VNQ vs. XLRI

Last updated Jun 25, 2026

VNQ (Vanguard Real Estate ETF) and XLRI (State Street Real Estate Select Sector SPDR Premium Income ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while XLRI is a Derivative Income fund actively managed by State Street. VNQ is passively managed, while XLRI is actively managed. With a 0.96 correlation, they move nearly in lockstep. VNQ charges 0.13%/yr vs 0.35%/yr for XLRI.

Performance

VNQ vs. XLRI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Real Estate ETF (VNQ) and State Street Real Estate Select Sector SPDR Premium Income ETF (XLRI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VNQ achieves a 10.80% return, which is significantly higher than XLRI's 6.39% 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%

XLRI

• 1D: -0.30%
• 1M: 0.93%
• YTD: 6.39%
• 6M: 6.48%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

VNQ vs. XLRI - Yearly Performance Comparison

	2026 (YTD)	2025
VNQ Vanguard Real Estate ETF	10.80%	-1.70%
XLRI State Street Real Estate Select Sector SPDR Premium Income ETF	6.39%	-0.57%

Correlation

The correlation between VNQ and XLRI is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 30, 2025	0.96

Return for Risk

VNQ vs. XLRI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VNQ

VNQ Risk / Return Rank: 24
VNQ Sharpe Ratio Rank: 23
VNQ Sortino Ratio Rank: 21
VNQ Omega Ratio Rank: 21
VNQ Calmar Ratio Rank: 27
VNQ Martin Ratio Rank: 30

XLRI

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VNQ vs. XLRI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and State Street Real Estate Select Sector SPDR Premium Income ETF (XLRI). 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	XLRI	Difference
Sharpe ratio: Return per unit of total volatility	0.75	—	—
Sortino ratio: Return per unit of downside risk	1.11	—	—
Omega ratio: Gain probability vs. loss probability	1.14	—	—
Calmar ratio: Return relative to maximum drawdown	1.24	—	—
Martin ratio: Return relative to average drawdown	3.92	—	—

Drawdowns

VNQ vs. XLRI - Drawdown Comparison

The maximum VNQ drawdown since its inception was -73.07%, which is greater than XLRI's maximum drawdown of -7.12%. Use the drawdown chart below to compare losses from any high point for VNQ and XLRI.

Drawdown Indicators

	VNQ	XLRI	Difference
Max Drawdown Largest peak-to-trough decline	-73.07%	-7.12%	-65.95%
Max Drawdown (1Y) Largest decline over 1 year	-8.34%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-17.46%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-34.48%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-42.40%	—	—
Current Drawdown Current decline from peak	-1.52%	-0.84%	-0.68%
Average Drawdown Average peak-to-trough decline	-13.60%	-1.64%	-11.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.66%	—	—

Volatility

Volatility by Period

	VNQ	XLRI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.27%	—	—
Volatility (6M) Calculated over the trailing 6-month period	10.24%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	13.79%	10.97%	+2.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.87%	10.97%	+7.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.75%	10.97%	+9.78%

VNQ vs. XLRI - Expense Ratio Comparison

VNQ has a 0.13% expense ratio, which is lower than XLRI's 0.35% expense ratio.

Dividends

VNQ vs. XLRI - Dividend Comparison

VNQ's dividend yield for the trailing twelve months is around 3.59%, less than XLRI's 12.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
XLRI State Street Real Estate Select Sector SPDR Premium Income ETF	12.27%	6.85%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VNQ and XLRI in my portfolio?

With a correlation of 0.96, VNQ and XLRI move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which ETF is better, VNQ or XLRI?

On fees, VNQ is cheaper at 0.13% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VNQ or XLRI?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.35% for XLRI.

Which ETF pays a higher dividend yield, VNQ or XLRI?

XLRI has the higher dividend yield at 12.27%, compared with 3.59% for VNQ.

What is the main difference between VNQ and XLRI?

VNQ is categorized as REIT, while XLRI is Derivative Income. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.13% for VNQ and 0.35% for XLRI.