VNQ vs. CDX
VNQ (Vanguard Real Estate ETF) and CDX (Simplify High Yield PLUS Credit Hedge ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while CDX is a High Yield Bonds fund actively managed by Simplify. VNQ is passively managed, while CDX is actively managed. Over the past 3 years, VNQ returned 10.14%/yr vs 7.84%/yr for CDX. At a 0.42 correlation, their price movements are largely independent. VNQ charges 0.13%/yr vs 0.26%/yr for CDX.
Performance
VNQ vs. CDX - Performance Comparison
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Returns By Period
In the year-to-date period, VNQ achieves a 12.51% return, which is significantly higher than CDX's -1.56% return.
VNQ
- 1D
- 0.92%
- 1M
- 3.35%
- YTD
- 12.51%
- 6M
- 12.32%
- 1Y
- 14.02%
- 3Y*
- 10.14%
- 5Y*
- 2.55%
- 10Y*
- 5.65%
CDX
- 1D
- -0.09%
- 1M
- 0.33%
- YTD
- -1.56%
- 6M
- -1.47%
- 1Y
- -0.54%
- 3Y*
- 7.84%
- 5Y*
- —
- 10Y*
- —
VNQ vs. CDX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 12.51% | 3.24% | 4.81% | 11.85% | -16.39% |
CDX Simplify High Yield PLUS Credit Hedge ETF | -1.56% | 9.51% | 7.71% | 12.74% | -8.26% |
Correlation
The correlation between VNQ and CDX is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.28 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.30 |
Correlation (All Time) Calculated using the full available price history since Feb 15, 2022 | 0.42 |
The correlation between VNQ and CDX shifts across timeframes, from 0.28 (1 year) to 0.42 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
VNQ vs. CDX — Risk / Return Rank
VNQ
CDX
VNQ vs. CDX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and Simplify High Yield PLUS Credit Hedge ETF (CDX). 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 | CDX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.08 | ||
| Sortino ratioReturn per unit of downside risk | +1.53 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 0.98 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 1.56 | -0.17 | +1.73 |
| Martin ratioReturn relative to average drawdown | 4.90 | -0.39 | +5.28 |
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Drawdowns
VNQ vs. CDX - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than CDX's maximum drawdown of -13.24%. Use the drawdown chart below to compare losses from any high point for VNQ and CDX.
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Drawdown Indicators
| VNQ | CDX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -13.24% | -59.83% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -4.18% | -4.16% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -8.88% | -8.58% |
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 | 0.00% | -6.57% | +6.57% |
Average DrawdownAverage peak-to-trough decline | -13.61% | -4.35% | -9.26% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.65% | 1.85% | +0.80% |
Volatility
VNQ vs. CDX - Volatility Comparison
Vanguard Real Estate ETF (VNQ) has a higher volatility of 4.72% compared to Simplify High Yield PLUS Credit Hedge ETF (CDX) at 1.73%. This indicates that VNQ's price experiences larger fluctuations and is considered to be riskier than CDX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VNQ | CDX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.72% | 1.73% | +2.99% |
Volatility (6M)Calculated over the trailing 6-month period | 9.77% | 4.81% | +4.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.54% | 5.80% | +7.74% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.84% | 11.08% | +7.76% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.72% | 11.08% | +9.64% |
VNQ vs. CDX - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is lower than CDX's 0.26% 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. CDX - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.54%, less than CDX's 8.29% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CDX Simplify High Yield PLUS Credit Hedge ETF | 8.29% | 7.18% | 12.60% | 5.26% | 7.51% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VNQ Vanguard Real Estate ETF | 3.54% | 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 CDX have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VNQ has higher volatility (4.72%) compared to CDX (1.73%). In terms of maximum drawdown, VNQ dropped -73.07% vs CDX's -13.24%.
On 3-year performance, VNQ leads with 10.14% vs 7.84% for CDX. On fees, VNQ is cheaper at 0.13% per year. On volatility, CDX has been the lower-risk option at 1.73%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, VNQ has performed better with a 10.14% return vs 7.84%. 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 0.26% for CDX.
CDX has the higher dividend yield at 8.29%, compared with 3.54% for VNQ.
VNQ is categorized as REIT, while CDX is High Yield Bonds. They also come from different issuers: Vanguard and Simplify. Their fees differ too: 0.13% for VNQ and 0.26% for CDX.
VNQ currently has the higher Sharpe Ratio (0.96 vs -0.12), 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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