VSGDX vs. VNQ

Last updated Jun 4, 2026

VSGDX (Vanguard Short-Term Federal Fund Admiral Shares) and VNQ (Vanguard Real Estate ETF) are both funds - VSGDX is a Total Bond Market fund managed by Vanguard, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Over the past 10 years, VSGDX returned 1.91%/yr vs 5.21%/yr for VNQ. At a 0.01 correlation, their price movements are largely independent. VSGDX charges 0.10%/yr vs 0.13%/yr for VNQ.

Performance

VSGDX vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Short-Term Federal Fund Admiral Shares (VSGDX) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VSGDX achieves a 0.64% return, which is significantly lower than VNQ's 7.83% return. Over the past 10 years, VSGDX has underperformed VNQ with an annualized return of 1.91%, while VNQ has yielded a comparatively higher 5.21% annualized return.

VSGDX

• 1D: 0.00%
• 1M: 0.13%
• YTD: 0.64%
• 6M: 0.87%
• 1Y: 4.11%
• 3Y*: 4.53%
• 5Y*: 1.71%
• 10Y*: 1.91%

VNQ

• 1D: -0.12%
• 1M: -1.10%
• YTD: 7.83%
• 6M: 6.75%
• 1Y: 9.97%
• 3Y*: 9.15%
• 5Y*: 2.18%
• 10Y*: 5.21%

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

VSGDX vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSGDX Vanguard Short-Term Federal Fund Admiral Shares	0.64%	5.94%	4.26%	3.92%	-5.22%	-0.58%	4.46%	4.21%	1.37%	0.80%
VNQ Vanguard Real Estate ETF	7.83%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between VSGDX and VNQ is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.32
Correlation (5Y) Calculated over the trailing 5-year period	0.26
Correlation (10Y) Calculated over the trailing 10-year period	0.17
Correlation (All Time) Calculated using the full available price history since Sep 30, 2004	0.01

Over the past year, VSGDX and VNQ have become more correlated (0.34) than their long-term average of 0.01, meaning their price movements have been converging.

Return for Risk

VSGDX vs. VNQ — Risk / Return Rank

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

VSGDX

VSGDX Risk / Return Rank: 53
VSGDX Sharpe Ratio Rank: 41
VSGDX Sortino Ratio Rank: 60
VSGDX Omega Ratio Rank: 52
VSGDX Calmar Ratio Rank: 61
VSGDX Martin Ratio Rank: 53

VNQ

VNQ Risk / Return Rank: 23
VNQ Sharpe Ratio Rank: 22
VNQ Sortino Ratio Rank: 21
VNQ Omega Ratio Rank: 20
VNQ Calmar Ratio Rank: 25
VNQ Martin Ratio Rank: 27

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.

VSGDX vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Short-Term Federal Fund Admiral Shares (VSGDX) 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.

	VSGDX	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	1.87	0.76	+1.11
Sortino ratio: Return per unit of downside risk	3.26	1.12	+2.15
Omega ratio: Gain probability vs. loss probability	1.40	1.14	+0.26
Calmar ratio: Return relative to maximum drawdown	2.99	1.20	+1.79
Martin ratio: Return relative to average drawdown	10.72	3.78	+6.94
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSGDX vs. VNQ - Sharpe Ratio Comparison

The current VSGDX Sharpe Ratio is 1.87, which is higher than the VNQ Sharpe Ratio of 0.76. The chart below compares the historical Sharpe Ratios of VSGDX and VNQ, 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

	VSGDX	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.87	0.76	+1.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.64	0.12	+0.52
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.88	0.25	+0.63
Sharpe Ratio (All Time) Calculated using the full available price history	1.24	0.26	+0.98

Drawdowns

VSGDX vs. VNQ - Drawdown Comparison

The maximum VSGDX drawdown since its inception was -7.29%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for VSGDX and VNQ.

Drawdown Indicators

	VSGDX	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-7.29%	-73.07%	+65.78%
Max Drawdown (1Y) Largest decline over 1 year	-1.35%	-8.34%	+6.99%
Max Drawdown (3Y) Largest decline over 3 years	-1.35%	-17.46%	+16.11%
Max Drawdown (5Y) Largest decline over 5 years	-7.29%	-34.48%	+27.19%
Max Drawdown (10Y) Largest decline over 10 years	-7.29%	-42.40%	+35.11%
Current Drawdown Current decline from peak	-0.38%	-3.75%	+3.37%
Average Drawdown Average peak-to-trough decline	-0.73%	-13.63%	+12.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.37%	2.64%	-2.27%

Volatility

VSGDX vs. VNQ - Volatility Comparison

The current volatility for Vanguard Short-Term Federal Fund Admiral Shares (VSGDX) is 0.71%, while Vanguard Real Estate ETF (VNQ) has a volatility of 3.72%. This indicates that VSGDX 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.

Volatility by Period

	VSGDX	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.71%	3.72%	-3.01%
Volatility (6M) Calculated over the trailing 6-month period	1.56%	9.26%	-7.70%
Volatility (1Y) Calculated over the trailing 1-year period	2.15%	13.16%	-11.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.68%	18.80%	-16.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.17%	20.70%	-18.53%

VSGDX vs. VNQ - Expense Ratio Comparison

VSGDX has a 0.10% expense ratio, which is lower than VNQ's 0.13% 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%.

Dividends

VSGDX vs. VNQ - Dividend Comparison

VSGDX's dividend yield for the trailing twelve months is around 3.95%, more than VNQ's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VNQ Vanguard Real Estate ETF	3.69%	3.92%	3.85%	3.95%	3.91%	2.56%	3.93%	3.39%	4.74%	4.23%	4.82%	3.92%
VSGDX Vanguard Short-Term Federal Fund Admiral Shares	3.95%	3.79%	3.56%	3.42%	1.78%	1.45%	1.78%	2.42%	2.02%	1.46%	1.43%	1.30%

Frequently Asked Questions

Can I hold both VSGDX and VNQ in my portfolio?

VSGDX and VNQ have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSGDX or VNQ?

VNQ has higher volatility (3.72%) compared to VSGDX (0.71%). In terms of maximum drawdown, VSGDX dropped -7.29% vs VNQ's -73.07%.

Which has better risk-adjusted returns?

VSGDX currently has the higher Sharpe Ratio (1.87 vs 0.76), 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.