VNQ vs. IIPR
VNQ (Vanguard Real Estate ETF) is REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while IIPR (Innovative Industrial Properties, Inc.) is a stock. Over the past 5 years, VNQ returned 2.55%/yr vs -13.57%/yr for IIPR. At a 0.45 correlation, their price movements are largely independent.
Performance
VNQ vs. IIPR - Performance Comparison
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Returns By Period
In the year-to-date period, VNQ achieves a 12.51% return, which is significantly lower than IIPR's 32.69% return.
VNQ
- 1D
- 0.92%
- 1M
- 4.90%
- YTD
- 12.51%
- 6M
- 12.32%
- 1Y
- 14.02%
- 3Y*
- 10.14%
- 5Y*
- 2.55%
- 10Y*
- 5.65%
IIPR
- 1D
- -2.07%
- 1M
- 12.06%
- YTD
- 32.69%
- 6M
- 15.09%
- 1Y
- 24.22%
- 3Y*
- 4.81%
- 5Y*
- -13.57%
- 10Y*
- —
VNQ vs. IIPR - 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% |
IIPR Innovative Industrial Properties, Inc. | 32.69% | -18.40% | -28.55% | 8.78% | -59.02% | 47.49% | 151.33% | 72.52% | 43.88% | 82.30% |
Correlation
The correlation between VNQ and IIPR is 0.45, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.45 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.55 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Dec 1, 2016 | 0.45 |
The correlation between VNQ and IIPR shifts across timeframes, from 0.45 (1 year) to 0.58 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VNQ vs. IIPR — Risk / Return Rank
VNQ
IIPR
VNQ vs. IIPR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and Innovative Industrial Properties, Inc. (IIPR). 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 | IIPR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.40 | ||
| Sortino ratioReturn per unit of downside risk | +0.24 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.14 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.56 | 1.09 | +0.47 |
| Martin ratioReturn relative to average drawdown | 4.90 | 2.65 | +2.25 |
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Drawdowns
VNQ vs. IIPR - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, smaller than the maximum IIPR drawdown of -78.42%. Use the drawdown chart below to compare losses from any high point for VNQ and IIPR.
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Drawdown Indicators
| VNQ | IIPR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -78.42% | +5.35% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -21.29% | +12.95% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -62.92% | +45.46% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -78.42% | +43.94% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | — | — |
Current DrawdownCurrent decline from peak | 0.00% | -68.14% | +68.14% |
Average DrawdownAverage peak-to-trough decline | -13.61% | -37.34% | +23.73% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.65% | 8.73% | -6.08% |
Volatility
VNQ vs. IIPR - Volatility Comparison
The current volatility for Vanguard Real Estate ETF (VNQ) is 4.72%, while Innovative Industrial Properties, Inc. (IIPR) has a volatility of 9.13%. This indicates that VNQ experiences smaller price fluctuations and is considered to be less risky than IIPR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VNQ | IIPR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.72% | 9.13% | -4.41% |
Volatility (6M)Calculated over the trailing 6-month period | 9.77% | 30.31% | -20.54% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.54% | 41.56% | -28.02% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.84% | 41.71% | -22.87% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.72% | 48.46% | -27.74% |
Dividends
VNQ vs. IIPR - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.54%, less than IIPR's 12.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IIPR Innovative Industrial Properties, Inc. | 12.56% | 16.05% | 11.28% | 7.16% | 7.01% | 2.18% | 2.44% | 3.73% | 1.87% | 1.70% | 0.00% | 0.00% |
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 IIPR have a correlation of 0.45, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IIPR has higher volatility (9.13%) compared to VNQ (4.72%). In terms of maximum drawdown, VNQ dropped -73.07% vs IIPR's -78.42%.
VNQ currently has the higher Sharpe Ratio (0.96 vs 0.56), 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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