VNQ vs. JEPI

Last updated Jun 13, 2026

VNQ (Vanguard Real Estate ETF) and JEPI (JPMorgan Equity Premium Income ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while JEPI is a Dividend fund actively managed by JPMorgan. VNQ is passively managed, while JEPI is actively managed. Over the past 5 years, VNQ returned 2.55%/yr vs 7.45%/yr for JEPI. A 0.70 correlation means they provide meaningful diversification when combined. VNQ charges 0.13%/yr vs 0.35%/yr for JEPI.

Performance

VNQ vs. JEPI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Real Estate ETF (VNQ) and JPMorgan Equity Premium Income ETF (JEPI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VNQ achieves a 12.51% return, which is significantly higher than JEPI's 1.29% 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%

JEPI

• 1D: 0.43%
• 1M: 0.90%
• YTD: 1.29%
• 6M: 1.18%
• 1Y: 7.58%
• 3Y*: 9.13%
• 5Y*: 7.45%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VNQ vs. JEPI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
VNQ Vanguard Real Estate ETF	12.51%	3.24%	4.81%	11.85%	-26.25%	40.54%	21.09%
JEPI JPMorgan Equity Premium Income ETF	1.29%	8.09%	12.57%	9.83%	-3.49%	21.52%	18.39%

Correlation

The correlation between VNQ and JEPI is 0.62, 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	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (All Time) Calculated using the full available price history since May 21, 2020	0.70

The correlation between VNQ and JEPI has been stable across timeframes, ranging from 0.62 to 0.72 - a consistent structural relationship.

VNQ vs. JEPI - Sectors Allocation Comparison

Sectors	VNQ	JEPI
Real Estate	97.3%	3.5%
Basic Materials	1.1%	1.9%
Communication Services	0.6%	6.9%
Technology	0.3%	19.1%
Energy	0.1%	3.5%
Financial Services	0.1%	9.8%
Industrials	0.0%	13.8%
Consumer Cyclical	-	11.7%
Consumer Defensive	-	9.6%
Healthcare	-	14.1%
Utilities	-	6.2%

Return for Risk

VNQ vs. JEPI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VNQ

VNQ Risk / Return Rank: 32
VNQ Sharpe Ratio Rank: 30
VNQ Sortino Ratio Rank: 28
VNQ Omega Ratio Rank: 28
VNQ Calmar Ratio Rank: 35
VNQ Martin Ratio Rank: 36

JEPI

JEPI Risk / Return Rank: 28
JEPI Sharpe Ratio Rank: 30
JEPI Sortino Ratio Rank: 29
JEPI Omega Ratio Rank: 28
JEPI Calmar Ratio Rank: 27
JEPI Martin Ratio Rank: 28

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. JEPI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and JPMorgan Equity Premium Income ETF (JEPI). 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	JEPI	Difference
Sharpe ratio: Return per unit of total volatility	0.96	0.95	+0.01
Sortino ratio: Return per unit of downside risk	1.39	1.42	-0.03
Omega ratio: Gain probability vs. loss probability	1.17	1.17	0.00
Calmar ratio: Return relative to maximum drawdown	1.56	1.14	+0.42
Martin ratio: Return relative to average drawdown	4.90	3.46	+1.44

VNQ vs. JEPI - Sharpe Ratio Comparison

The current VNQ Sharpe Ratio is 0.96, which is comparable to the JEPI Sharpe Ratio of 0.95. The chart below compares the historical Sharpe Ratios of VNQ and JEPI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VNQ vs. JEPI - Drawdown Comparison

The maximum VNQ drawdown since its inception was -73.07%, which is greater than JEPI's maximum drawdown of -13.71%. Use the drawdown chart below to compare losses from any high point for VNQ and JEPI.

Drawdown Indicators

	VNQ	JEPI	Difference
Max Drawdown Largest peak-to-trough decline	-73.07%	-13.71%	-59.36%
Max Drawdown (1Y) Largest decline over 1 year	-8.34%	-6.68%	-1.66%
Max Drawdown (3Y) Largest decline over 3 years	-17.46%	-13.26%	-4.20%
Max Drawdown (5Y) Largest decline over 5 years	-34.48%	-13.71%	-20.77%
Max Drawdown (10Y) Largest decline over 10 years	-42.40%	—	—
Current Drawdown Current decline from peak	0.00%	-3.75%	+3.75%
Average Drawdown Average peak-to-trough decline	-13.61%	-2.13%	-11.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.65%	2.20%	+0.45%

Volatility

VNQ vs. JEPI - Volatility Comparison

Vanguard Real Estate ETF (VNQ) has a higher volatility of 4.72% compared to JPMorgan Equity Premium Income ETF (JEPI) at 2.05%. This indicates that VNQ's price experiences larger fluctuations and is considered to be riskier than JEPI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VNQ	JEPI	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.72%	2.05%	+2.67%
Volatility (6M) Calculated over the trailing 6-month period	9.77%	6.23%	+3.54%
Volatility (1Y) Calculated over the trailing 1-year period	13.54%	8.02%	+5.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.84%	11.08%	+7.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.72%	10.79%	+9.93%

VNQ vs. JEPI - Expense Ratio Comparison

VNQ has a 0.13% expense ratio, which is lower than JEPI's 0.35% expense ratio.

Dividends

VNQ vs. JEPI - Dividend Comparison

VNQ's dividend yield for the trailing twelve months is around 3.54%, less than JEPI's 8.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
JEPI JPMorgan Equity Premium Income ETF	8.18%	8.25%	7.33%	8.40%	11.68%	6.59%	5.79%	0.00%	0.00%	0.00%	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

Can I hold both VNQ and JEPI in my portfolio?

VNQ and JEPI have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VNQ or JEPI?

VNQ has higher volatility (4.72%) compared to JEPI (2.05%). In terms of maximum drawdown, VNQ dropped -73.07% vs JEPI's -13.71%.

Which ETF is better, VNQ or JEPI?

On 5-year performance, JEPI leads with 7.45% vs 2.55% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, JEPI has been the lower-risk option at 2.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VNQ or JEPI?

Over the 5-year period, JEPI has performed better with a 7.45% return vs 2.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VNQ or JEPI?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.35% for JEPI.

Which ETF pays a higher dividend yield, VNQ or JEPI?

JEPI has the higher dividend yield at 8.18%, compared with 3.54% for VNQ.

What is the main difference between VNQ and JEPI?

VNQ is categorized as REIT, while JEPI is Dividend. They also come from different issuers: Vanguard and JPMorgan. Their fees differ too: 0.13% for VNQ and 0.35% for JEPI.

Which has better risk-adjusted returns?

VNQ currently has the higher Sharpe Ratio (0.96 vs 0.95), 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.