VNQ vs. DRN

Last updated Jun 4, 2026

VNQ (Vanguard Real Estate ETF) and DRN (Direxion Daily Real Estate Bull 3x Shares) are both REIT funds - VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index while DRN tracks the MSCI US REIT Index (300%). Both are passively managed. Over the past 10 years, VNQ returned 5.21%/yr vs -5.09%/yr for DRN. With a 0.99 correlation, they move nearly in lockstep. VNQ charges 0.13%/yr vs 0.99%/yr for DRN.

Performance

VNQ vs. DRN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Real Estate ETF (VNQ) and Direxion Daily Real Estate Bull 3x Shares (DRN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VNQ achieves a 7.83% return, which is significantly lower than DRN's 19.48% return. Over the past 10 years, VNQ has outperformed DRN with an annualized return of 5.21%, while DRN has yielded a comparatively lower -5.09% annualized return.

VNQ

• 1D: -0.12%
• 1M: -1.10%
• YTD: 7.83%
• 6M: 6.75%
• 1Y: 9.97%
• 3Y*: 9.15%
• 5Y*: 2.18%
• 10Y*: 5.21%

DRN

• 1D: 0.10%
• 1M: -4.89%
• YTD: 19.48%
• 6M: 15.83%
• 1Y: 7.81%
• 3Y*: 7.35%
• 5Y*: -11.56%
• 10Y*: -5.09%

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

VNQ vs. DRN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VNQ Vanguard Real Estate ETF	7.83%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%
DRN Direxion Daily Real Estate Bull 3x Shares	19.48%	-11.24%	-5.29%	12.03%	-67.26%	152.94%	-55.37%	81.86%	-25.11%	7.50%

Correlation

The correlation between VNQ and DRN is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Jul 17, 2009	0.99

The correlation between VNQ and DRN has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

VNQ vs. DRN - Sectors Allocation Comparison

Sectors	VNQ	DRN
Real Estate	97.3%	19.6%
Basic Materials	1.1%	0.4%
Communication Services	0.6%	-
Technology	0.3%	-
Energy	0.1%	-
Financial Services	0.1%	-
Industrials	0.0%	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Healthcare	-	-
Utilities	-	-

Return for Risk

VNQ vs. DRN — Risk / Return Rank

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

VNQ

VNQ Risk / Return Rank: 23
VNQ Sharpe Ratio Rank: 22
VNQ Sortino Ratio Rank: 21
VNQ Omega Ratio Rank: 20
VNQ Calmar Ratio Rank: 25
VNQ Martin Ratio Rank: 27

DRN

DRN Risk / Return Rank: 12
DRN Sharpe Ratio Rank: 11
DRN Sortino Ratio Rank: 12
DRN Omega Ratio Rank: 13
DRN Calmar Ratio Rank: 12
DRN Martin Ratio Rank: 12

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.

VNQ vs. DRN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and Direxion Daily Real Estate Bull 3x Shares (DRN). 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.

	VNQ	DRN	Difference
Sharpe ratio: Return per unit of total volatility	0.76	0.20	+0.57
Sortino ratio: Return per unit of downside risk	1.12	0.53	+0.58
Omega ratio: Gain probability vs. loss probability	1.14	1.07	+0.07
Calmar ratio: Return relative to maximum drawdown	1.20	0.32	+0.88
Martin ratio: Return relative to average drawdown	3.78	0.72	+3.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VNQ vs. DRN - Sharpe Ratio Comparison

The current VNQ Sharpe Ratio is 0.76, which is higher than the DRN Sharpe Ratio of 0.20. The chart below compares the historical Sharpe Ratios of VNQ and DRN, 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

	VNQ	DRN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.76	0.20	+0.57
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.12	-0.20	+0.32
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.25	-0.08	+0.34
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.21	+0.05

Drawdowns

VNQ vs. DRN - Drawdown Comparison

The maximum VNQ drawdown since its inception was -73.07%, smaller than the maximum DRN drawdown of -86.32%. Use the drawdown chart below to compare losses from any high point for VNQ and DRN.

Drawdown Indicators

	VNQ	DRN	Difference
Max Drawdown Largest peak-to-trough decline	-73.07%	-86.32%	+13.25%
Max Drawdown (1Y) Largest decline over 1 year	-8.34%	-24.28%	+15.94%
Max Drawdown (3Y) Largest decline over 3 years	-17.46%	-48.26%	+30.80%
Max Drawdown (5Y) Largest decline over 5 years	-34.48%	-80.58%	+46.10%
Max Drawdown (10Y) Largest decline over 10 years	-42.40%	-86.32%	+43.92%
Current Drawdown Current decline from peak	-3.75%	-65.93%	+62.18%
Average Drawdown Average peak-to-trough decline	-13.63%	-35.07%	+21.44%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.64%	10.91%	-8.27%

Volatility

VNQ vs. DRN - Volatility Comparison

The current volatility for Vanguard Real Estate ETF (VNQ) is 3.72%, while Direxion Daily Real Estate Bull 3x Shares (DRN) has a volatility of 11.13%. This indicates that VNQ experiences smaller price fluctuations and is considered to be less risky than DRN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VNQ	DRN	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.72%	11.13%	-7.41%
Volatility (6M) Calculated over the trailing 6-month period	9.26%	28.89%	-19.63%
Volatility (1Y) Calculated over the trailing 1-year period	13.16%	40.04%	-26.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.80%	56.65%	-37.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.70%	60.61%	-39.91%

VNQ vs. DRN - Expense Ratio Comparison

VNQ has a 0.13% expense ratio, which is lower than DRN's 0.99% expense ratio.

Dividends

VNQ vs. DRN - Dividend Comparison

VNQ's dividend yield for the trailing twelve months is around 3.69%, more than DRN's 2.23% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DRN Direxion Daily Real Estate Bull 3x Shares	2.23%	2.81%	2.24%	2.84%	2.70%	4.21%	1.90%	2.59%	3.11%	0.91%	0.00%	0.00%
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 VNQ and DRN in my portfolio?

With a correlation of 0.98, VNQ and DRN move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, VNQ or DRN?

DRN has higher volatility (11.13%) compared to VNQ (3.72%). In terms of maximum drawdown, VNQ dropped -73.07% vs DRN's -86.32%.

Which ETF is better, VNQ or DRN?

On 10-year performance, VNQ leads with 5.21% vs -5.09% for DRN. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 3.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VNQ or DRN?

Over the 10-year period, VNQ has performed better with a 5.21% return vs -5.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VNQ or DRN?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.99% for DRN.

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

VNQ has the higher dividend yield at 3.69%, compared with 2.23% for DRN.

What is the main difference between VNQ and DRN?

VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while DRN tracks MSCI US REIT Index (300%). They also come from different issuers: Vanguard and Direxion. Their fees differ too: 0.13% for VNQ and 0.99% for DRN.

Which has better risk-adjusted returns?

VNQ currently has the higher Sharpe Ratio (0.76 vs 0.20), 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.