VPU vs. VNQ
Compare and contrast key facts about Vanguard Utilities ETF (VPU) and Vanguard Real Estate ETF (VNQ).
VPU and VNQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VPU is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Utilities 25/50 Index. It was launched on Jan 26, 2004. 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. Both VPU and VNQ 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: VPU or VNQ.
Key characteristics
| VPU | VNQ | |
|---|---|---|
| YTD Return | 5.54% | -8.50% |
| 1Y Return | -0.91% | 1.56% |
| 3Y Return (Ann) | 3.21% | -2.98% |
| 5Y Return (Ann) | 5.37% | 2.16% |
| 10Y Return (Ann) | 7.78% | 5.11% |
| Sharpe Ratio | 0.01 | 0.20 |
| Daily Std Dev | 16.96% | 18.93% |
| Max Drawdown | -46.31% | -73.07% |
| Current Drawdown | -10.13% | -24.53% |
Correlation
The correlation between VPU and VNQ is 0.60, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
VPU vs. VNQ - Performance Comparison
In the year-to-date period, VPU achieves a 5.54% return, which is significantly higher than VNQ's -8.50% return. Over the past 10 years, VPU has outperformed VNQ with an annualized return of 7.78%, while VNQ has yielded a comparatively lower 5.11% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
VPU vs. VNQ - Expense Ratio Comparison
VPU has a 0.10% expense ratio, which is lower than VNQ's 0.12% 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
VPU vs. VNQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Utilities ETF (VPU) and Vanguard Real Estate ETF (VNQ). 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
VPU vs. VNQ - Dividend Comparison
VPU's dividend yield for the trailing twelve months is around 3.30%, less than VNQ's 4.31% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VPU Vanguard Utilities ETF | 3.30% | 3.49% | 2.98% | 2.70% | 3.17% | 2.83% | 3.23% | 3.18% | 3.19% | 3.63% | 3.02% | 3.76% |
VNQ Vanguard Real Estate ETF | 4.31% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% | 4.32% |
Drawdowns
VPU vs. VNQ - Drawdown Comparison
The maximum VPU drawdown since its inception was -46.31%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for VPU and VNQ. For additional features, visit the drawdowns tool.
Volatility
VPU vs. VNQ - Volatility Comparison
The current volatility for Vanguard Utilities ETF (VPU) is 4.39%, while Vanguard Real Estate ETF (VNQ) has a volatility of 5.92%. This indicates that VPU experiences smaller price fluctuations and is considered to be less risky than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.