VNQ vs. FRI
VNQ (Vanguard Real Estate ETF) and FRI (First Trust S&P REIT Index Fund) are both REIT funds - VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index while FRI tracks the S&P United States REIT. Both are passively managed. Over the past 10 years, VNQ returned 5.35%/yr vs 5.95%/yr for FRI. Their correlation of 0.92 suggests significant overlap in exposure. VNQ charges 0.13%/yr vs 0.50%/yr for FRI.
Performance
VNQ vs. FRI - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, VNQ achieves a 10.80% return, which is significantly lower than FRI's 16.95% return. Over the past 10 years, VNQ has underperformed FRI with an annualized return of 5.35%, while FRI has yielded a comparatively higher 5.95% annualized return.
VNQ
- 1D
- -0.87%
- 1M
- 0.25%
- YTD
- 10.80%
- 6M
- 10.46%
- 1Y
- 10.33%
- 3Y*
- 10.98%
- 5Y*
- 2.52%
- 10Y*
- 5.35%
FRI
- 1D
- 0.20%
- 1M
- 1.78%
- YTD
- 16.95%
- 6M
- 16.56%
- 1Y
- 18.05%
- 3Y*
- 13.69%
- 5Y*
- 5.09%
- 10Y*
- 5.95%
VNQ vs. FRI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 10.80% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
FRI First Trust S&P REIT Index Fund | 16.95% | 2.80% | 7.84% | 13.33% | -24.66% | 42.55% | -7.90% | 23.67% | -4.28% | 3.86% |
Correlation
The correlation between VNQ and FRI is 0.96 - 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 | 0.96 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.98 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since May 10, 2007 | 0.92 |
The correlation between VNQ and FRI has been stable across timeframes, ranging from 0.92 to 0.98 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
VNQ vs. FRI — Risk / Return Rank
VNQ
FRI
VNQ vs. FRI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and First Trust S&P REIT Index Fund (FRI). 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 | FRI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.57 | ||
| Sortino ratioReturn per unit of downside risk | -0.73 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.23 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 1.24 | 2.39 | -1.15 |
| Martin ratioReturn relative to average drawdown | 3.92 | 7.68 | -3.75 |
Loading charts...
Drawdowns
VNQ vs. FRI - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, roughly equal to the maximum FRI drawdown of -71.95%. Use the drawdown chart below to compare losses from any high point for VNQ and FRI.
Loading charts...
Drawdown Indicators
| VNQ | FRI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -71.95% | -1.12% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -7.57% | -0.77% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -18.90% | +1.44% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -31.21% | -3.27% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -44.16% | +1.76% |
Current DrawdownCurrent decline from peak | -1.52% | -0.05% | -1.47% |
Average DrawdownAverage peak-to-trough decline | -13.60% | -13.66% | +0.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.66% | 2.40% | +0.26% |
Volatility
VNQ vs. FRI - Volatility Comparison
Vanguard Real Estate ETF (VNQ) and First Trust S&P REIT Index Fund (FRI) have volatilities of 5.27% and 5.30%, 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.
Loading charts...
Volatility by Period
| VNQ | FRI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.27% | 5.30% | -0.03% |
Volatility (6M)Calculated over the trailing 6-month period | 10.24% | 9.97% | +0.27% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.79% | 13.66% | +0.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.87% | 18.69% | +0.18% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.75% | 21.10% | -0.35% |
VNQ vs. FRI - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is lower than FRI's 0.50% expense ratio.
Dividends
VNQ vs. FRI - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.59%, more than FRI's 2.49% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FRI First Trust S&P REIT Index Fund | 2.49% | 2.99% | 3.33% | 3.24% | 2.52% | 1.44% | 3.08% | 2.28% | 3.21% | 2.82% | 3.27% | 2.66% |
VNQ Vanguard Real Estate ETF | 3.59% | 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
With a correlation of 0.96, VNQ and FRI 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.
FRI has higher volatility (5.30%) compared to VNQ (5.27%). In terms of maximum drawdown, VNQ dropped -73.07% vs FRI's -71.95%.
On 10-year performance, FRI leads with 5.95% vs 5.35% 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 10-year period, FRI has performed better with a 5.95% return vs 5.35%. 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 0.50% for FRI.
VNQ has the higher dividend yield at 3.59%, compared with 2.49% for FRI.
VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while FRI tracks S&P United States REIT. They also come from different issuers: Vanguard and First Trust. Their fees differ too: 0.13% for VNQ and 0.50% for FRI.
FRI currently has the higher Sharpe Ratio (1.33 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.
Find the right allocation for VNQ and FRI
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer