VNQ vs. VIOO
VNQ (Vanguard Real Estate ETF) and VIOO (Vanguard S&P Small-Cap 600 ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while VIOO is a Small Cap Blend Equities fund tracking the S&P SmallCap 600 Index. Both are passively managed. Over the past 10 years, VNQ returned 5.31%/yr vs 11.35%/yr for VIOO. A 0.61 correlation means they provide meaningful diversification when combined. VNQ charges 0.13%/yr vs 0.07%/yr for VIOO.
Performance
VNQ vs. VIOO - Performance Comparison
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Returns By Period
In the year-to-date period, VNQ achieves a 10.32% return, which is significantly lower than VIOO's 19.73% return. Over the past 10 years, VNQ has underperformed VIOO with an annualized return of 5.31%, while VIOO has yielded a comparatively higher 11.35% annualized return.
VNQ
- 1D
- 1.08%
- 1M
- -0.19%
- YTD
- 10.32%
- 6M
- 10.63%
- 1Y
- 11.80%
- 3Y*
- 10.81%
- 5Y*
- 2.52%
- 10Y*
- 5.31%
VIOO
- 1D
- 0.05%
- 1M
- 4.59%
- YTD
- 19.73%
- 6M
- 16.79%
- 1Y
- 36.99%
- 3Y*
- 16.33%
- 5Y*
- 6.65%
- 10Y*
- 11.35%
VNQ vs. VIOO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 10.32% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
VIOO Vanguard S&P Small-Cap 600 ETF | 19.73% | 6.04% | 8.48% | 16.16% | -16.26% | 26.79% | 11.47% | 22.68% | -8.65% | 13.16% |
Correlation
The correlation between VNQ and VIOO is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.58 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.65 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.68 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.60 |
Correlation (All Time) Calculated using the full available price history since Sep 9, 2010 | 0.61 |
The correlation between VNQ and VIOO has been stable across timeframes, ranging from 0.58 to 0.68 - a consistent structural relationship.
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Return for Risk
VNQ vs. VIOO — Risk / Return Rank
VNQ
VIOO
VNQ vs. VIOO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and Vanguard S&P Small-Cap 600 ETF (VIOO). 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 | VIOO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.23 | ||
| Sortino ratioReturn per unit of downside risk | -1.75 | ||
| Omega ratioGain probability vs. loss probability | 1.16 | 1.36 | -0.20 |
| Calmar ratioReturn relative to maximum drawdown | 1.42 | 4.24 | -2.82 |
| Martin ratioReturn relative to average drawdown | 4.45 | 14.31 | -9.86 |
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Drawdowns
VNQ vs. VIOO - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than VIOO's maximum drawdown of -44.15%. Use the drawdown chart below to compare losses from any high point for VNQ and VIOO.
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Drawdown Indicators
| VNQ | VIOO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -44.15% | -28.92% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -8.77% | +0.43% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -27.93% | +10.47% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -27.93% | -6.55% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -44.15% | +1.75% |
Current DrawdownCurrent decline from peak | -1.95% | -0.12% | -1.83% |
Average DrawdownAverage peak-to-trough decline | -13.60% | -7.31% | -6.29% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.66% | 2.59% | +0.07% |
Volatility
VNQ vs. VIOO - Volatility Comparison
Vanguard Real Estate ETF (VNQ) and Vanguard S&P Small-Cap 600 ETF (VIOO) have volatilities of 5.03% and 4.93%, 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 | VIOO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.03% | 4.93% | +0.10% |
Volatility (6M)Calculated over the trailing 6-month period | 10.15% | 12.10% | -1.95% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.81% | 17.80% | -3.99% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.85% | 21.40% | -2.55% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.75% | 23.01% | -2.26% |
VNQ vs. VIOO - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is higher than VIOO's 0.07% 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. VIOO - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.61%, more than VIOO's 1.13% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VIOO Vanguard S&P Small-Cap 600 ETF | 1.13% | 1.36% | 1.48% | 1.47% | 1.51% | 1.16% | 1.09% | 1.37% | 1.32% | 1.11% | 1.06% | 1.26% |
VNQ Vanguard Real Estate ETF | 3.61% | 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 VIOO have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VNQ has higher volatility (5.03%) compared to VIOO (4.93%). In terms of maximum drawdown, VNQ dropped -73.07% vs VIOO's -44.15%.
On 10-year performance, VIOO leads with 11.35% vs 5.31% for VNQ. On fees, VIOO is cheaper at 0.07% per year. On volatility, VIOO has been the lower-risk option at 4.93%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VIOO has performed better with a 11.35% return vs 5.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VIOO is cheaper with a 0.07% expense ratio, compared with 0.13% for VNQ.
VNQ has the higher dividend yield at 3.61%, compared with 1.13% for VIOO.
VNQ is categorized as REIT, while VIOO is Small Cap Blend Equities. VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while VIOO tracks S&P SmallCap 600 Index. Their fees differ too: 0.13% for VNQ and 0.07% for VIOO.
VIOO currently has the higher Sharpe Ratio (2.09 vs 0.86), 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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