VNQ vs. KBWY

Last updated Apr 3, 2026

Compare and contrast key facts about Vanguard Real Estate ETF (VNQ) and Invesco KBW Premium Yield Equity REIT ETF (KBWY).

VNQ and KBWY are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VNQ is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Real Estate 25/50 Index. It was launched on Sep 23, 2004. KBWY is a passively managed fund by Invesco that tracks the performance of the KBW Premium Yield Equity REIT Index. It was launched on Dec 2, 2010. Both VNQ and KBWY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

VNQ vs. KBWY - Performance Comparison

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

VNQ vs. KBWY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VNQ Vanguard Real Estate ETF	3.06%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%
KBWY Invesco KBW Premium Yield Equity REIT ETF	1.96%	-5.30%	-3.49%	12.88%	-19.00%	31.22%	-25.83%	23.36%	-18.20%	0.81%

Returns By Period

In the year-to-date period, VNQ achieves a 3.06% return, which is significantly higher than KBWY's 1.96% return. Over the past 10 years, VNQ has outperformed KBWY with an annualized return of 4.85%, while KBWY has yielded a comparatively lower 0.39% annualized return.

VNQ

• 1D: 1.36%
• 1M: -4.43%
• YTD: 3.06%
• 6M: 1.04%
• 1Y: 2.95%
• 3Y*: 7.33%
• 5Y*: 3.14%
• 10Y*: 4.85%

KBWY

• 1D: 0.85%
• 1M: -5.05%
• YTD: 1.96%
• 6M: 0.90%
• 1Y: 1.29%
• 3Y*: 3.25%
• 5Y*: -0.12%
• 10Y*: 0.39%

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

VNQ vs. KBWY - Expense Ratio Comparison

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

KBWY

Invesco KBW Premium Yield Equity REIT ETF

VNQ

Vanguard Real Estate ETF

Return for Risk

VNQ vs. KBWY — Risk / Return Rank

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

VNQ

VNQ Risk / Return Rank: 16
VNQ Sharpe Ratio Rank: 15
VNQ Sortino Ratio Rank: 15
VNQ Omega Ratio Rank: 15
VNQ Calmar Ratio Rank: 16
VNQ Martin Ratio Rank: 18

KBWY

KBWY Risk / Return Rank: 13
KBWY Sharpe Ratio Rank: 13
KBWY Sortino Ratio Rank: 13
KBWY Omega Ratio Rank: 12
KBWY Calmar Ratio Rank: 13
KBWY Martin Ratio Rank: 13

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. KBWY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and Invesco KBW Premium Yield Equity REIT ETF (KBWY). 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.

	VNQ	KBWY	Difference
Sharpe ratio Return per unit of total volatility	0.18	0.07	+0.11
Sortino ratio Return per unit of downside risk	0.36	0.23	+0.13
Omega ratio Gain probability vs. loss probability	1.05	1.03	+0.02
Calmar ratio Return relative to maximum drawdown	0.29	0.10	+0.19
Martin ratio Return relative to average drawdown	1.11	0.27	+0.84
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VNQ vs. KBWY - Sharpe Ratio Comparison

The current VNQ Sharpe Ratio is 0.18, which is higher than the KBWY Sharpe Ratio of 0.07. The chart below compares the historical Sharpe Ratios of VNQ and KBWY, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	VNQ	KBWY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.18	0.07	+0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.17	-0.01	+0.17
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.23	0.01	+0.22
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.16	+0.10

Correlation

The correlation between VNQ and KBWY is 0.84, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

VNQ vs. KBWY - Dividend Comparison

VNQ's dividend yield for the trailing twelve months is around 3.86%, less than KBWY's 9.81% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VNQ Vanguard Real Estate ETF	3.86%	3.92%	3.85%	3.95%	3.91%	2.56%	3.93%	3.39%	4.74%	4.23%	4.82%	3.92%
KBWY Invesco KBW Premium Yield Equity REIT ETF	9.81%	9.79%	8.74%	7.90%	7.41%	5.05%	10.35%	6.19%	8.64%	7.25%	6.55%	5.72%

Drawdowns

VNQ vs. KBWY - Drawdown Comparison

The maximum VNQ drawdown since its inception was -73.07%, which is greater than KBWY's maximum drawdown of -57.68%. Use the drawdown chart below to compare losses from any high point for VNQ and KBWY.

Drawdown Indicators

	VNQ	KBWY	Difference
Max Drawdown Largest peak-to-trough decline	-73.07%	-57.68%	-15.39%
Max Drawdown (1Y) Largest decline over 1 year	-9.35%	-9.88%	+0.53%
Max Drawdown (5Y) Largest decline over 5 years	-34.48%	-32.29%	-2.19%
Max Drawdown (10Y) Largest decline over 10 years	-42.40%	-57.68%	+15.28%
Current Drawdown Current decline from peak	-8.01%	-22.33%	+14.32%
Average Drawdown Average peak-to-trough decline	-13.71%	-14.18%	+0.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.22%	4.94%	-1.72%

Volatility

VNQ vs. KBWY - Volatility Comparison

The current volatility for Vanguard Real Estate ETF (VNQ) is 4.84%, while Invesco KBW Premium Yield Equity REIT ETF (KBWY) has a volatility of 5.80%. This indicates that VNQ experiences smaller price fluctuations and is considered to be less risky than KBWY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VNQ	KBWY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.84%	5.80%	-0.96%
Volatility (6M) Calculated over the trailing 6-month period	9.38%	11.74%	-2.36%
Volatility (1Y) Calculated over the trailing 1-year period	16.37%	19.27%	-2.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.80%	21.55%	-2.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.70%	27.03%	-6.33%