VIS

• 1D: 1.16%
• 1M: 1.40%
• YTD: 14.99%
• 6M: 16.70%
• 1Y: 28.58%
• 3Y*: 22.65%
• 5Y*: 12.78%
• 10Y*: 14.09%

VNQ

• 1D: 0.46%
• 1M: -1.60%
• YTD: 7.96%
• 6M: 7.15%
• 1Y: 9.88%
• 3Y*: 9.19%
• 5Y*: 2.21%
• 10Y*: 5.22%

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

VIS vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIS Vanguard Industrials ETF	14.99%	18.57%	16.85%	22.50%	-8.57%	20.80%	12.34%	30.09%	-14.01%	21.47%
VNQ Vanguard Real Estate ETF	7.96%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between VIS and VNQ is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Sep 30, 2004	0.63

The correlation between VIS and VNQ shifts across timeframes, from 0.50 (1 year) to 0.66 (5 years), reflecting how their relationship changes across market environments.

VIS vs. VNQ - Sectors Allocation Comparison

Sectors	VIS	VNQ
Industrials	89.4%	0.0%
Technology	4.5%	0.3%
Utilities	4.3%	-
Consumer Cyclical	1.1%	-
Financial Services	0.2%	0.1%
Energy	0.1%	0.1%
Basic Materials	0.1%	1.1%
Communication Services	0.0%	0.6%
Real Estate	0.0%	97.3%
Healthcare	0.0%	-
Consumer Defensive	-	-

Return for Risk

VIS vs. VNQ — Risk / Return Rank

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

VIS

VIS Risk / Return Rank: 50
VIS Sharpe Ratio Rank: 50
VIS Sortino Ratio Rank: 51
VIS Omega Ratio Rank: 47
VIS Calmar Ratio Rank: 46
VIS Martin Ratio Rank: 55

VNQ

VNQ Risk / Return Rank: 23
VNQ Sharpe Ratio Rank: 22
VNQ Sortino Ratio Rank: 21
VNQ Omega Ratio Rank: 21
VNQ Calmar Ratio Rank: 25
VNQ Martin Ratio Rank: 27

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.

VIS vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Industrials ETF (VIS) 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.

	VIS	VNQ	Difference
Sharpe ratio Return per unit of total volatility	1.75	0.75	+0.99
Sortino ratio Return per unit of downside risk	2.51	1.11	+1.40
Omega ratio Gain probability vs. loss probability	1.30	1.14	+0.16
Calmar ratio Return relative to maximum drawdown	2.31	1.20	+1.10
Martin ratio Return relative to average drawdown	9.60	3.80	+5.79
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VIS vs. VNQ - Sharpe Ratio Comparison

The current VIS Sharpe Ratio is 1.75, which is higher than the VNQ Sharpe Ratio of 0.75. The chart below compares the historical Sharpe Ratios of VIS 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

	VIS	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.75	0.75	+0.99
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.70	0.12	+0.58
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.69	0.25	+0.44
Sharpe Ratio (All Time) Calculated using the full available price history	0.52	0.26	+0.26

Drawdowns

VIS vs. VNQ - Drawdown Comparison

The maximum VIS drawdown since its inception was -63.51%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for VIS and VNQ.

Drawdown Indicators

	VIS	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-63.51%	-73.07%	+9.56%
Max Drawdown (1Y) Largest decline over 1 year	-12.29%	-8.34%	-3.95%
Max Drawdown (3Y) Largest decline over 3 years	-20.80%	-17.46%	-3.34%
Max Drawdown (5Y) Largest decline over 5 years	-22.96%	-34.48%	+11.52%
Max Drawdown (10Y) Largest decline over 10 years	-42.42%	-42.40%	-0.02%
Current Drawdown Current decline from peak	-0.91%	-3.64%	+2.73%
Average Drawdown Average peak-to-trough decline	-8.38%	-13.63%	+5.25%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.95%	2.64%	+0.31%

Volatility

VIS vs. VNQ - Volatility Comparison

Vanguard Industrials ETF (VIS) has a higher volatility of 5.29% compared to Vanguard Real Estate ETF (VNQ) at 3.77%. This indicates that VIS'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

	VIS	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.29%	3.77%	+1.52%
Volatility (6M) Calculated over the trailing 6-month period	13.55%	9.33%	+4.22%
Volatility (1Y) Calculated over the trailing 1-year period	16.42%	13.16%	+3.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.35%	18.80%	-0.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.43%	20.70%	-0.27%

VIS vs. VNQ - Expense Ratio Comparison

VIS has a 0.10% 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

VIS vs. VNQ - Dividend Comparison

VIS's dividend yield for the trailing twelve months is around 0.89%, less than VNQ's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VIS Vanguard Industrials ETF	0.89%	1.01%	1.23%	1.36%	1.52%	1.11%	1.38%	1.68%	1.90%	1.60%	1.81%	1.94%
VNQ Vanguard Real Estate ETF	3.69%	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 VIS and VNQ in my portfolio?

VIS and VNQ have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VIS or VNQ?

VIS has higher volatility (5.29%) compared to VNQ (3.77%). In terms of maximum drawdown, VIS dropped -63.51% vs VNQ's -73.07%.

Which ETF is better, VIS or VNQ?

On 10-year performance, VIS leads with 14.09% vs 5.22% for VNQ. On fees, VIS is cheaper at 0.10% per year. On volatility, VNQ has been the lower-risk option at 3.77%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VIS or VNQ?

Over the 10-year period, VIS has performed better with a 14.09% return vs 5.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VIS or VNQ?

VIS is cheaper with a 0.10% expense ratio, compared with 0.13% for VNQ.

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

VNQ has the higher dividend yield at 3.69%, compared with 0.89% for VIS.

What is the main difference between VIS and VNQ?

VIS is categorized as Industrials Equities, while VNQ is REIT. VIS tracks MSCI US Investable Market Industrials 25/50 Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. Their fees differ too: 0.10% for VIS and 0.13% for VNQ.

Which has better risk-adjusted returns?

VIS currently has the higher Sharpe Ratio (1.75 vs 0.75), 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.