VNQ vs. REET
VNQ (Vanguard Real Estate ETF) and REET (iShares Global REIT ETF) are both REIT funds - VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index while REET tracks the FTSE EPRA/NAREIT Global REIT Index. Both are passively managed. Over the past 10 years, VNQ returned 5.44%/yr vs 4.37%/yr for REET. Their correlation of 0.94 suggests significant overlap in exposure. VNQ charges 0.13%/yr vs 0.14%/yr for REET.
Performance
VNQ vs. REET - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with VNQ having a 11.77% return and REET slightly lower at 11.67%. Over the past 10 years, VNQ has outperformed REET with an annualized return of 5.44%, while REET has yielded a comparatively lower 4.37% annualized return.
VNQ
- 1D
- 1.31%
- 1M
- 1.13%
- YTD
- 11.77%
- 6M
- 12.16%
- 1Y
- 11.59%
- 3Y*
- 11.30%
- 5Y*
- 2.83%
- 10Y*
- 5.44%
REET
- 1D
- 0.77%
- 1M
- 1.11%
- YTD
- 11.67%
- 6M
- 12.03%
- 1Y
- 14.10%
- 3Y*
- 11.63%
- 5Y*
- 2.85%
- 10Y*
- 4.37%
VNQ vs. REET - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 11.77% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
REET iShares Global REIT ETF | 11.67% | 7.97% | 2.65% | 10.28% | -24.10% | 32.43% | -10.48% | 24.42% | -5.27% | 7.48% |
Correlation
The correlation between VNQ and REET is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.94 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.96 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.95 |
Correlation (All Time) Calculated using the full available price history since Jul 10, 2014 | 0.94 |
The correlation between VNQ and REET has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.
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Return for Risk
VNQ vs. REET — Risk / Return Rank
VNQ
REET
VNQ vs. REET - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and iShares Global REIT ETF (REET). 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 | REET | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.29 | ||
| Sortino ratioReturn per unit of downside risk | -0.36 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.20 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.40 | 1.57 | -0.17 |
| Martin ratioReturn relative to average drawdown | 4.37 | 5.60 | -1.23 |
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Drawdowns
VNQ vs. REET - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than REET's maximum drawdown of -44.59%. Use the drawdown chart below to compare losses from any high point for VNQ and REET.
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Drawdown Indicators
| VNQ | REET | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -44.59% | -28.48% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -9.04% | +0.70% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -18.02% | +0.56% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -32.11% | -2.37% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -44.59% | +2.19% |
Current DrawdownCurrent decline from peak | -0.66% | -0.66% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -13.60% | -9.75% | -3.85% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.66% | 2.52% | +0.14% |
Volatility
VNQ vs. REET - Volatility Comparison
Vanguard Real Estate ETF (VNQ) has a higher volatility of 5.19% compared to iShares Global REIT ETF (REET) at 4.36%. This indicates that VNQ's price experiences larger fluctuations and is considered to be riskier than REET based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VNQ | REET | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.19% | 4.36% | +0.83% |
Volatility (6M)Calculated over the trailing 6-month period | 10.20% | 9.39% | +0.81% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.84% | 12.52% | +1.32% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.86% | 16.97% | +1.89% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.75% | 18.85% | +1.90% |
VNQ vs. REET - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is lower than REET's 0.14% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
VNQ vs. REET - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.56%, more than REET's 3.37% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
REET iShares Global REIT ETF | 3.37% | 3.67% | 3.64% | 3.27% | 2.43% | 3.18% | 2.65% | 5.25% | 5.73% | 3.84% | 5.37% | 3.56% |
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
With a correlation of 0.94, VNQ and REET move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
VNQ has higher volatility (5.19%) compared to REET (4.36%). In terms of maximum drawdown, VNQ dropped -73.07% vs REET's -44.59%.
On 10-year performance, VNQ leads with 5.44% vs 4.37% for REET. On fees, VNQ is cheaper at 0.13% per year. On volatility, REET has been the lower-risk option at 4.36%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VNQ has performed better with a 5.44% return vs 4.37%. 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 0.14% for REET.
VNQ has the higher dividend yield at 3.56%, compared with 3.37% for REET.
VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while REET tracks FTSE EPRA/NAREIT Global REIT Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.13% for VNQ and 0.14% for REET.
REET currently has the higher Sharpe Ratio (1.14 vs 0.85), 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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