VSIAX vs. VNQ

Last updated Jun 4, 2026

VSIAX (Vanguard Small-Cap Value Index Fund Admiral Shares) and VNQ (Vanguard Real Estate ETF) are both funds - VSIAX is a Small Cap Value Equities 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, VSIAX returned 10.56%/yr vs 5.21%/yr for VNQ. A 0.65 correlation means they provide meaningful diversification when combined. VSIAX charges 0.07%/yr vs 0.13%/yr for VNQ.

Performance

VSIAX vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Small-Cap Value Index Fund Admiral Shares (VSIAX) 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, VSIAX achieves a 12.06% return, which is significantly higher than VNQ's 7.83% return. Over the past 10 years, VSIAX has outperformed VNQ with an annualized return of 10.56%, while VNQ has yielded a comparatively lower 5.21% annualized return.

VSIAX

• 1D: 0.86%
• 1M: 2.83%
• YTD: 12.06%
• 6M: 12.39%
• 1Y: 26.25%
• 3Y*: 16.60%
• 5Y*: 8.06%
• 10Y*: 10.56%

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)

VSIAX vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VSIAX Vanguard Small-Cap Value Index Fund Admiral Shares	12.06%	9.09%	11.34%	17.06%	-9.31%	28.10%	5.80%	22.76%	-12.24%	11.80%
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 VSIAX and VNQ is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (10Y) Calculated over the trailing 10-year period	0.64
Correlation (All Time) Calculated using the full available price history since Sep 28, 2011	0.65

The correlation between VSIAX and VNQ has been stable across timeframes, ranging from 0.64 to 0.71 - a consistent structural relationship.

VSIAX vs. VNQ - Sectors Allocation Comparison

Sectors	VSIAX	VNQ
Industrials	18.1%	0.0%
Financial Services	17.6%	0.1%
Consumer Cyclical	12.4%	-
Technology	10.6%	0.3%
Real Estate	10.1%	97.3%
Healthcare	7.9%	-
Basic Materials	6.3%	1.1%
Energy	5.2%	0.1%
Utilities	4.8%	-
Consumer Defensive	4.0%	-
Communication Services	2.5%	0.6%

Return for Risk

VSIAX vs. VNQ — Risk / Return Rank

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

VSIAX

VSIAX Risk / Return Rank: 48
VSIAX Sharpe Ratio Rank: 40
VSIAX Sortino Ratio Rank: 41
VSIAX Omega Ratio Rank: 36
VSIAX Calmar Ratio Rank: 67
VSIAX Martin Ratio Rank: 56

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.

VSIAX vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Value Index Fund Admiral Shares (VSIAX) 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.

	VSIAX	VNQ	Difference
Sharpe ratio Return per unit of total volatility	1.84	0.76	+1.08
Sortino ratio Return per unit of downside risk	2.70	1.12	+1.59
Omega ratio Gain probability vs. loss probability	1.32	1.14	+0.18
Calmar ratio Return relative to maximum drawdown	3.16	1.20	+1.96
Martin ratio Return relative to average drawdown	11.18	3.78	+7.40
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VSIAX vs. VNQ - Sharpe Ratio Comparison

The current VSIAX Sharpe Ratio is 1.84, which is higher than the VNQ Sharpe Ratio of 0.76. The chart below compares the historical Sharpe Ratios of VSIAX 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

	VSIAX	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.84	0.76	+1.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.12	+0.29
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.25	+0.22
Sharpe Ratio (All Time) Calculated using the full available price history	0.59	0.26	+0.32

Drawdowns

VSIAX vs. VNQ - Drawdown Comparison

The maximum VSIAX drawdown since its inception was -45.39%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for VSIAX and VNQ.

Drawdown Indicators

	VSIAX	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-45.39%	-73.07%	+27.68%
Max Drawdown (1Y) Largest decline over 1 year	-8.87%	-8.34%	-0.53%
Max Drawdown (3Y) Largest decline over 3 years	-24.09%	-17.46%	-6.63%
Max Drawdown (5Y) Largest decline over 5 years	-24.09%	-34.48%	+10.39%
Max Drawdown (10Y) Largest decline over 10 years	-45.39%	-42.40%	-2.99%
Current Drawdown Current decline from peak	0.00%	-3.75%	+3.75%
Average Drawdown Average peak-to-trough decline	-5.50%	-13.63%	+8.13%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.50%	2.64%	-0.14%

Volatility

VSIAX vs. VNQ - Volatility Comparison

Vanguard Small-Cap Value Index Fund Admiral Shares (VSIAX) has a higher volatility of 4.09% compared to Vanguard Real Estate ETF (VNQ) at 3.72%. This indicates that VSIAX's price experiences larger fluctuations and is considered to be riskier than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VSIAX	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.09%	3.72%	+0.37%
Volatility (6M) Calculated over the trailing 6-month period	10.43%	9.26%	+1.17%
Volatility (1Y) Calculated over the trailing 1-year period	15.19%	13.16%	+2.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.77%	18.80%	+0.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.46%	20.70%	+1.76%

VSIAX vs. VNQ - Expense Ratio Comparison

VSIAX has a 0.07% 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

VSIAX vs. VNQ - Dividend Comparison

VSIAX's dividend yield for the trailing twelve months is around 1.75%, less 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%
VSIAX Vanguard Small-Cap Value Index Fund Admiral Shares	1.75%	1.95%	1.98%	2.10%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both VSIAX and VNQ in my portfolio?

VSIAX and VNQ have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VSIAX or VNQ?

VSIAX has higher volatility (4.09%) compared to VNQ (3.72%). In terms of maximum drawdown, VSIAX dropped -45.39% vs VNQ's -73.07%.

Which has better risk-adjusted returns?

VSIAX currently has the higher Sharpe Ratio (1.84 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.