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VNQ vs. REZ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VNQ vs. REZ

Last updated Jun 4, 2026

VNQ (Vanguard Real Estate ETF) and REZ (iShares Residential Real Estate ETF) are both REIT funds - VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index while REZ tracks the FTSE NAREIT All Residential Capped Index. Both are passively managed. Over the past 10 years, VNQ returned 5.21%/yr vs 6.37%/yr for REZ. Their correlation of 0.90 suggests significant overlap in exposure. VNQ charges 0.13%/yr vs 0.48%/yr for REZ.

Performance

VNQ vs. REZ - Performance Comparison

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

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Returns By Period

In the year-to-date period, VNQ achieves a 7.83% return, which is significantly higher than REZ's 6.86% return. Over the past 10 years, VNQ has underperformed REZ with an annualized return of 5.21%, while REZ has yielded a comparatively higher 6.37% annualized return.

VNQ

1D
-0.12%
1M
-1.10%
YTD
7.83%
6M
6.75%
1Y
9.97%
3Y*
9.15%
5Y*
2.18%
10Y*
5.21%

REZ

1D
0.48%
1M
-1.45%
YTD
6.86%
6M
3.65%
1Y
9.32%
3Y*
9.90%
5Y*
3.98%
10Y*
6.37%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VNQ vs. REZ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VNQ
Vanguard Real Estate ETF		7.83%3.24%4.81%11.85%-26.25%40.54%-4.61%28.91%-6.03%4.90%
REZ
iShares Residential Real Estate ETF		6.86%4.80%12.73%10.97%-28.31%47.86%-6.62%24.49%3.89%3.87%

Correlation

The correlation between VNQ and REZ is 0.87, 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

0.87

Correlation (3Y)
Calculated over the trailing 3-year period

0.91

Correlation (5Y)
Calculated over the trailing 5-year period

0.92

Correlation (10Y)
Calculated over the trailing 10-year period

0.92

Correlation (All Time)
Calculated using the full available price history since May 7, 2007

0.90

The correlation between VNQ and REZ has been stable across timeframes, ranging from 0.87 to 0.92 - a consistent structural relationship.

VNQ vs. REZ - Sectors Allocation Comparison

Sectors
VNQ
REZ

Real Estate

97.3%
99.4%

Basic Materials

1.1%

-

Communication Services

0.6%

-

Technology

0.3%

-

Energy

0.1%

-

Financial Services

0.1%
0.1%

Industrials

0.0%

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Healthcare

-

-

Utilities

-

-

Real Estate

VNQ
97.3%
REZ
99.4%

Basic Materials

VNQ
1.1%
REZ

-

Communication Services

VNQ
0.6%
REZ

-

Technology

VNQ
0.3%
REZ

-

Energy

VNQ
0.1%
REZ

-

Financial Services

VNQ
0.1%
REZ
0.1%

Industrials

VNQ
0.0%
REZ

-

Consumer Cyclical

VNQ

-

REZ

-

Consumer Defensive

VNQ

-

REZ

-

Healthcare

VNQ

-

REZ

-

Utilities

VNQ

-

REZ

-

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Real Estate ETF

iShares Residential Real Estate ETF

Often compared with VNQ:
VNQ vs. SCHHVNQ vs. VOOVNQ vs. SPYVNQ vs. XLREVNQ vs. VNQIVNQ vs. SCHDVNQ vs. REET
Often compared with REZ:
REZ vs. IYRREZ vs. HAUSREZ vs. NUREREZ vs. AVBREZ vs. UREREZ vs. FRESXREZ vs. PBJ

Return for Risk

VNQ vs. REZ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VNQ
VNQ Risk / Return Rank: 2323
Overall Rank
VNQ Sharpe Ratio Rank: 2222
Sharpe Ratio Rank
VNQ Sortino Ratio Rank: 2121
Sortino Ratio Rank
VNQ Omega Ratio Rank: 2020
Omega Ratio Rank
VNQ Calmar Ratio Rank: 2525
Calmar Ratio Rank
VNQ Martin Ratio Rank: 2727
Martin Ratio Rank
REZ
REZ Risk / Return Rank: 2020
Overall Rank
REZ Sharpe Ratio Rank: 1919
Sharpe Ratio Rank
REZ Sortino Ratio Rank: 1818
Sortino Ratio Rank
REZ Omega Ratio Rank: 1818
Omega Ratio Rank
REZ Calmar Ratio Rank: 2323
Calmar Ratio Rank
REZ Martin Ratio Rank: 2424
Martin Ratio Rank
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. REZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and iShares Residential Real Estate ETF (REZ). 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.

VNQREZDifference
Sharpe ratioReturn per unit of total volatility
0.76
0.66

+0.10

Sortino ratioReturn per unit of downside risk
1.12
0.97

+0.15

Omega ratioGain probability vs. loss probability

1.14

1.12

+0.02

Calmar ratioReturn relative to maximum drawdown

1.20

1.07

+0.13

Martin ratioReturn relative to average drawdown

3.78

3.27

+0.51

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. REZ - Sharpe Ratio Comparison

The current VNQ Sharpe Ratio is 0.76, which is comparable to the REZ Sharpe Ratio of 0.66. The chart below compares the historical Sharpe Ratios of VNQ and REZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VNQREZDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.76

0.66

+0.10

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.12

0.21

-0.09

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.25

0.30

-0.04

Sharpe Ratio (All Time)

Calculated using the full available price history

0.26

0.24

+0.03

Drawdowns

VNQ vs. REZ - Drawdown Comparison

The maximum VNQ drawdown since its inception was -73.07%, which is greater than REZ's maximum drawdown of -66.87%. Use the drawdown chart below to compare losses from any high point for VNQ and REZ.

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Drawdown Indicators

VNQREZDifference

Max Drawdown

Largest peak-to-trough decline

-73.07%

-66.87%

-6.20%

Max Drawdown (1Y)

Largest decline over 1 year

-8.34%

-8.76%

+0.42%

Max Drawdown (3Y)

Largest decline over 3 years

-17.46%

-18.39%

+0.93%

Max Drawdown (5Y)

Largest decline over 5 years

-34.48%

-35.05%

+0.57%

Max Drawdown (10Y)

Largest decline over 10 years

-42.40%

-44.15%

+1.75%

Current Drawdown

Current decline from peak

-3.75%

-4.21%

+0.46%

Average Drawdown

Average peak-to-trough decline

-13.63%

-12.69%

-0.94%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.64%

2.86%

-0.22%

Volatility

VNQ vs. REZ - Volatility Comparison

The current volatility for Vanguard Real Estate ETF (VNQ) is 3.72%, while iShares Residential Real Estate ETF (REZ) has a volatility of 4.39%. This indicates that VNQ experiences smaller price fluctuations and is considered to be less risky than REZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VNQREZDifference

Volatility (1M)

Calculated over the trailing 1-month period

3.72%

4.39%

-0.67%

Volatility (6M)

Calculated over the trailing 6-month period

9.26%

10.66%

-1.40%

Volatility (1Y)

Calculated over the trailing 1-year period

13.16%

14.32%

-1.16%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.80%

18.91%

-0.11%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.70%

21.52%

-0.82%

VNQ vs. REZ - Expense Ratio Comparison

VNQ has a 0.13% expense ratio, which is lower than REZ's 0.48% expense ratio.

Dividends

VNQ vs. REZ - Dividend Comparison

VNQ's dividend yield for the trailing twelve months is around 3.69%, more than REZ's 2.15% yield.

PositionTTM20252024202320222021202020192018201720162015
REZ
iShares Residential Real Estate ETF		2.15%2.74%2.26%2.94%3.37%1.81%3.17%2.90%3.63%3.57%5.55%3.18%
VNQ
Vanguard Real Estate ETF		3.69%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 REZ have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

REZ has higher volatility (4.39%) compared to VNQ (3.72%). In terms of maximum drawdown, VNQ dropped -73.07% vs REZ's -66.87%.

On 10-year performance, REZ leads with 6.37% vs 5.21% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 3.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, REZ has performed better with a 6.37% return vs 5.21%. 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 0.48% for REZ.

VNQ has the higher dividend yield at 3.69%, compared with 2.15% for REZ.

VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while REZ tracks FTSE NAREIT All Residential Capped Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.13% for VNQ and 0.48% for REZ.

VNQ currently has the higher Sharpe Ratio (0.76 vs 0.66), 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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