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.
Performance
VPU vs. VNQ - Performance Comparison
Returns By Period
In the year-to-date period, VPU achieves a 27.84% return, which is significantly higher than VNQ's 9.31% return. Over the past 10 years, VPU has outperformed VNQ with an annualized return of 9.08%, while VNQ has yielded a comparatively lower 5.90% annualized return.
VPU
27.84%
-3.37%
10.81%
32.13%
7.61%
9.08%
VNQ
9.31%
-3.85%
12.81%
23.49%
4.13%
5.90%
Key characteristics
| VPU | VNQ | |
|---|---|---|
| Sharpe Ratio | 2.14 | 1.43 |
| Sortino Ratio | 2.92 | 2.03 |
| Omega Ratio | 1.37 | 1.25 |
| Calmar Ratio | 1.68 | 0.86 |
| Martin Ratio | 10.40 | 5.17 |
| Ulcer Index | 3.15% | 4.49% |
| Daily Std Dev | 15.33% | 16.22% |
| Max Drawdown | -46.31% | -73.07% |
| Current Drawdown | -3.37% | -9.83% |
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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%.
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.
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 2.90%, less than VNQ's 3.89% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VPU Vanguard Utilities ETF | 2.90% | 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 | 3.89% | 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
Vanguard Utilities ETF (VPU) and Vanguard Real Estate ETF (VNQ) have volatilities of 5.10% and 5.12%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.