VRTPX vs. TAREX

Last updated Jul 15, 2026

VRTPX (Vanguard Real Estate II Index Fund) and TAREX (Third Avenue Real Estate Value Fund) are both REIT funds. Over the past 5 years, VRTPX returned 2.27%/yr vs 3.54%/yr for TAREX. A 0.72 correlation means they provide meaningful diversification when combined. VRTPX charges 0.08%/yr vs 1.15%/yr for TAREX.

Performance

VRTPX vs. TAREX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Real Estate II Index Fund (VRTPX) and Third Avenue Real Estate Value Fund (TAREX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VRTPX achieves a 12.76% return, which is significantly higher than TAREX's -6.24% return.

VRTPX

• 1D: 0.51%
• 1M: 0.14%
• 6M: 10.73%
• YTD: 12.76%
• 1Y: 12.58%
• 3Y*: 8.23%
• 5Y*: 2.27%
• 10Y*: —

TAREX

• 1D: -0.52%
• 1M: -1.32%
• 6M: -8.54%
• YTD: -6.24%
• 1Y: -2.66%
• 3Y*: 9.52%
• 5Y*: 3.54%
• 10Y*: 4.04%

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

VRTPX vs. TAREX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VRTPX Vanguard Real Estate II Index Fund	12.76%	2.22%	3.72%	13.17%	-26.14%	40.37%	-4.65%	28.96%	-5.99%	1.37%
TAREX Third Avenue Real Estate Value Fund	-6.24%	12.52%	13.54%	23.48%	-26.53%	30.69%	-8.23%	21.09%	-19.98%	2.24%

Correlation

The correlation between VRTPX and TAREX is 0.68, 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	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (All Time) Calculated using the full available price history since Sep 26, 2017	0.72

The correlation between VRTPX and TAREX has been stable across timeframes, ranging from 0.66 to 0.74 - a consistent structural relationship.

Return for Risk

VRTPX vs. TAREX — Risk / Return Rank

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

VRTPX

VRTPX Risk / Return Rank: 24
VRTPX Sharpe Ratio Rank: 21
VRTPX Sortino Ratio Rank: 20
VRTPX Omega Ratio Rank: 20
VRTPX Calmar Ratio Rank: 30
VRTPX Martin Ratio Rank: 29

TAREX

TAREX Risk / Return Rank: 2
TAREX Sharpe Ratio Rank: 2
TAREX Sortino Ratio Rank: 2
TAREX Omega Ratio Rank: 2
TAREX Calmar Ratio Rank: 2
TAREX Martin Ratio Rank: 2

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.

VRTPX vs. TAREX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate II Index Fund (VRTPX) and Third Avenue Real Estate Value Fund (TAREX). 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.

	VRTPX	TAREX	Difference
Sharpe ratio: Return per unit of total volatility	0.96	-0.16	+1.12
Sortino ratio: Return per unit of downside risk	1.39	-0.13	+1.52
Omega ratio: Gain probability vs. loss probability	1.17	0.99	+0.19
Calmar ratio: Return relative to maximum drawdown	1.60	-0.16	+1.76
Martin ratio: Return relative to average drawdown	5.03	-0.39	+5.42

VRTPX vs. TAREX - Sharpe Ratio Comparison

The current VRTPX Sharpe Ratio is 0.96, which is higher than the TAREX Sharpe Ratio of -0.16. The chart below compares the historical Sharpe Ratios of VRTPX and TAREX, 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

VRTPX vs. TAREX - Drawdown Comparison

The maximum VRTPX drawdown since its inception was -42.33%, smaller than the maximum TAREX drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for VRTPX and TAREX.

Drawdown Indicators

	VRTPX	TAREX	Difference
Max Drawdown Largest peak-to-trough decline	-42.33%	-67.68%	+25.35%
Max Drawdown (1Y) Largest decline over 1 year	-8.34%	-15.81%	+7.47%
Max Drawdown (3Y) Largest decline over 3 years	-18.19%	-19.88%	+1.69%
Max Drawdown (5Y) Largest decline over 5 years	-34.35%	-31.89%	-2.46%
Max Drawdown (10Y) Largest decline over 10 years	—	-44.73%	—
Current Drawdown Current decline from peak	-0.88%	-10.18%	+9.30%
Average Drawdown Average peak-to-trough decline	-11.27%	-11.17%	-0.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.65%	6.49%	-3.84%

Volatility

VRTPX vs. TAREX - Volatility Comparison

Vanguard Real Estate II Index Fund (VRTPX) has a higher volatility of 4.96% compared to Third Avenue Real Estate Value Fund (TAREX) at 4.46%. This indicates that VRTPX's price experiences larger fluctuations and is considered to be riskier than TAREX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VRTPX	TAREX	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.96%	4.46%	+0.50%
Volatility (6M) Calculated over the trailing 6-month period	10.65%	12.21%	-1.56%
Volatility (1Y) Calculated over the trailing 1-year period	13.95%	15.57%	-1.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.97%	18.40%	+0.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.74%	18.66%	+3.08%

VRTPX vs. TAREX - Expense Ratio Comparison

VRTPX has a 0.08% expense ratio, which is lower than TAREX's 1.15% expense ratio.

Dividends

VRTPX vs. TAREX - Dividend Comparison

VRTPX's dividend yield for the trailing twelve months is around 3.56%, less than TAREX's 6.06% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
TAREX Third Avenue Real Estate Value Fund	6.06%	5.68%	6.59%	5.28%	8.76%	9.03%	0.99%	18.22%	11.07%	1.06%	1.80%	5.60%
VRTPX Vanguard Real Estate II Index Fund	3.56%	2.79%	3.80%	3.93%	4.52%	2.58%	3.92%	3.50%	4.77%	1.32%	0.00%	0.00%

Frequently Asked Questions

Can I hold both VRTPX and TAREX in my portfolio?

VRTPX and TAREX have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VRTPX or TAREX?

VRTPX has higher volatility (4.96%) compared to TAREX (4.46%). In terms of maximum drawdown, VRTPX dropped -42.33% vs TAREX's -67.68%.

Which has better risk-adjusted returns?

VRTPX currently has the higher Sharpe Ratio (0.96 vs -0.16), 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.