VNQ vs. GRID
VNQ (Vanguard Real Estate ETF) and GRID (First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while GRID is a Alternative Energy Equities fund tracking the Nasdaq Clean Edge Smart Grid Infrastructure Index. Both are passively managed. Over the past 10 years, VNQ returned 5.44%/yr vs 19.71%/yr for GRID. At a 0.48 correlation, their price movements are largely independent. VNQ charges 0.13%/yr vs 0.70%/yr for GRID.
Performance
VNQ vs. GRID - Performance Comparison
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Returns By Period
In the year-to-date period, VNQ achieves a 11.72% return, which is significantly lower than GRID's 25.84% return. Over the past 10 years, VNQ has underperformed GRID with an annualized return of 5.44%, while GRID has yielded a comparatively higher 19.71% annualized return.
VNQ
- 1D
- -0.70%
- 1M
- 4.16%
- YTD
- 11.72%
- 6M
- 11.19%
- 1Y
- 13.22%
- 3Y*
- 9.58%
- 5Y*
- 2.68%
- 10Y*
- 5.44%
GRID
- 1D
- 1.82%
- 1M
- 0.35%
- YTD
- 25.84%
- 6M
- 25.25%
- 1Y
- 45.78%
- 3Y*
- 23.73%
- 5Y*
- 17.31%
- 10Y*
- 19.71%
VNQ vs. GRID - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 11.72% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
GRID First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund | 25.84% | 29.65% | 15.18% | 21.57% | -13.89% | 27.65% | 48.84% | 42.80% | -22.69% | 27.44% |
Correlation
The correlation between VNQ and GRID is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.27 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.46 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.56 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.48 |
Correlation (All Time) Calculated using the full available price history since Nov 17, 2009 | 0.48 |
Over the past year, the correlation between VNQ and GRID has dropped to 0.27 - well below their long-term average of 0.48, suggesting their price drivers have been diverging.
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Return for Risk
VNQ vs. GRID — Risk / Return Rank
VNQ
GRID
VNQ vs. GRID - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID). 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 | GRID | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.23 | ||
| Sortino ratioReturn per unit of downside risk | -1.49 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.38 | -0.21 |
| Calmar ratioReturn relative to maximum drawdown | 1.59 | 3.92 | -2.33 |
| Martin ratioReturn relative to average drawdown | 5.01 | 14.11 | -9.10 |
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Drawdowns
VNQ vs. GRID - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than GRID's maximum drawdown of -40.56%. Use the drawdown chart below to compare losses from any high point for VNQ and GRID.
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Drawdown Indicators
| VNQ | GRID | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -40.56% | -32.51% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -11.73% | +3.39% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -20.77% | +3.31% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -29.64% | -4.84% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -40.56% | -1.84% |
Current DrawdownCurrent decline from peak | -0.70% | -3.68% | +2.98% |
Average DrawdownAverage peak-to-trough decline | -13.61% | -8.42% | -5.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.64% | 3.25% | -0.61% |
Volatility
VNQ vs. GRID - Volatility Comparison
The current volatility for Vanguard Real Estate ETF (VNQ) is 4.74%, while First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) has a volatility of 9.77%. This indicates that VNQ experiences smaller price fluctuations and is considered to be less risky than GRID based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VNQ | GRID | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.74% | 9.77% | -5.03% |
Volatility (6M)Calculated over the trailing 6-month period | 9.79% | 17.77% | -7.98% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.54% | 20.78% | -7.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.85% | 21.27% | -2.42% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.72% | 22.88% | -2.16% |
VNQ vs. GRID - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is lower than GRID's 0.70% expense ratio.
Dividends
VNQ vs. GRID - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.56%, more than GRID's 0.78% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
GRID First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund | 0.78% | 1.01% | 1.06% | 1.23% | 1.26% | 0.63% | 0.68% | 1.26% | 1.28% | 1.07% | 1.07% | 1.23% |
VNQ Vanguard Real Estate ETF | 3.56% | 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 GRID have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
GRID has higher volatility (9.77%) compared to VNQ (4.74%). In terms of maximum drawdown, VNQ dropped -73.07% vs GRID's -40.56%.
On 10-year performance, GRID leads with 19.71% vs 5.44% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 4.74%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, GRID has performed better with a 19.71% return vs 5.44%. 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 0.70% for GRID.
VNQ has the higher dividend yield at 3.56%, compared with 0.78% for GRID.
VNQ is categorized as REIT, while GRID is Alternative Energy Equities. VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while GRID tracks Nasdaq Clean Edge Smart Grid Infrastructure Index. They also come from different issuers: Vanguard and First Trust. Their fees differ too: 0.13% for VNQ and 0.70% for GRID.
GRID currently has the higher Sharpe Ratio (2.22 vs 0.98), 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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