VNQ vs. VGT
VNQ (Vanguard Real Estate ETF) and VGT (Vanguard Information Technology ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. Both are passively managed. Over the past 10 years, VNQ returned 5.35%/yr vs 25.39%/yr for VGT. A 0.52 correlation means they provide meaningful diversification when combined. VNQ charges 0.13%/yr vs 0.09%/yr for VGT.
Performance
VNQ vs. VGT - 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 VGT's 22.32% return. Over the past 10 years, VNQ has underperformed VGT with an annualized return of 5.35%, while VGT has yielded a comparatively higher 25.39% annualized return.
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%
VGT
- 1D
- -0.81%
- 1M
- -0.54%
- YTD
- 22.32%
- 6M
- 20.31%
- 1Y
- 43.06%
- 3Y*
- 29.77%
- 5Y*
- 19.33%
- 10Y*
- 25.39%
VNQ vs. VGT - 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% |
VGT Vanguard Information Technology ETF | 22.32% | 21.77% | 29.30% | 52.66% | -29.70% | 30.45% | 46.04% | 48.62% | 2.46% | 37.08% |
Correlation
The correlation between VNQ and VGT is 0.05, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.05 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.24 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.42 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.42 |
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004 | 0.52 |
Over the past year, the correlation between VNQ and VGT has dropped to 0.05 - well below their long-term average of 0.52, suggesting their price drivers have been diverging.
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Return for Risk
VNQ vs. VGT — Risk / Return Rank
VNQ
VGT
VNQ vs. VGT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and Vanguard Information Technology ETF (VGT). 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 | VGT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.16 | ||
| Sortino ratioReturn per unit of downside risk | -1.33 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.32 | -0.18 |
| Calmar ratioReturn relative to maximum drawdown | 1.24 | 2.64 | -1.39 |
| Martin ratioReturn relative to average drawdown | 3.92 | 8.02 | -4.09 |
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Drawdowns
VNQ vs. VGT - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than VGT's maximum drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for VNQ and VGT.
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Drawdown Indicators
| VNQ | VGT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -54.63% | -18.44% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -16.40% | +8.06% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -27.23% | +9.77% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -35.07% | +0.59% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -35.07% | -7.33% |
Current DrawdownCurrent decline from peak | -1.52% | -8.46% | +6.94% |
Average DrawdownAverage peak-to-trough decline | -13.60% | -7.95% | -5.65% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.66% | 5.39% | -2.73% |
Volatility
VNQ vs. VGT - Volatility Comparison
The current volatility for Vanguard Real Estate ETF (VNQ) is 5.27%, while Vanguard Information Technology ETF (VGT) has a volatility of 11.37%. This indicates that VNQ experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VNQ | VGT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.27% | 11.37% | -6.10% |
Volatility (6M)Calculated over the trailing 6-month period | 10.24% | 18.52% | -8.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.79% | 22.73% | -8.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.87% | 25.55% | -6.68% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.75% | 24.76% | -4.01% |
VNQ vs. VGT - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is higher than VGT's 0.09% 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. VGT - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.59%, more than VGT's 0.33% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGT Vanguard Information Technology ETF | 0.33% | 0.40% | 0.60% | 0.65% | 0.91% | 0.64% | 0.82% | 1.11% | 1.29% | 0.99% | 1.31% | 1.28% |
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
VNQ and VGT have a correlation of 0.05, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VGT has higher volatility (11.37%) compared to VNQ (5.27%). In terms of maximum drawdown, VNQ dropped -73.07% vs VGT's -54.63%.
On 10-year performance, VGT leads with 25.39% vs 5.35% for VNQ. On fees, VGT is cheaper at 0.09% 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, VGT has performed better with a 25.39% return vs 5.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGT is cheaper with a 0.09% expense ratio, compared with 0.13% for VNQ.
VNQ has the higher dividend yield at 3.59%, compared with 0.33% for VGT.
VNQ is categorized as REIT, while VGT is Technology Equities. VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while VGT tracks MSCI USA IMI Information Technology 25/50 Index. Their fees differ too: 0.13% for VNQ and 0.09% for VGT.
VGT currently has the higher Sharpe Ratio (1.91 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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