VNQI vs. ESGD
VNQI (Vanguard Global ex-U.S. Real Estate ETF) and ESGD (iShares ESG Aware MSCI EAFE ETF) are both exchange-traded funds - VNQI is a REIT fund tracking the S&P Global ex-U.S. Property Index, while ESGD is a Foreign Large Cap Equities fund tracking the MSCI EAFE Extended ESG Focus Index. Both are passively managed. Over the past 5 years, VNQI returned -1.53%/yr vs 8.05%/yr for ESGD. A 0.77 correlation means they provide meaningful diversification when combined. VNQI charges 0.12%/yr vs 0.20%/yr for ESGD.
Performance
VNQI vs. ESGD - Performance Comparison
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Returns By Period
In the year-to-date period, VNQI achieves a -2.64% return, which is significantly lower than ESGD's 8.13% return.
VNQI
- 1D
- 0.84%
- 1M
- -2.15%
- YTD
- -2.64%
- 6M
- -3.08%
- 1Y
- 2.39%
- 3Y*
- 8.99%
- 5Y*
- -1.53%
- 10Y*
- 2.68%
ESGD
- 1D
- -0.12%
- 1M
- 0.05%
- YTD
- 8.13%
- 6M
- 7.64%
- 1Y
- 19.32%
- 3Y*
- 16.04%
- 5Y*
- 8.05%
- 10Y*
- —
VNQI vs. ESGD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQI Vanguard Global ex-U.S. Real Estate ETF | -2.64% | 21.38% | -2.22% | 6.99% | -22.94% | 5.93% | -7.22% | 21.59% | -9.44% | 26.91% |
ESGD iShares ESG Aware MSCI EAFE ETF | 8.13% | 29.63% | 3.95% | 18.53% | -15.17% | 11.79% | 8.20% | 23.12% | -13.33% | 25.10% |
Correlation
The correlation between VNQI and ESGD is 0.78, 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 | 0.78 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.79 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.80 |
Correlation (All Time) Calculated using the full available price history since Jun 30, 2016 | 0.77 |
The correlation between VNQI and ESGD has been stable across timeframes, ranging from 0.77 to 0.80 - a consistent structural relationship.
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Return for Risk
VNQI vs. ESGD — Risk / Return Rank
VNQI
ESGD
VNQI vs. ESGD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Global ex-U.S. Real Estate ETF (VNQI) and iShares ESG Aware MSCI EAFE ETF (ESGD). 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.
| VNQI | ESGD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.05 | ||
| Sortino ratioReturn per unit of downside risk | -1.45 | ||
| Omega ratioGain probability vs. loss probability | 1.04 | 1.23 | -0.18 |
| Calmar ratioReturn relative to maximum drawdown | 0.16 | 1.66 | -1.50 |
| Martin ratioReturn relative to average drawdown | 0.43 | 6.19 | -5.76 |
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Drawdowns
VNQI vs. ESGD - Drawdown Comparison
The maximum VNQI drawdown since its inception was -38.35%, which is greater than ESGD's maximum drawdown of -33.70%. Use the drawdown chart below to compare losses from any high point for VNQI and ESGD.
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Drawdown Indicators
| VNQI | ESGD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.35% | -33.70% | -4.65% |
Max Drawdown (1Y)Largest decline over 1 year | -14.78% | -11.68% | -3.10% |
Max Drawdown (3Y)Largest decline over 3 years | -16.35% | -13.86% | -2.49% |
Max Drawdown (5Y)Largest decline over 5 years | -34.92% | -30.03% | -4.89% |
Max Drawdown (10Y)Largest decline over 10 years | -38.35% | — | — |
Current DrawdownCurrent decline from peak | -12.08% | -2.26% | -9.82% |
Average DrawdownAverage peak-to-trough decline | -10.89% | -6.16% | -4.73% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.53% | 3.13% | +2.40% |
Volatility
VNQI vs. ESGD - Volatility Comparison
The current volatility for Vanguard Global ex-U.S. Real Estate ETF (VNQI) is 4.50%, while iShares ESG Aware MSCI EAFE ETF (ESGD) has a volatility of 5.48%. This indicates that VNQI experiences smaller price fluctuations and is considered to be less risky than ESGD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VNQI | ESGD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.50% | 5.48% | -0.98% |
Volatility (6M)Calculated over the trailing 6-month period | 11.94% | 13.44% | -1.50% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.78% | 15.85% | -2.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.55% | 16.71% | -1.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 15.95% | 17.00% | -1.05% |
VNQI vs. ESGD - Expense Ratio Comparison
VNQI has a 0.12% expense ratio, which is lower than ESGD's 0.20% 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%.
Dividends
VNQI vs. ESGD - Dividend Comparison
VNQI's dividend yield for the trailing twelve months is around 4.83%, more than ESGD's 3.38% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ESGD iShares ESG Aware MSCI EAFE ETF | 3.38% | 3.60% | 3.23% | 3.02% | 2.59% | 2.75% | 1.63% | 2.57% | 2.69% | 2.65% | 0.09% | 0.00% |
VNQI Vanguard Global ex-U.S. Real Estate ETF | 4.83% | 4.70% | 5.16% | 3.74% | 0.57% | 6.48% | 0.93% | 7.58% | 4.62% | 3.86% | 5.18% | 2.86% |
Frequently Asked Questions
VNQI and ESGD have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ESGD has higher volatility (5.48%) compared to VNQI (4.50%). In terms of maximum drawdown, VNQI dropped -38.35% vs ESGD's -33.70%.
On 5-year performance, ESGD leads with 8.05% vs -1.53% for VNQI. On fees, VNQI is cheaper at 0.12% per year. On volatility, VNQI has been the lower-risk option at 4.50%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, ESGD has performed better with a 8.05% return vs -1.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQI is cheaper with a 0.12% expense ratio, compared with 0.20% for ESGD.
VNQI has the higher dividend yield at 4.83%, compared with 3.38% for ESGD.
VNQI is categorized as REIT, while ESGD is Foreign Large Cap Equities. VNQI tracks S&P Global ex-U.S. Property Index, while ESGD tracks MSCI EAFE Extended ESG Focus Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.12% for VNQI and 0.20% for ESGD.
ESGD currently has the higher Sharpe Ratio (1.23 vs 0.17), 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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