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VNQ vs. DVY
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VNQ vs. DVY

Last updated Jun 13, 2026

VNQ (Vanguard Real Estate ETF) and DVY (iShares Select Dividend ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while DVY is a Large Cap Value Equities fund tracking the Dow Jones U.S. Select Dividend Index. Both are passively managed. Over the past 10 years, VNQ returned 5.65%/yr vs 10.49%/yr for DVY. A 0.70 correlation means they provide meaningful diversification when combined. VNQ charges 0.13%/yr vs 0.39%/yr for DVY.

Performance

VNQ vs. DVY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Real Estate ETF (VNQ) and iShares Select Dividend ETF (DVY). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VNQ achieves a 12.51% return, which is significantly lower than DVY's 13.40% return. Over the past 10 years, VNQ has underperformed DVY with an annualized return of 5.65%, while DVY has yielded a comparatively higher 10.49% annualized return.

VNQ

1D
0.92%
1M
2.73%
YTD
12.51%
6M
12.32%
1Y
12.92%
3Y*
10.14%
5Y*
2.55%
10Y*
5.65%

DVY

1D
1.18%
1M
4.47%
YTD
13.40%
6M
12.29%
1Y
24.31%
3Y*
15.86%
5Y*
9.31%
10Y*
10.49%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VNQ vs. DVY - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VNQ
Vanguard Real Estate ETF		12.51%3.24%4.81%11.85%-26.25%40.54%-4.61%28.91%-6.03%4.90%
DVY
iShares Select Dividend ETF		13.40%11.60%16.24%1.12%1.80%31.70%-4.91%22.62%-6.36%14.82%

Correlation

The correlation between VNQ and DVY is 0.69, 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

0.69

Correlation (3Y)
Calculated over the trailing 3-year period

0.74

Correlation (5Y)
Calculated over the trailing 5-year period

0.73

Correlation (10Y)
Calculated over the trailing 10-year period

0.67

Correlation (All Time)
Calculated using the full available price history since Sep 29, 2004

0.70

The correlation between VNQ and DVY has been stable across timeframes, ranging from 0.67 to 0.74 - a consistent structural relationship.

VNQ vs. DVY - Sectors Allocation Comparison

Sectors
VNQ
DVY

Real Estate

97.3%

-

Basic Materials

1.1%
2.3%

Communication Services

0.6%
6.0%

Technology

0.3%
3.4%

Energy

0.1%
9.1%

Financial Services

0.1%
24.9%

Industrials

0.0%
2.1%

Consumer Cyclical

-

9.4%

Consumer Defensive

-

13.5%

Healthcare

-

5.0%

Utilities

-

24.2%

Real Estate

VNQ
97.3%
DVY

-

Basic Materials

VNQ
1.1%
DVY
2.3%

Communication Services

VNQ
0.6%
DVY
6.0%

Technology

VNQ
0.3%
DVY
3.4%

Energy

VNQ
0.1%
DVY
9.1%

Financial Services

VNQ
0.1%
DVY
24.9%

Industrials

VNQ
0.0%
DVY
2.1%

Consumer Cyclical

VNQ

-

DVY
9.4%

Consumer Defensive

VNQ

-

DVY
13.5%

Healthcare

VNQ

-

DVY
5.0%

Utilities

VNQ

-

DVY
24.2%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Real Estate ETF

iShares Select Dividend ETF

Often compared with VNQ:
VNQ vs. SCHHVNQ vs. VOOVNQ vs. SPYVNQ vs. XLREVNQ vs. VNQIVNQ vs. SCHDVNQ vs. REET
Often compared with DVY:
DVY vs. SCHDDVY vs. HDVDVY vs. VYMDVY vs. DGRODVY vs. VIGDVY vs. SPYDDVY vs. VOO

Return for Risk

VNQ vs. DVY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VNQ
VNQ Risk / Return Rank: 3232
Overall Rank
VNQ Sharpe Ratio Rank: 3030
Sharpe Ratio Rank
VNQ Sortino Ratio Rank: 2828
Sortino Ratio Rank
VNQ Omega Ratio Rank: 2828
Omega Ratio Rank
VNQ Calmar Ratio Rank: 3535
Calmar Ratio Rank
VNQ Martin Ratio Rank: 3636
Martin Ratio Rank
DVY
DVY Risk / Return Rank: 7878
Overall Rank
DVY Sharpe Ratio Rank: 7979
Sharpe Ratio Rank
DVY Sortino Ratio Rank: 8282
Sortino Ratio Rank
DVY Omega Ratio Rank: 7474
Omega Ratio Rank
DVY Calmar Ratio Rank: 7878
Calmar Ratio Rank
DVY Martin Ratio Rank: 7676
Martin Ratio Rank
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. DVY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and iShares Select Dividend ETF (DVY). 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.

VNQDVYDifference
Sharpe ratioReturn per unit of total volatility
0.96
2.19

-1.23

Sortino ratioReturn per unit of downside risk
1.39
3.19

-1.80

Omega ratioGain probability vs. loss probability

1.17

1.37

-0.20

Calmar ratioReturn relative to maximum drawdown

1.56

3.54

-1.99

Martin ratioReturn relative to average drawdown

4.90

12.51

-7.61

VNQ vs. DVY - Sharpe Ratio Comparison

The current VNQ Sharpe Ratio is 0.96, which is lower than the DVY Sharpe Ratio of 2.19. The chart below compares the historical Sharpe Ratios of VNQ and DVY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

VNQ vs. DVY - Drawdown Comparison

The maximum VNQ drawdown since its inception was -73.07%, which is greater than DVY's maximum drawdown of -62.59%. Use the drawdown chart below to compare losses from any high point for VNQ and DVY.

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Drawdown Indicators

VNQDVYDifference

Max Drawdown

Largest peak-to-trough decline

-73.07%

-62.59%

-10.48%

Max Drawdown (1Y)

Largest decline over 1 year

-8.34%

-6.89%

-1.45%

Max Drawdown (3Y)

Largest decline over 3 years

-17.46%

-16.00%

-1.46%

Max Drawdown (5Y)

Largest decline over 5 years

-34.48%

-17.54%

-16.94%

Max Drawdown (10Y)

Largest decline over 10 years

-42.40%

-41.59%

-0.81%

Current Drawdown

Current decline from peak

0.00%

0.00%

0.00%

Average Drawdown

Average peak-to-trough decline

-13.61%

-8.78%

-4.83%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.65%

1.95%

+0.70%

Volatility

VNQ vs. DVY - Volatility Comparison

Vanguard Real Estate ETF (VNQ) has a higher volatility of 4.72% compared to iShares Select Dividend ETF (DVY) at 2.94%. This indicates that VNQ's price experiences larger fluctuations and is considered to be riskier than DVY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VNQDVYDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.72%

2.94%

+1.78%

Volatility (6M)

Calculated over the trailing 6-month period

9.77%

7.54%

+2.23%

Volatility (1Y)

Calculated over the trailing 1-year period

13.54%

11.16%

+2.38%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.84%

15.22%

+3.62%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.72%

18.01%

+2.71%

VNQ vs. DVY - Expense Ratio Comparison

VNQ has a 0.13% expense ratio, which is lower than DVY's 0.39% expense ratio.

Dividends

VNQ vs. DVY - Dividend Comparison

VNQ's dividend yield for the trailing twelve months is around 3.54%, more than DVY's 3.30% yield.

PositionTTM20252024202320222021202020192018201720162015
DVY
iShares Select Dividend ETF		3.30%3.65%3.65%3.82%3.43%3.12%3.66%3.41%3.58%3.00%3.04%3.45%
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 DVY have a correlation of 0.69, 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 DVY (2.94%). In terms of maximum drawdown, VNQ dropped -73.07% vs DVY's -62.59%.

On 10-year performance, DVY leads with 10.49% vs 5.65% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, DVY has been the lower-risk option at 2.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, DVY has performed better with a 10.49% return vs 5.65%. 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 0.39% for DVY.

VNQ has the higher dividend yield at 3.54%, compared with 3.30% for DVY.

VNQ is categorized as REIT, while DVY is Large Cap Value Equities. VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while DVY tracks Dow Jones U.S. Select Dividend Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.13% for VNQ and 0.39% for DVY.

DVY currently has the higher Sharpe Ratio (2.19 vs 0.96), 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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