VNQ vs. VXUS
VNQ (Vanguard Real Estate ETF) and VXUS (Vanguard Total International Stock ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while VXUS is a Global Equities fund tracking the FTSE Global All Cap ex US Index. Both are passively managed. Over the past 10 years, VNQ returned 5.44%/yr vs 10.23%/yr for VXUS. A 0.55 correlation means they provide meaningful diversification when combined. VNQ charges 0.13%/yr vs 0.05%/yr for VXUS.
Performance
VNQ vs. VXUS - Performance Comparison
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Returns By Period
In the year-to-date period, VNQ achieves a 11.77% return, which is significantly lower than VXUS's 12.51% return. Over the past 10 years, VNQ has underperformed VXUS with an annualized return of 5.44%, while VXUS has yielded a comparatively higher 10.23% annualized return.
VNQ
- 1D
- 1.31%
- 1M
- 1.13%
- YTD
- 11.77%
- 6M
- 12.16%
- 1Y
- 11.59%
- 3Y*
- 11.30%
- 5Y*
- 2.83%
- 10Y*
- 5.44%
VXUS
- 1D
- -3.04%
- 1M
- 0.39%
- YTD
- 12.51%
- 6M
- 12.35%
- 1Y
- 29.41%
- 3Y*
- 18.90%
- 5Y*
- 8.35%
- 10Y*
- 10.23%
VNQ vs. VXUS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 11.77% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
VXUS Vanguard Total International Stock ETF | 12.51% | 32.35% | 5.08% | 15.86% | -16.08% | 8.98% | 10.66% | 21.75% | -14.43% | 27.46% |
Correlation
The correlation between VNQ and VXUS is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.40 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.51 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.56 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.51 |
Correlation (All Time) Calculated using the full available price history since Jan 28, 2011 | 0.55 |
The correlation between VNQ and VXUS shifts across timeframes, from 0.40 (1 year) to 0.56 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VNQ vs. VXUS — Risk / Return Rank
VNQ
VXUS
VNQ vs. VXUS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and Vanguard Total International Stock ETF (VXUS). 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 | VXUS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.96 | ||
| Sortino ratioReturn per unit of downside risk | -1.23 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.34 | -0.18 |
| Calmar ratioReturn relative to maximum drawdown | 1.40 | 2.62 | -1.22 |
| Martin ratioReturn relative to average drawdown | 4.37 | 10.07 | -5.70 |
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Drawdowns
VNQ vs. VXUS - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than VXUS's maximum drawdown of -35.97%. Use the drawdown chart below to compare losses from any high point for VNQ and VXUS.
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Drawdown Indicators
| VNQ | VXUS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -35.97% | -37.10% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -11.27% | +2.93% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -13.58% | -3.88% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -29.44% | -5.04% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -35.97% | -6.43% |
Current DrawdownCurrent decline from peak | -0.66% | -3.04% | +2.38% |
Average DrawdownAverage peak-to-trough decline | -13.60% | -8.20% | -5.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.66% | 2.93% | -0.27% |
Volatility
VNQ vs. VXUS - Volatility Comparison
The current volatility for Vanguard Real Estate ETF (VNQ) is 5.19%, while Vanguard Total International Stock ETF (VXUS) has a volatility of 7.07%. This indicates that VNQ experiences smaller price fluctuations and is considered to be less risky than VXUS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VNQ | VXUS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.19% | 7.07% | -1.88% |
Volatility (6M)Calculated over the trailing 6-month period | 10.20% | 14.44% | -4.24% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.84% | 16.36% | -2.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.86% | 16.27% | +2.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.75% | 17.03% | +3.72% |
VNQ vs. VXUS - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is higher than VXUS's 0.05% 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. VXUS - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.56%, more than VXUS's 2.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 3.56% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
VXUS Vanguard Total International Stock ETF | 2.59% | 3.18% | 3.37% | 3.24% | 3.09% | 3.10% | 2.14% | 3.06% | 3.18% | 2.73% | 2.93% | 2.83% |
Frequently Asked Questions
VNQ and VXUS have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VXUS has higher volatility (7.07%) compared to VNQ (5.19%). In terms of maximum drawdown, VNQ dropped -73.07% vs VXUS's -35.97%.
On 10-year performance, VXUS leads with 10.23% vs 5.44% for VNQ. On fees, VXUS is cheaper at 0.05% per year. On volatility, VNQ has been the lower-risk option at 5.19%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VXUS has performed better with a 10.23% return vs 5.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VXUS is cheaper with a 0.05% expense ratio, compared with 0.13% for VNQ.
VNQ has the higher dividend yield at 3.56%, compared with 2.59% for VXUS.
VNQ is categorized as REIT, while VXUS is Global Equities. VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while VXUS tracks FTSE Global All Cap ex US Index. Their fees differ too: 0.13% for VNQ and 0.05% for VXUS.
VXUS currently has the higher Sharpe Ratio (1.81 vs 0.85), 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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