VNQI vs. REIT

Last updated Jun 5, 2026

VNQI (Vanguard Global ex-U.S. Real Estate ETF) and REIT (ALPS Active REIT ETF) are both REIT funds. VNQI is passively managed, while REIT is actively managed. Over the past 5 years, VNQI returned -1.57%/yr vs 4.62%/yr for REIT. A 0.61 correlation means they provide meaningful diversification when combined. VNQI charges 0.12%/yr vs 0.68%/yr for REIT.

Performance

VNQI vs. REIT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Global ex-U.S. Real Estate ETF (VNQI) and ALPS Active REIT ETF (REIT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VNQI achieves a -2.14% return, which is significantly lower than REIT's 14.13% return.

VNQI

• 1D: 0.45%
• 1M: -4.57%
• YTD: -2.14%
• 6M: -0.84%
• 1Y: 5.67%
• 3Y*: 8.33%
• 5Y*: -1.57%
• 10Y*: 2.21%

REIT

• 1D: 1.18%
• 1M: 1.06%
• YTD: 14.13%
• 6M: 14.05%
• 1Y: 14.82%
• 3Y*: 11.03%
• 5Y*: 4.62%
• 10Y*: —

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

VNQI vs. REIT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
VNQI Vanguard Global ex-U.S. Real Estate ETF	-2.14%	21.38%	-2.22%	6.99%	-22.94%	5.27%
REIT ALPS Active REIT ETF	14.13%	-0.55%	7.11%	13.74%	-21.23%	33.56%

Correlation

The correlation between VNQI and REIT 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	0.62
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (All Time) Calculated using the full available price history since Mar 1, 2021	0.61

The correlation between VNQI and REIT has been stable across timeframes, ranging from 0.56 to 0.63 - a consistent structural relationship.

VNQI vs. REIT - Sectors Allocation Comparison

Sectors	VNQI	REIT
Real Estate	91.2%	100.0%
Financial Services	1.9%	-
Consumer Cyclical	1.1%	-
Industrials	0.7%	-
Energy	0.3%	-
Basic Materials	0.3%	-
Technology	0.2%	-
Utilities	0.1%	-
Consumer Defensive	0.1%	-
Healthcare	0.0%	-
Communication Services	-	-

Return for Risk

VNQI vs. REIT — Risk / Return Rank

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

VNQI

VNQI Risk / Return Rank: 15
VNQI Sharpe Ratio Rank: 16
VNQI Sortino Ratio Rank: 15
VNQI Omega Ratio Rank: 16
VNQI Calmar Ratio Rank: 14
VNQI Martin Ratio Rank: 15

REIT

REIT Risk / Return Rank: 35
REIT Sharpe Ratio Rank: 33
REIT Sortino Ratio Rank: 30
REIT Omega Ratio Rank: 31
REIT Calmar Ratio Rank: 42
REIT Martin Ratio Rank: 38

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.

VNQI vs. REIT - 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 ALPS Active REIT ETF (REIT). 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.

	VNQI	REIT	Difference
Sharpe ratio: Return per unit of total volatility	0.42	1.16	-0.74
Sortino ratio: Return per unit of downside risk	0.69	1.59	-0.89
Omega ratio: Gain probability vs. loss probability	1.09	1.21	-0.12
Calmar ratio: Return relative to maximum drawdown	0.39	2.02	-1.64
Martin ratio: Return relative to average drawdown	1.17	5.86	-4.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VNQI vs. REIT - Sharpe Ratio Comparison

The current VNQI Sharpe Ratio is 0.42, which is lower than the REIT Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of VNQI and REIT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VNQI	REIT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.42	1.16	-0.74
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.10	0.25	-0.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.14	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.20	0.40	-0.20

Drawdowns

VNQI vs. REIT - Drawdown Comparison

The maximum VNQI drawdown since its inception was -38.35%, which is greater than REIT's maximum drawdown of -29.30%. Use the drawdown chart below to compare losses from any high point for VNQI and REIT.

Drawdown Indicators

	VNQI	REIT	Difference
Max Drawdown Largest peak-to-trough decline	-38.35%	-29.30%	-9.05%
Max Drawdown (1Y) Largest decline over 1 year	-14.78%	-7.35%	-7.43%
Max Drawdown (3Y) Largest decline over 3 years	-16.35%	-18.19%	+1.84%
Max Drawdown (5Y) Largest decline over 5 years	-35.75%	-29.30%	-6.45%
Max Drawdown (10Y) Largest decline over 10 years	-38.35%	—	—
Current Drawdown Current decline from peak	-11.62%	-1.50%	-10.12%
Average Drawdown Average peak-to-trough decline	-10.89%	-10.37%	-0.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.84%	2.54%	+2.30%

Volatility

VNQI vs. REIT - Volatility Comparison

Vanguard Global ex-U.S. Real Estate ETF (VNQI) has a higher volatility of 4.58% compared to ALPS Active REIT ETF (REIT) at 3.96%. This indicates that VNQI's price experiences larger fluctuations and is considered to be riskier than REIT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VNQI	REIT	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.58%	3.96%	+0.62%
Volatility (6M) Calculated over the trailing 6-month period	11.44%	9.06%	+2.38%
Volatility (1Y) Calculated over the trailing 1-year period	13.43%	12.82%	+0.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.50%	18.46%	-2.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.06%	18.38%	-2.32%

VNQI vs. REIT - Expense Ratio Comparison

VNQI has a 0.12% expense ratio, which is lower than REIT's 0.68% expense ratio.

Dividends

VNQI vs. REIT - Dividend Comparison

VNQI's dividend yield for the trailing twelve months is around 4.81%, more than REIT's 2.76% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
REIT ALPS Active REIT ETF	2.76%	3.20%	3.06%	3.13%	2.81%	4.71%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VNQI Vanguard Global ex-U.S. Real Estate ETF	4.81%	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

Can I hold both VNQI and REIT in my portfolio?

VNQI and REIT 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.

Which is riskier, VNQI or REIT?

VNQI has higher volatility (4.58%) compared to REIT (3.96%). In terms of maximum drawdown, VNQI dropped -38.35% vs REIT's -29.30%.

Which ETF is better, VNQI or REIT?

On 5-year performance, REIT leads with 4.62% vs -1.57% for VNQI. On fees, VNQI is cheaper at 0.12% per year. On volatility, REIT has been the lower-risk option at 3.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VNQI or REIT?

Over the 5-year period, REIT has performed better with a 4.62% return vs -1.57%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VNQI or REIT?

VNQI is cheaper with a 0.12% expense ratio, compared with 0.68% for REIT.

Which ETF pays a higher dividend yield, VNQI or REIT?

VNQI has the higher dividend yield at 4.81%, compared with 2.76% for REIT.

What is the main difference between VNQI and REIT?

They also come from different issuers: Vanguard and ALPS. Their fees differ too: 0.12% for VNQI and 0.68% for REIT.

Which has better risk-adjusted returns?

REIT currently has the higher Sharpe Ratio (1.16 vs 0.42), 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.