VNQI vs. VSS

Last updated Jun 13, 2026

VNQI (Vanguard Global ex-U.S. Real Estate ETF) and VSS (Vanguard FTSE All-World ex-US Small-Cap ETF) are both exchange-traded funds - VNQI is a REIT fund tracking the S&P Global ex-U.S. Property Index, while VSS is a Foreign Small & Mid Cap Equities fund tracking the FTSE Global Small Cap ex US Index. Both are passively managed. Over the past 10 years, VNQI returned 2.74%/yr vs 8.49%/yr for VSS. Their correlation of 0.84 suggests significant overlap in exposure. VNQI charges 0.12%/yr vs 0.07%/yr for VSS.

Performance

VNQI vs. VSS - 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 Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VNQI achieves a -0.33% return, which is significantly lower than VSS's 10.04% return. Over the past 10 years, VNQI has underperformed VSS with an annualized return of 2.74%, while VSS has yielded a comparatively higher 8.49% annualized return.

VNQI

• 1D: 0.68%
• 1M: -3.12%
• YTD: -0.33%
• 6M: 0.85%
• 1Y: 5.87%
• 3Y*: 8.59%
• 5Y*: -1.50%
• 10Y*: 2.74%

VSS

• 1D: 0.50%
• 1M: -2.09%
• YTD: 10.04%
• 6M: 12.05%
• 1Y: 23.45%
• 3Y*: 15.73%
• 5Y*: 5.58%
• 10Y*: 8.49%

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

VNQI vs. VSS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VNQI Vanguard Global ex-U.S. Real Estate ETF	-0.33%	21.38%	-2.22%	6.99%	-22.94%	5.93%	-7.22%	21.59%	-9.44%	26.91%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	10.04%	29.61%	2.94%	15.52%	-21.48%	13.05%	11.81%	21.36%	-18.48%	30.61%

Correlation

The correlation between VNQI and VSS 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	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Nov 1, 2010	0.84

The correlation between VNQI and VSS has been stable across timeframes, ranging from 0.78 to 0.84 - a consistent structural relationship.

VNQI vs. VSS - Sectors Allocation Comparison

Sectors	VNQI	VSS
Real Estate	91.2%	7.3%
Financial Services	1.9%	10.8%
Consumer Cyclical	1.1%	9.3%
Industrials	0.7%	18.7%
Energy	0.3%	4.9%
Basic Materials	0.3%	12.1%
Technology	0.2%	13.3%
Utilities	0.1%	2.5%
Consumer Defensive	0.1%	3.4%
Healthcare	0.0%	6.2%
Communication Services	-	2.3%

Return for Risk

VNQI vs. VSS — Risk / Return Rank

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

VNQI

VNQI Risk / Return Rank: 16
VNQI Sharpe Ratio Rank: 17
VNQI Sortino Ratio Rank: 16
VNQI Omega Ratio Rank: 16
VNQI Calmar Ratio Rank: 15
VNQI Martin Ratio Rank: 15

VSS

VSS Risk / Return Rank: 49
VSS Sharpe Ratio Rank: 49
VSS Sortino Ratio Rank: 48
VSS Omega Ratio Rank: 51
VSS Calmar Ratio Rank: 46
VSS Martin Ratio Rank: 51

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. VSS - 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 Vanguard FTSE All-World ex-US Small-Cap ETF (VSS). 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	VSS	Difference
Sharpe ratio: Return per unit of total volatility	0.43	1.51	-1.08
Sortino ratio: Return per unit of downside risk	0.70	2.10	-1.40
Omega ratio: Gain probability vs. loss probability	1.09	1.28	-0.19
Calmar ratio: Return relative to maximum drawdown	0.40	2.03	-1.63
Martin ratio: Return relative to average drawdown	1.13	7.61	-6.48

VNQI vs. VSS - Sharpe Ratio Comparison

The current VNQI Sharpe Ratio is 0.43, which is lower than the VSS Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of VNQI and VSS, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

VNQI vs. VSS - Drawdown Comparison

The maximum VNQI drawdown since its inception was -38.35%, smaller than the maximum VSS drawdown of -43.51%. Use the drawdown chart below to compare losses from any high point for VNQI and VSS.

Drawdown Indicators

	VNQI	VSS	Difference
Max Drawdown Largest peak-to-trough decline	-38.35%	-43.51%	+5.16%
Max Drawdown (1Y) Largest decline over 1 year	-14.78%	-11.62%	-3.16%
Max Drawdown (3Y) Largest decline over 3 years	-16.35%	-15.73%	-0.62%
Max Drawdown (5Y) Largest decline over 5 years	-35.55%	-33.93%	-1.62%
Max Drawdown (10Y) Largest decline over 10 years	-38.35%	-43.51%	+5.16%
Current Drawdown Current decline from peak	-9.99%	-3.05%	-6.94%
Average Drawdown Average peak-to-trough decline	-10.89%	-9.63%	-1.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.19%	3.09%	+2.10%

Volatility

VNQI vs. VSS - Volatility Comparison

The current volatility for Vanguard Global ex-U.S. Real Estate ETF (VNQI) is 4.62%, while Vanguard FTSE All-World ex-US Small-Cap ETF (VSS) has a volatility of 6.52%. This indicates that VNQI experiences smaller price fluctuations and is considered to be less risky than VSS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VNQI	VSS	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.62%	6.52%	-1.90%
Volatility (6M) Calculated over the trailing 6-month period	11.75%	13.55%	-1.80%
Volatility (1Y) Calculated over the trailing 1-year period	13.73%	15.60%	-1.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.54%	16.59%	-1.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.07%	17.30%	-1.23%

VNQI vs. VSS - Expense Ratio Comparison

VNQI has a 0.12% expense ratio, which is higher than VSS's 0.07% 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

VNQI vs. VSS - Dividend Comparison

VNQI's dividend yield for the trailing twelve months is around 4.72%, more than VSS's 3.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VNQI Vanguard Global ex-U.S. Real Estate ETF	4.72%	4.70%	5.16%	3.74%	0.57%	6.48%	0.93%	7.58%	4.62%	3.86%	5.18%	2.86%
VSS Vanguard FTSE All-World ex-US Small-Cap ETF	3.08%	3.39%	3.44%	3.14%	2.30%	2.74%	1.90%	3.25%	2.80%	2.83%	2.93%	2.66%

Frequently Asked Questions

Can I hold both VNQI and VSS in my portfolio?

VNQI and VSS 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.

Which is riskier, VNQI or VSS?

VSS has higher volatility (6.52%) compared to VNQI (4.62%). In terms of maximum drawdown, VNQI dropped -38.35% vs VSS's -43.51%.

Which ETF is better, VNQI or VSS?

On 10-year performance, VSS leads with 8.49% vs 2.74% for VNQI. On fees, VSS is cheaper at 0.07% per year. On volatility, VNQI has been the lower-risk option at 4.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VNQI or VSS?

Over the 10-year period, VSS has performed better with a 8.49% return vs 2.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VNQI or VSS?

VSS is cheaper with a 0.07% expense ratio, compared with 0.12% for VNQI.

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

VNQI has the higher dividend yield at 4.72%, compared with 3.08% for VSS.

What is the main difference between VNQI and VSS?

VNQI is categorized as REIT, while VSS is Foreign Small & Mid Cap Equities. VNQI tracks S&P Global ex-U.S. Property Index, while VSS tracks FTSE Global Small Cap ex US Index. Their fees differ too: 0.12% for VNQI and 0.07% for VSS.

Which has better risk-adjusted returns?

VSS currently has the higher Sharpe Ratio (1.51 vs 0.43), 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.