VT vs. VNQ

Last updated Jun 13, 2026

VT (Vanguard Total World Stock ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - VT is a Global Equities fund tracking the FTSE Global All Cap Index, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 10 years, VT returned 12.93%/yr vs 5.65%/yr for VNQ. A 0.64 correlation means they provide meaningful diversification when combined. VT charges 0.06%/yr vs 0.13%/yr for VNQ.

Performance

VT vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total World Stock ETF (VT) 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, VT achieves a 11.06% return, which is significantly lower than VNQ's 12.51% return. Over the past 10 years, VT has outperformed VNQ with an annualized return of 12.93%, while VNQ has yielded a comparatively lower 5.65% annualized return.

VT

• 1D: 0.44%
• 1M: 0.57%
• YTD: 11.06%
• 6M: 11.82%
• 1Y: 25.83%
• 3Y*: 19.71%
• 5Y*: 10.65%
• 10Y*: 12.93%

VNQ

• 1D: 0.92%
• 1M: 2.73%
• YTD: 12.51%
• 6M: 12.32%
• 1Y: 12.92%
• 3Y*: 10.14%
• 5Y*: 2.55%
• 10Y*: 5.65%

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

VT vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VT Vanguard Total World Stock ETF	11.06%	22.43%	16.49%	22.02%	-18.00%	18.27%	16.59%	26.81%	-9.76%	24.50%
VNQ Vanguard Real Estate ETF	12.51%	3.24%	4.81%	11.85%	-26.25%	40.54%	-4.61%	28.91%	-6.03%	4.90%

Correlation

The correlation between VT and VNQ is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.63
Correlation (10Y) Calculated over the trailing 10-year period	0.58
Correlation (All Time) Calculated using the full available price history since Jun 26, 2008	0.64

Over the past year, the correlation between VT and VNQ has dropped to 0.40 - well below their long-term average of 0.64, suggesting their price drivers have been diverging.

VT vs. VNQ - Sectors Allocation Comparison

Sectors	VT	VNQ
Technology	27.8%	0.3%
Financial Services	15.9%	0.1%
Industrials	12.0%	0.0%
Consumer Cyclical	9.5%	-
Communication Services	8.3%	0.6%
Healthcare	8.1%	-
Consumer Defensive	4.8%	-
Energy	4.3%	0.1%
Basic Materials	4.2%	1.1%
Utilities	2.7%	-
Real Estate	2.4%	97.3%

Return for Risk

VT vs. VNQ — Risk / Return Rank

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

VT

VT Risk / Return Rank: 68
VT Sharpe Ratio Rank: 69
VT Sortino Ratio Rank: 68
VT Omega Ratio Rank: 69
VT Calmar Ratio Rank: 62
VT Martin Ratio Rank: 72

VNQ

VNQ Risk / Return Rank: 32
VNQ Sharpe Ratio Rank: 30
VNQ Sortino Ratio Rank: 28
VNQ Omega Ratio Rank: 28
VNQ Calmar Ratio Rank: 35
VNQ Martin Ratio Rank: 36

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.

VT vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Total World Stock ETF (VT) 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.

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.

	VT	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	1.94	0.96	+0.98
Sortino ratio: Return per unit of downside risk	2.67	1.39	+1.28
Omega ratio: Gain probability vs. loss probability	1.35	1.17	+0.18
Calmar ratio: Return relative to maximum drawdown	2.68	1.56	+1.13
Martin ratio: Return relative to average drawdown	11.67	4.90	+6.77

VT vs. VNQ - Sharpe Ratio Comparison

The current VT Sharpe Ratio is 1.94, which is higher than the VNQ Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of VT 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.

Drawdowns

VT vs. VNQ - Drawdown Comparison

The maximum VT drawdown since its inception was -50.27%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for VT and VNQ.

Drawdown Indicators

	VT	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-50.27%	-73.07%	+22.80%
Max Drawdown (1Y) Largest decline over 1 year	-9.67%	-8.34%	-1.33%
Max Drawdown (3Y) Largest decline over 3 years	-16.51%	-17.46%	+0.95%
Max Drawdown (5Y) Largest decline over 5 years	-26.38%	-34.48%	+8.10%
Max Drawdown (10Y) Largest decline over 10 years	-34.24%	-42.40%	+8.16%
Current Drawdown Current decline from peak	-1.92%	0.00%	-1.92%
Average Drawdown Average peak-to-trough decline	-7.01%	-13.61%	+6.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.22%	2.65%	-0.43%

Volatility

VT vs. VNQ - Volatility Comparison

Vanguard Total World Stock ETF (VT) has a higher volatility of 5.26% compared to Vanguard Real Estate ETF (VNQ) at 4.72%. This indicates that VT'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

	VT	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.26%	4.72%	+0.54%
Volatility (6M) Calculated over the trailing 6-month period	11.01%	9.77%	+1.24%
Volatility (1Y) Calculated over the trailing 1-year period	13.38%	13.54%	-0.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.15%	18.84%	-2.69%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.27%	20.72%	-3.45%

VT vs. VNQ - Expense Ratio Comparison

VT has a 0.06% 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

VT vs. VNQ - Dividend Comparison

VT's dividend yield for the trailing twelve months is around 1.61%, less than VNQ's 3.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VNQ Vanguard Real Estate ETF	3.54%	3.92%	3.85%	3.95%	3.91%	2.56%	3.93%	3.39%	4.74%	4.23%	4.82%	3.92%
VT Vanguard Total World Stock ETF	1.61%	1.82%	1.95%	2.08%	2.20%	1.82%	1.66%	2.32%	2.53%	2.11%	2.39%	2.45%

Frequently Asked Questions

Can I hold both VT and VNQ in my portfolio?

VT and VNQ have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VT or VNQ?

VT has higher volatility (5.26%) compared to VNQ (4.72%). In terms of maximum drawdown, VT dropped -50.27% vs VNQ's -73.07%.

Which ETF is better, VT or VNQ?

On 10-year performance, VT leads with 12.93% vs 5.65% for VNQ. On fees, VT is cheaper at 0.06% per year. On volatility, VNQ has been the lower-risk option at 4.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VT or VNQ?

Over the 10-year period, VT has performed better with a 12.93% return vs 5.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VT or VNQ?

VT is cheaper with a 0.06% expense ratio, compared with 0.13% for VNQ.

Which ETF pays a higher dividend yield, VT or VNQ?

VNQ has the higher dividend yield at 3.54%, compared with 1.61% for VT.

What is the main difference between VT and VNQ?

VT is categorized as Global Equities, while VNQ is REIT. VT tracks FTSE Global All Cap Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. Their fees differ too: 0.06% for VT and 0.13% for VNQ.

Which has better risk-adjusted returns?

VT currently has the higher Sharpe Ratio (1.94 vs 0.96), 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.