VNQ vs. VGSNX
VNQ (Vanguard Real Estate ETF) and VGSNX (Vanguard Real Estate Index Fund Institutional Shares) are both REIT funds from Vanguard. Over the past 10 years, VNQ returned 5.35%/yr vs 5.45%/yr for VGSNX. With a 0.99 correlation, they move nearly in lockstep. VNQ charges 0.13%/yr vs 0.10%/yr for VGSNX.
Performance
VNQ vs. VGSNX - Performance Comparison
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Returns By Period
In the year-to-date period, VNQ achieves a 10.80% return, which is significantly lower than VGSNX's 11.80% return. Both investments have delivered pretty close results over the past 10 years, with VNQ having a 5.35% annualized return and VGSNX not far ahead at 5.45%.
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%
VGSNX
- 1D
- 1.32%
- 1M
- 1.13%
- YTD
- 11.80%
- 6M
- 11.40%
- 1Y
- 11.31%
- 3Y*
- 11.31%
- 5Y*
- 2.87%
- 10Y*
- 5.45%
VNQ vs. VGSNX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
VGSNX Vanguard Real Estate Index Fund Institutional Shares | 11.80% | 3.21% | 3.72% | 13.12% | -26.19% | 40.46% | -4.76% | 28.98% | -5.97% | 4.90% |
Correlation
The correlation between VNQ and VGSNX 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 29, 2004 | 0.99 |
The correlation between VNQ and VGSNX 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. VGSNX — Risk / Return Rank
VNQ
VGSNX
VNQ vs. VGSNX - 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 Institutional Shares (VGSNX). 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 | VGSNX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.10 | ||
| Sortino ratioReturn per unit of downside risk | -0.13 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.16 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 1.24 | 1.41 | -0.16 |
| Martin ratioReturn relative to average drawdown | 3.92 | 4.40 | -0.48 |
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Drawdowns
VNQ vs. VGSNX - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, roughly equal to the maximum VGSNX drawdown of -73.06%. Use the drawdown chart below to compare losses from any high point for VNQ and VGSNX.
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Drawdown Indicators
| VNQ | VGSNX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -73.06% | -0.01% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -8.34% | 0.00% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -17.41% | -0.05% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -34.39% | -0.09% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -42.30% | -0.10% |
Current DrawdownCurrent decline from peak | -1.52% | -0.69% | -0.83% |
Average DrawdownAverage peak-to-trough decline | -13.60% | -13.26% | -0.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.66% | 2.66% | 0.00% |
Volatility
VNQ vs. VGSNX - Volatility Comparison
Vanguard Real Estate ETF (VNQ) and Vanguard Real Estate Index Fund Institutional Shares (VGSNX) have volatilities of 5.27% and 5.18%, 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 | VGSNX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.27% | 5.18% | +0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 10.24% | 10.20% | +0.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.79% | 13.84% | -0.05% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.87% | 18.93% | -0.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.75% | 20.95% | -0.20% |
VNQ vs. VGSNX - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is higher than VGSNX's 0.10% expense ratio. However, 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. VGSNX - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.59%, which matches VGSNX's 3.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGSNX Vanguard Real Estate Index Fund Institutional Shares | 3.58% | 3.94% | 3.87% | 3.93% | 3.94% | 2.57% | 3.95% | 3.40% | 4.75% | 4.26% | 4.84% | 3.94% |
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 1.00, VNQ and VGSNX 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 (5.27%) compared to VGSNX (5.18%). In terms of maximum drawdown, VNQ dropped -73.07% vs VGSNX's -73.06%.
VGSNX currently has the higher Sharpe Ratio (0.85 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.
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