VNQ vs. FTSL
VNQ (Vanguard Real Estate ETF) and FTSL (First Trust Senior Loan Fund) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while FTSL is a High Yield Bonds fund actively managed by First Trust. VNQ is passively managed, while FTSL is actively managed. Over the past 10 years, VNQ returned 5.65%/yr vs 4.44%/yr for FTSL. At a 0.26 correlation, their price movements are largely independent. VNQ charges 0.13%/yr vs 0.86%/yr for FTSL.
Performance
VNQ vs. FTSL - 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 FTSL's 0.51% return. Over the past 10 years, VNQ has outperformed FTSL with an annualized return of 5.65%, while FTSL has yielded a comparatively lower 4.44% annualized 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%
FTSL
- 1D
- -0.04%
- 1M
- -0.10%
- YTD
- 0.51%
- 6M
- 0.66%
- 1Y
- 4.27%
- 3Y*
- 7.06%
- 5Y*
- 4.95%
- 10Y*
- 4.44%
VNQ vs. FTSL - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
FTSL First Trust Senior Loan Fund | 0.51% | 5.98% | 8.27% | 11.58% | -2.50% | 3.94% | 2.99% | 10.11% | -1.30% | 2.59% |
Correlation
The correlation between VNQ and FTSL is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.18 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.34 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.41 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.31 |
Correlation (All Time) Calculated using the full available price history since May 2, 2013 | 0.26 |
The correlation between VNQ and FTSL shifts across timeframes, from 0.18 (1 year) to 0.41 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VNQ vs. FTSL — Risk / Return Rank
VNQ
FTSL
VNQ vs. FTSL - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and First Trust Senior Loan Fund (FTSL). 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 | FTSL | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.08 | ||
| Sortino ratioReturn per unit of downside risk | -1.78 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.47 | -0.30 |
| Calmar ratioReturn relative to maximum drawdown | 1.56 | 1.85 | -0.30 |
| Martin ratioReturn relative to average drawdown | 4.90 | 6.88 | -1.98 |
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Drawdowns
VNQ vs. FTSL - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than FTSL's maximum drawdown of -22.67%. Use the drawdown chart below to compare losses from any high point for VNQ and FTSL.
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Drawdown Indicators
| VNQ | FTSL | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -22.67% | -50.40% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -2.33% | -6.01% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -2.66% | -14.80% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -6.96% | -27.52% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -22.67% | -19.73% |
Current DrawdownCurrent decline from peak | 0.00% | -0.14% | +0.14% |
Average DrawdownAverage peak-to-trough decline | -13.61% | -0.76% | -12.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.65% | 0.63% | +2.02% |
Volatility
VNQ vs. FTSL - Volatility Comparison
Vanguard Real Estate ETF (VNQ) has a higher volatility of 4.72% compared to First Trust Senior Loan Fund (FTSL) at 0.36%. This indicates that VNQ's price experiences larger fluctuations and is considered to be riskier than FTSL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VNQ | FTSL | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.72% | 0.36% | +4.36% |
Volatility (6M)Calculated over the trailing 6-month period | 9.77% | 1.95% | +7.82% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.54% | 2.11% | +11.43% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.84% | 3.35% | +15.49% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.72% | 5.18% | +15.54% |
VNQ vs. FTSL - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is lower than FTSL's 0.86% expense ratio.
Dividends
VNQ vs. FTSL - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.54%, less than FTSL's 6.47% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FTSL First Trust Senior Loan Fund | 6.47% | 6.59% | 7.56% | 7.59% | 4.77% | 3.17% | 3.48% | 4.44% | 4.29% | 3.64% | 3.70% | 3.95% |
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 FTSL have a correlation of 0.18, 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 FTSL (0.36%). In terms of maximum drawdown, VNQ dropped -73.07% vs FTSL's -22.67%.
On 10-year performance, VNQ leads with 5.65% vs 4.44% for FTSL. On fees, VNQ is cheaper at 0.13% per year. On volatility, FTSL has been the lower-risk option at 0.36%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VNQ has performed better with a 5.65% return vs 4.44%. 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 0.86% for FTSL.
FTSL has the higher dividend yield at 6.47%, compared with 3.54% for VNQ.
VNQ is categorized as REIT, while FTSL is High Yield Bonds. They also come from different issuers: Vanguard and First Trust. Their fees differ too: 0.13% for VNQ and 0.86% for FTSL.
FTSL currently has the higher Sharpe Ratio (2.04 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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