VNQ vs. VIOV
VNQ (Vanguard Real Estate ETF) and VIOV (Vanguard S&P Small-Cap 600 Value ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while VIOV is a Small Cap Value Equities fund tracking the S&P SmallCap 600 Value Index. Both are passively managed. Over the past 10 years, VNQ returned 5.35%/yr vs 10.72%/yr for VIOV. A 0.58 correlation means they provide meaningful diversification when combined. VNQ charges 0.13%/yr vs 0.10%/yr for VIOV.
Performance
VNQ vs. VIOV - 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 VIOV's 18.17% return. Over the past 10 years, VNQ has underperformed VIOV with an annualized return of 5.35%, while VIOV has yielded a comparatively higher 10.72% 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%
VIOV
- 1D
- 0.54%
- 1M
- 3.50%
- YTD
- 18.17%
- 6M
- 16.21%
- 1Y
- 36.94%
- 3Y*
- 15.78%
- 5Y*
- 6.41%
- 10Y*
- 10.72%
VNQ vs. VIOV - 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% |
VIOV Vanguard S&P Small-Cap 600 Value ETF | 18.17% | 6.63% | 7.44% | 15.36% | -11.37% | 30.67% | 2.81% | 24.44% | -12.85% | 11.54% |
Correlation
The correlation between VNQ and VIOV is 0.56, 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 | 0.56 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.66 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.68 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Sep 9, 2010 | 0.58 |
The correlation between VNQ and VIOV shifts across timeframes, from 0.56 (1 year) to 0.68 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VNQ vs. VIOV — Risk / Return Rank
VNQ
VIOV
VNQ vs. VIOV - 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 Value ETF (VIOV). 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 | VIOV | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.27 | ||
| Sortino ratioReturn per unit of downside risk | -1.79 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.35 | -0.21 |
| Calmar ratioReturn relative to maximum drawdown | 1.24 | 3.98 | -2.74 |
| Martin ratioReturn relative to average drawdown | 3.92 | 13.03 | -9.11 |
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Drawdowns
VNQ vs. VIOV - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than VIOV's maximum drawdown of -47.36%. Use the drawdown chart below to compare losses from any high point for VNQ and VIOV.
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Drawdown Indicators
| VNQ | VIOV | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -47.36% | -25.71% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -9.33% | +0.99% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -28.44% | +10.98% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -28.44% | -6.04% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -47.36% | +4.96% |
Current DrawdownCurrent decline from peak | -1.52% | -1.05% | -0.47% |
Average DrawdownAverage peak-to-trough decline | -13.60% | -7.36% | -6.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.66% | 2.84% | -0.18% |
Volatility
VNQ vs. VIOV - Volatility Comparison
Vanguard Real Estate ETF (VNQ) has a higher volatility of 5.27% compared to Vanguard S&P Small-Cap 600 Value ETF (VIOV) at 4.71%. This indicates that VNQ's price experiences larger fluctuations and is considered to be riskier than VIOV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VNQ | VIOV | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.27% | 4.71% | +0.56% |
Volatility (6M)Calculated over the trailing 6-month period | 10.24% | 11.82% | -1.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.79% | 18.43% | -4.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.87% | 21.89% | -3.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.75% | 23.88% | -3.13% |
VNQ vs. VIOV - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is higher than VIOV'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. VIOV - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.59%, more than VIOV's 1.55% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VIOV Vanguard S&P Small-Cap 600 Value ETF | 1.55% | 1.69% | 1.78% | 2.18% | 1.81% | 1.59% | 1.42% | 1.60% | 1.76% | 1.43% | 1.17% | 1.32% |
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 VIOV have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VNQ has higher volatility (5.27%) compared to VIOV (4.71%). In terms of maximum drawdown, VNQ dropped -73.07% vs VIOV's -47.36%.
On 10-year performance, VIOV leads with 10.72% vs 5.35% for VNQ. On fees, VIOV is cheaper at 0.10% per year. On volatility, VIOV has been the lower-risk option at 4.71%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VIOV has performed better with a 10.72% return vs 5.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VIOV is cheaper with a 0.10% expense ratio, compared with 0.13% for VNQ.
VNQ has the higher dividend yield at 3.59%, compared with 1.55% for VIOV.
VNQ is categorized as REIT, while VIOV is Small Cap Value Equities. VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while VIOV tracks S&P SmallCap 600 Value Index. Their fees differ too: 0.13% for VNQ and 0.10% for VIOV.
VIOV currently has the higher Sharpe Ratio (2.02 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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