VNQ vs. T

Last updated Jun 13, 2026

VNQ (Vanguard Real Estate ETF) is REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while T (AT&T Inc.) is a stock. Over the past 10 years, VNQ returned 5.65%/yr vs 3.33%/yr for T. At a 0.42 correlation, their price movements are largely independent.

Performance

VNQ vs. T - Performance Comparison

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

Returns By Period

In the year-to-date period, VNQ achieves a 12.51% return, which is significantly higher than T's -2.96% return. Over the past 10 years, VNQ has outperformed T with an annualized return of 5.65%, while T has yielded a comparatively lower 3.33% annualized return.

VNQ

• 1D: 0.92%
• 1M: 2.73%
• YTD: 12.51%
• 6M: 12.32%
• 1Y: 12.92%
• 3Y*: 10.14%
• 5Y*: 2.55%
• 10Y*: 5.65%

T

• 1D: 2.52%
• 1M: -4.69%
• YTD: -2.96%
• 6M: -1.93%
• 1Y: -12.96%
• 3Y*: 20.58%
• 5Y*: 7.38%
• 10Y*: 3.33%

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

VNQ vs. T - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VNQ Vanguard Real Estate ETF	12.51%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%
T AT&T Inc.	-2.96%	13.97%	44.08%	-2.74%	5.76%	-8.09%	-21.37%	45.55%	-22.25%	-4.01%

Correlation

The correlation between VNQ and T 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	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.38
Correlation (10Y) Calculated over the trailing 10-year period	0.37
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004	0.42

Over the past year, the correlation between VNQ and T has dropped to 0.21 - well below their long-term average of 0.42, suggesting their price drivers have been diverging.

Return for Risk

VNQ vs. T — Risk / Return Rank

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

VNQ

VNQ Risk / Return Rank: 32
VNQ Sharpe Ratio Rank: 30
VNQ Sortino Ratio Rank: 28
VNQ Omega Ratio Rank: 28
VNQ Calmar Ratio Rank: 35
VNQ Martin Ratio Rank: 36

T

T Risk / Return Rank: 18
T Sharpe Ratio Rank: 17
T Sortino Ratio Rank: 17
T Omega Ratio Rank: 18
T Calmar Ratio Rank: 21
T Martin Ratio Rank: 15

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. T - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and AT&T Inc. (T). 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	T	Difference
Sharpe ratio: Return per unit of total volatility	0.96	-0.59	+1.55
Sortino ratio: Return per unit of downside risk	1.39	-0.72	+2.11
Omega ratio: Gain probability vs. loss probability	1.17	0.92	+0.26
Calmar ratio: Return relative to maximum drawdown	1.56	-0.59	+2.15
Martin ratio: Return relative to average drawdown	4.90	-1.22	+6.12

VNQ vs. T - Sharpe Ratio Comparison

The current VNQ Sharpe Ratio is 0.96, which is higher than the T Sharpe Ratio of -0.59. The chart below compares the historical Sharpe Ratios of VNQ and T, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VNQ vs. T - Drawdown Comparison

The maximum VNQ drawdown since its inception was -73.07%, which is greater than T's maximum drawdown of -64.15%. Use the drawdown chart below to compare losses from any high point for VNQ and T.

Drawdown Indicators

	VNQ	T	Difference
Max Drawdown Largest peak-to-trough decline	-73.07%	-64.15%	-8.92%
Max Drawdown (1Y) Largest decline over 1 year	-8.34%	-21.87%	+13.53%
Max Drawdown (3Y) Largest decline over 3 years	-17.46%	-21.87%	+4.41%
Max Drawdown (5Y) Largest decline over 5 years	-34.48%	-32.01%	-2.47%
Max Drawdown (10Y) Largest decline over 10 years	-42.40%	-42.35%	-0.05%
Current Drawdown Current decline from peak	0.00%	-18.12%	+18.12%
Average Drawdown Average peak-to-trough decline	-13.61%	-15.72%	+2.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.65%	10.64%	-7.99%

Volatility

VNQ vs. T - Volatility Comparison

The current volatility for Vanguard Real Estate ETF (VNQ) is 4.72%, while AT&T Inc. (T) has a volatility of 8.21%. This indicates that VNQ experiences smaller price fluctuations and is considered to be less risky than T based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VNQ	T	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.72%	8.21%	-3.49%
Volatility (6M) Calculated over the trailing 6-month period	9.77%	17.80%	-8.03%
Volatility (1Y) Calculated over the trailing 1-year period	13.54%	22.13%	-8.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.84%	24.01%	-5.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.72%	23.73%	-3.01%

Dividends

VNQ vs. T - Dividend Comparison

VNQ's dividend yield for the trailing twelve months is around 3.54%, less than T's 4.71% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
T AT&T Inc.	4.71%	4.47%	4.87%	6.62%	6.66%	8.46%	7.23%	5.22%	7.01%	5.04%	4.51%	5.46%
VNQ Vanguard Real Estate ETF	3.54%	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

Can I hold both VNQ and T in my portfolio?

VNQ and T 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.

Which is riskier, VNQ or T?

T has higher volatility (8.21%) compared to VNQ (4.72%). In terms of maximum drawdown, VNQ dropped -73.07% vs T's -64.15%.

Which has better risk-adjusted returns?

VNQ currently has the higher Sharpe Ratio (0.96 vs -0.59), 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.