VNQ vs. XLRE
Compare and contrast key facts about Vanguard Real Estate ETF (VNQ) and Real Estate Select Sector SPDR Fund (XLRE).
VNQ and XLRE are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VNQ is a passively managed fund by Vanguard that tracks the performance of the MSCI US REIT Index. It was launched on Sep 23, 2004. XLRE is a passively managed fund by State Street that tracks the performance of the Real Estate Select Sector Index. It was launched on Oct 7, 2015. Both VNQ and XLRE are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VNQ or XLRE.
Key characteristics
| VNQ | XLRE | |
|---|---|---|
| YTD Return | 11.11% | 12.00% |
| 1Y Return | 38.62% | 39.74% |
| 3Y Return (Ann) | -0.53% | 0.48% |
| 5Y Return (Ann) | 4.10% | 5.70% |
| Sharpe Ratio | 2.28 | 2.35 |
| Sortino Ratio | 3.26 | 3.34 |
| Omega Ratio | 1.41 | 1.42 |
| Calmar Ratio | 1.17 | 1.20 |
| Martin Ratio | 8.94 | 9.81 |
| Ulcer Index | 4.42% | 4.10% |
| Daily Std Dev | 17.31% | 17.13% |
| Max Drawdown | -73.07% | -38.83% |
| Current Drawdown | -8.34% | -7.18% |
Correlation
The correlation between VNQ and XLRE is 0.96, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VNQ vs. XLRE - Performance Comparison
In the year-to-date period, VNQ achieves a 11.11% return, which is significantly lower than XLRE's 12.00% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VNQ vs. XLRE - Expense Ratio Comparison
VNQ has a 0.12% expense ratio, which is lower than XLRE's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VNQ vs. XLRE - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and Real Estate Select Sector SPDR Fund (XLRE). 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.
Dividends
VNQ vs. XLRE - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.82%, more than XLRE's 3.16% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 3.82% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% | 4.32% |
XLRE Real Estate Select Sector SPDR Fund | 3.16% | 3.31% | 3.70% | 2.61% | 3.15% | 3.06% | 3.78% | 3.25% | 4.22% | 1.09% | 0.00% | 0.00% |
Drawdowns
VNQ vs. XLRE - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, which is greater than XLRE's maximum drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for VNQ and XLRE. For additional features, visit the drawdowns tool.
Volatility
VNQ vs. XLRE - Volatility Comparison
Vanguard Real Estate ETF (VNQ) and Real Estate Select Sector SPDR Fund (XLRE) have volatilities of 3.90% and 3.96%, 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.