VNQ vs. AVSC
VNQ (Vanguard Real Estate ETF) and AVSC (Avantis US Small Cap Equity ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while AVSC is a Small Cap Value Equities fund tracking the Russell 2000 Index. Both are passively managed. Over the past 3 years, VNQ returned 8.75%/yr vs 16.83%/yr for AVSC. A 0.66 correlation means they provide meaningful diversification when combined. VNQ charges 0.13%/yr vs 0.25%/yr for AVSC.
Performance
VNQ vs. AVSC - Performance Comparison
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Returns By Period
In the year-to-date period, VNQ achieves a 9.20% return, which is significantly lower than AVSC's 19.48% return.
VNQ
- 1D
- -2.50%
- 1M
- 0.63%
- YTD
- 9.20%
- 6M
- 9.07%
- 1Y
- 10.97%
- 3Y*
- 8.75%
- 5Y*
- 2.59%
- 10Y*
- 5.20%
AVSC
- 1D
- -0.99%
- 1M
- 5.07%
- YTD
- 19.48%
- 6M
- 18.11%
- 1Y
- 41.59%
- 3Y*
- 16.83%
- 5Y*
- —
- 10Y*
- —
VNQ vs. AVSC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 9.20% | 3.24% | 4.81% | 11.85% | -22.71% |
AVSC Avantis US Small Cap Equity ETF | 19.48% | 9.42% | 7.75% | 19.68% | -12.40% |
Correlation
The correlation between VNQ and AVSC is 0.54, 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 | 0.54 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.61 |
Correlation (All Time) Calculated using the full available price history since Jan 13, 2022 | 0.66 |
The correlation between VNQ and AVSC shifts across timeframes, from 0.54 (1 year) to 0.66 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
VNQ vs. AVSC — Risk / Return Rank
VNQ
AVSC
VNQ vs. AVSC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and Avantis US Small Cap Equity ETF (AVSC). 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.
| VNQ | AVSC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.50 | ||
| Sortino ratioReturn per unit of downside risk | -2.11 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.39 | -0.24 |
| Calmar ratioReturn relative to maximum drawdown | 1.32 | 5.30 | -3.97 |
| Martin ratioReturn relative to average drawdown | 4.15 | 16.59 | -12.44 |
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Drawdowns
VNQ vs. AVSC - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than AVSC's maximum drawdown of -28.40%. Use the drawdown chart below to compare losses from any high point for VNQ and AVSC.
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Drawdown Indicators
| VNQ | AVSC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -28.40% | -44.67% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -7.89% | -0.45% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -28.40% | +10.94% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | — | — |
Current DrawdownCurrent decline from peak | -2.94% | -1.91% | -1.03% |
Average DrawdownAverage peak-to-trough decline | -13.60% | -7.37% | -6.23% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.65% | 2.51% | +0.14% |
Volatility
VNQ vs. AVSC - Volatility Comparison
Vanguard Real Estate ETF (VNQ) and Avantis US Small Cap Equity ETF (AVSC) have volatilities of 5.08% and 4.99%, 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
| VNQ | AVSC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.08% | 4.99% | +0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 10.13% | 11.95% | -1.82% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.75% | 18.17% | -4.42% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.88% | 22.30% | -3.42% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.74% | 22.30% | -1.56% |
VNQ vs. AVSC - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is lower than AVSC's 0.25% 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
VNQ vs. AVSC - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.65%, more than AVSC's 1.22% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AVSC Avantis US Small Cap Equity ETF | 1.22% | 1.16% | 1.17% | 1.42% | 1.10% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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
VNQ and AVSC have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VNQ has higher volatility (5.08%) compared to AVSC (4.99%). In terms of maximum drawdown, VNQ dropped -73.07% vs AVSC's -28.40%.
On 3-year performance, AVSC leads with 16.83% vs 8.75% for VNQ. On fees, VNQ is cheaper at 0.13% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, AVSC has performed better with a 16.83% return vs 8.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.25% for AVSC.
VNQ has the higher dividend yield at 3.65%, compared with 1.22% for AVSC.
VNQ is categorized as REIT, while AVSC is Small Cap Value Equities. VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while AVSC tracks Russell 2000 Index. They also come from different issuers: Vanguard and Avantis. Their fees differ too: 0.13% for VNQ and 0.25% for AVSC.
AVSC currently has the higher Sharpe Ratio (2.30 vs 0.80), 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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