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VNQ vs. RWR
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

VNQ vs. RWR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Real Estate ETF (VNQ) and SPDR Dow Jones REIT ETF (RWR). 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 10.80% return, which is significantly lower than RWR's 16.42% return. Both investments have delivered pretty close results over the past 10 years, with VNQ having a 5.35% annualized return and RWR not far ahead at 5.53%.


VNQ

1D
-0.87%
1M
0.25%
YTD
10.80%
6M
10.46%
1Y
10.33%
3Y*
10.98%
5Y*
2.52%
10Y*
5.35%

RWR

1D
0.25%
1M
2.21%
YTD
16.42%
6M
15.89%
1Y
19.36%
3Y*
13.72%
5Y*
4.85%
10Y*
5.53%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VNQ vs. RWR - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
VNQ
Vanguard Real Estate ETF
10.80%3.24%4.81%11.85%-26.25%40.54%-4.61%28.91%-6.03%4.90%
RWR
SPDR Dow Jones REIT ETF
16.42%3.20%7.74%13.76%-26.09%45.47%-11.40%22.71%-4.47%3.47%

Correlation

The correlation between VNQ and RWR is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.


Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.95

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

0.97

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

0.98

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

0.98

Correlation (All Time)
Calculated using the full available price history since Sep 29, 2004

0.98

The correlation between VNQ and RWR has been stable across timeframes, ranging from 0.95 to 0.98 - a consistent structural relationship.

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Return for Risk

VNQ vs. RWR — Risk / Return Rank

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

VNQ
VNQ Risk / Return Rank: 2424
Overall Rank
VNQ Sharpe Ratio Rank: 2323
Sharpe Ratio Rank
VNQ Sortino Ratio Rank: 2121
Sortino Ratio Rank
VNQ Omega Ratio Rank: 2121
Omega Ratio Rank
VNQ Calmar Ratio Rank: 2727
Calmar Ratio Rank
VNQ Martin Ratio Rank: 3030
Martin Ratio Rank

RWR
RWR Risk / Return Rank: 4747
Overall Rank
RWR Sharpe Ratio Rank: 4444
Sharpe Ratio Rank
RWR Sortino Ratio Rank: 4141
Sortino Ratio Rank
RWR Omega Ratio Rank: 4040
Omega Ratio Rank
RWR Calmar Ratio Rank: 5555
Calmar Ratio Rank
RWR Martin Ratio Rank: 5353
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. RWR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and SPDR Dow Jones REIT ETF (RWR). 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.


VNQRWRDifference
Sharpe ratioReturn per unit of total volatility

-0.64

Sortino ratioReturn per unit of downside risk

-0.81

Omega ratioGain probability vs. loss probability

1.14

1.24

-0.10

Calmar ratioReturn relative to maximum drawdown

1.24

2.42

-1.18

Martin ratioReturn relative to average drawdown

3.92

8.24

-4.32

VNQ vs. RWR - Sharpe Ratio Comparison

The current VNQ Sharpe Ratio is 0.75, which is lower than the RWR Sharpe Ratio of 1.39. The chart below compares the historical Sharpe Ratios of VNQ and RWR, 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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Drawdowns

VNQ vs. RWR - Drawdown Comparison

The maximum VNQ drawdown since its inception was -73.07%, roughly equal to the maximum RWR drawdown of -74.92%. Use the drawdown chart below to compare losses from any high point for VNQ and RWR.


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Drawdown Indicators


VNQRWRDifference

Max Drawdown

Largest peak-to-trough decline

-73.07%

-74.92%

+1.85%

Max Drawdown (1Y)

Largest decline over 1 year

-8.34%

-8.04%

-0.30%

Max Drawdown (3Y)

Largest decline over 3 years

-17.46%

-18.85%

+1.39%

Max Drawdown (5Y)

Largest decline over 5 years

-34.48%

-32.58%

-1.90%

Max Drawdown (10Y)

Largest decline over 10 years

-42.40%

-44.39%

+1.99%

Current Drawdown

Current decline from peak

-1.52%

-0.21%

-1.31%

Average Drawdown

Average peak-to-trough decline

-13.60%

-13.08%

-0.52%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.66%

2.37%

+0.29%

Volatility

VNQ vs. RWR - Volatility Comparison

Vanguard Real Estate ETF (VNQ) and SPDR Dow Jones REIT ETF (RWR) have volatilities of 5.27% and 5.42%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


VNQRWRDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.27%

5.42%

-0.15%

Volatility (6M)

Calculated over the trailing 6-month period

10.24%

10.35%

-0.11%

Volatility (1Y)

Calculated over the trailing 1-year period

13.79%

13.99%

-0.20%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.87%

19.05%

-0.18%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.75%

21.55%

-0.80%

VNQ vs. RWR - Expense Ratio Comparison

VNQ has a 0.13% expense ratio, which is lower than RWR's 0.25% 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. RWR - Dividend Comparison

VNQ's dividend yield for the trailing twelve months is around 3.59%, more than RWR's 3.36% yield.


PositionTTM20252024202320222021202020192018201720162015
RWR
SPDR Dow Jones REIT ETF
3.36%3.78%3.76%3.75%3.81%2.79%3.73%3.36%4.19%3.05%4.39%3.17%
VNQ
Vanguard Real Estate ETF
3.59%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 0.95, VNQ and RWR 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.

RWR has higher volatility (5.42%) compared to VNQ (5.27%). In terms of maximum drawdown, VNQ dropped -73.07% vs RWR's -74.92%.

On 10-year performance, RWR leads with 5.53% vs 5.35% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 5.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, RWR has performed better with a 5.53% return vs 5.35%. 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 0.25% for RWR.

VNQ has the higher dividend yield at 3.59%, compared with 3.36% for RWR.

VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while RWR tracks Dow Jones U.S. Select REIT Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.13% for VNQ and 0.25% for RWR.

RWR currently has the higher Sharpe Ratio (1.39 vs 0.75), 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.

Portfolio Optimizer

Find the right allocation for VNQ and RWR

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

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