VNQ vs. MS
VNQ (Vanguard Real Estate ETF) is REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while MS (Morgan Stanley) is a stock. Over the past 10 years, VNQ returned 4.89%/yr vs 25.48%/yr for MS. At a 0.46 correlation, their price movements are largely independent.
Performance
VNQ vs. MS - Performance Comparison
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Returns By Period
In the year-to-date period, VNQ achieves a 14.62% return, which is significantly lower than MS's 20.12% return. Over the past 10 years, VNQ has underperformed MS with an annualized return of 4.89%, while MS has yielded a comparatively higher 25.48% annualized return.
VNQ
- 1D
- -0.54%
- 1M
- 5.02%
- 6M
- 9.51%
- YTD
- 14.62%
- 1Y
- 14.89%
- 3Y*
- 9.14%
- 5Y*
- 2.64%
- 10Y*
- 4.89%
- ALL TIME*
- 7.76%
MS
- 1D
- -2.12%
- 1M
- -5.48%
- 6M
- 12.77%
- YTD
- 20.12%
- 1Y
- 53.40%
- 3Y*
- 35.16%
- 5Y*
- 20.96%
- 10Y*
- 25.48%
- ALL TIME*
- 13.01%
VNQ vs. MS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 14.62% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
MS Morgan Stanley | 20.12% | 45.16% | 39.73% | 13.93% | -10.34% | 46.65% | 38.09% | 32.67% | -22.76% | 26.61% |
Correlation
The correlation between VNQ and MS is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.21 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.37 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.36 |
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004 | 0.46 |
Over the past year, the correlation between VNQ and MS has dropped to 0.21 - well below their long-term average of 0.46, suggesting their price drivers have been diverging.
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Return for Risk
VNQ vs. MS — Risk / Return Rank
VNQ
MS
VNQ vs. MS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and Morgan Stanley (MS). 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 | MS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.91 | ||
| Sortino ratioReturn per unit of downside risk | -1.00 | ||
| Omega ratioGain probability vs. loss probability | 1.19 | 1.34 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 1.79 | 2.85 | -1.06 |
| Martin ratioReturn relative to average drawdown | 5.63 | 9.21 | -3.58 |
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Drawdowns
VNQ vs. MS - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, smaller than the maximum MS drawdown of -88.12%. Use the drawdown chart below to compare losses from any high point for VNQ and MS.
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Drawdown Indicators
| VNQ | MS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -88.12% | +15.05% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -18.83% | +10.49% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -29.24% | +11.78% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -32.38% | -2.10% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -51.33% | +8.93% |
Current DrawdownCurrent decline from peak | -0.59% | -7.71% | +7.12% |
Average DrawdownAverage peak-to-trough decline | -13.56% | -33.60% | +20.04% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.65% | 5.82% | -3.17% |
Volatility
VNQ vs. MS - Volatility Comparison
The current volatility for Vanguard Real Estate ETF (VNQ) is 4.55%, while Morgan Stanley (MS) has a volatility of 9.63%. This indicates that VNQ experiences smaller price fluctuations and is considered to be less risky than MS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VNQ | MS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.55% | 9.63% | -5.08% |
Volatility (6M)Calculated over the trailing 6-month period | 10.81% | 22.21% | -11.40% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.01% | 27.22% | -13.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.87% | 28.76% | -9.89% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.76% | 31.32% | -10.56% |
Dividends
VNQ vs. MS - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.49%, more than MS's 1.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MS Morgan Stanley | 1.90% | 2.17% | 2.82% | 3.49% | 3.47% | 2.14% | 2.04% | 2.54% | 2.77% | 1.72% | 1.66% | 1.73% |
VNQ Vanguard Real Estate ETF | 3.49% | 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 MS have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
MS has higher volatility (9.63%) compared to VNQ (4.55%). In terms of maximum drawdown, VNQ dropped -73.07% vs MS's -88.12%.
MS currently has the higher Sharpe Ratio (1.98 vs 1.07), 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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