VNQ vs. VGSIX
VNQ (Vanguard Real Estate ETF) and VGSIX (Vanguard Real Estate Index Fund) are both REIT funds from Vanguard. Over the past 10 years, VNQ returned 5.21%/yr vs 4.86%/yr for VGSIX. With a 0.99 correlation, they move nearly in lockstep. VNQ charges 0.13%/yr vs 0.26%/yr for VGSIX.
Performance
VNQ vs. VGSIX - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with VNQ having a 7.83% return and VGSIX slightly higher at 7.90%. Over the past 10 years, VNQ has outperformed VGSIX with an annualized return of 5.21%, while VGSIX has yielded a comparatively lower 4.86% 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%
VGSIX
- 1D
- 0.45%
- 1M
- -0.95%
- YTD
- 7.90%
- 6M
- 6.81%
- 1Y
- 9.99%
- 3Y*
- 8.39%
- 5Y*
- 1.69%
- 10Y*
- 4.86%
VNQ vs. VGSIX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
VGSIX Vanguard Real Estate Index Fund | 7.90% | 2.04% | 2.67% | 12.97% | -26.29% | 40.18% | -4.87% | 28.74% | -6.14% | 4.80% |
Correlation
The correlation between VNQ and VGSIX is 1.00 - 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 | 1.00 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.99 |
Correlation (5Y) Calculated over the trailing 5-year period | 1.00 |
Correlation (10Y) Calculated over the trailing 10-year period | 1.00 |
Correlation (All Time) Calculated using the full available price history since Sep 30, 2004 | 0.99 |
The correlation between VNQ and VGSIX has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.
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Return for Risk
VNQ vs. VGSIX — Risk / Return Rank
VNQ
VGSIX
VNQ vs. VGSIX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and Vanguard Real Estate Index Fund (VGSIX). 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.
| VNQ | VGSIX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.02 | ||
| Sortino ratioReturn per unit of downside risk | +0.02 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.14 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 1.20 | 1.17 | +0.03 |
| Martin ratioReturn relative to average drawdown | 3.78 | 3.69 | +0.09 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VNQ | VGSIX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.76 | 0.74 | +0.02 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.12 | 0.09 | +0.03 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.25 | 0.23 | +0.02 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.26 | 0.34 | -0.08 |
Drawdowns
VNQ vs. VGSIX - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, roughly equal to the maximum VGSIX drawdown of -73.13%. Use the drawdown chart below to compare losses from any high point for VNQ and VGSIX.
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Drawdown Indicators
| VNQ | VGSIX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -73.13% | +0.06% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -8.32% | -0.02% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -18.62% | +1.16% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -34.58% | +0.10% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -42.35% | -0.05% |
Current DrawdownCurrent decline from peak | -3.75% | -5.88% | +2.13% |
Average DrawdownAverage peak-to-trough decline | -13.63% | -11.88% | -1.75% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.64% | 2.64% | 0.00% |
Volatility
VNQ vs. VGSIX - Volatility Comparison
Vanguard Real Estate ETF (VNQ) and Vanguard Real Estate Index Fund (VGSIX) have volatilities of 3.72% and 3.76%, 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
| VNQ | VGSIX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.72% | 3.76% | -0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 9.26% | 9.31% | -0.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.16% | 13.14% | +0.02% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.80% | 18.88% | -0.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.70% | 20.85% | -0.15% |
VNQ vs. VGSIX - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is lower than VGSIX's 0.26% 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. VGSIX - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.69%, more than VGSIX's 3.55% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGSIX Vanguard Real Estate Index Fund | 3.55% | 2.76% | 2.83% | 3.77% | 3.75% | 2.43% | 3.78% | 3.24% | 4.59% | 4.09% | 4.67% | 3.78% |
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
With a correlation of 1.00, VNQ and VGSIX 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.
VGSIX has higher volatility (3.76%) compared to VNQ (3.72%). In terms of maximum drawdown, VNQ dropped -73.07% vs VGSIX's -73.13%.
VNQ currently has the higher Sharpe Ratio (0.76 vs 0.74), 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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