VV vs. VNQ
VV (Vanguard Large-Cap ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - VV is a Large Cap Blend Equities fund tracking the CRSP US Large 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, VV returned 15.78%/yr vs 5.31%/yr for VNQ. A 0.65 correlation means they provide meaningful diversification when combined. VV charges 0.04%/yr vs 0.13%/yr for VNQ.
Performance
VV vs. VNQ - Performance Comparison
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Returns By Period
In the year-to-date period, VV achieves a 9.48% return, which is significantly lower than VNQ's 10.32% return. Over the past 10 years, VV has outperformed VNQ with an annualized return of 15.78%, while VNQ has yielded a comparatively lower 5.31% annualized return.
VV
- 1D
- -0.40%
- 1M
- 0.17%
- YTD
- 9.48%
- 6M
- 9.02%
- 1Y
- 26.45%
- 3Y*
- 21.58%
- 5Y*
- 13.13%
- 10Y*
- 15.78%
VNQ
- 1D
- 1.08%
- 1M
- -0.19%
- YTD
- 10.32%
- 6M
- 10.63%
- 1Y
- 11.80%
- 3Y*
- 10.81%
- 5Y*
- 2.52%
- 10Y*
- 5.31%
VV vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VV Vanguard Large-Cap ETF | 9.48% | 18.11% | 25.25% | 27.18% | -19.91% | 27.41% | 21.04% | 31.25% | -4.46% | 22.00% |
VNQ Vanguard Real Estate ETF | 10.32% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
Correlation
The correlation between VV and VNQ is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.30 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.46 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.57 |
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004 | 0.65 |
Over the past year, the correlation between VV and VNQ has dropped to 0.30 - well below their long-term average of 0.65, suggesting their price drivers have been diverging.
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Return for Risk
VV vs. VNQ — Risk / Return Rank
VV
VNQ
VV vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Large-Cap ETF (VV) 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.
| VV | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.25 | ||
| Sortino ratioReturn per unit of downside risk | +1.61 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.16 | +0.22 |
| Calmar ratioReturn relative to maximum drawdown | 2.89 | 1.42 | +1.47 |
| Martin ratioReturn relative to average drawdown | 12.78 | 4.45 | +8.33 |
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Drawdowns
VV vs. VNQ - Drawdown Comparison
The maximum VV drawdown since its inception was -54.81%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for VV and VNQ.
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Drawdown Indicators
| VV | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -54.81% | -73.07% | +18.26% |
Max Drawdown (1Y)Largest decline over 1 year | -9.21% | -8.34% | -0.87% |
Max Drawdown (3Y)Largest decline over 3 years | -18.97% | -17.46% | -1.51% |
Max Drawdown (5Y)Largest decline over 5 years | -25.66% | -34.48% | +8.82% |
Max Drawdown (10Y)Largest decline over 10 years | -34.28% | -42.40% | +8.12% |
Current DrawdownCurrent decline from peak | -1.80% | -1.95% | +0.15% |
Average DrawdownAverage peak-to-trough decline | -6.83% | -13.60% | +6.77% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.08% | 2.66% | -0.58% |
Volatility
VV vs. VNQ - Volatility Comparison
The current volatility for Vanguard Large-Cap ETF (VV) is 4.72%, while Vanguard Real Estate ETF (VNQ) has a volatility of 5.03%. This indicates that VV 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.
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Volatility by Period
| VV | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.72% | 5.03% | -0.31% |
Volatility (6M)Calculated over the trailing 6-month period | 9.84% | 10.15% | -0.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.59% | 13.81% | -1.22% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.32% | 18.85% | -1.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.24% | 20.75% | -2.51% |
VV vs. VNQ - Expense Ratio Comparison
VV has a 0.04% 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
VV vs. VNQ - Dividend Comparison
VV's dividend yield for the trailing twelve months is around 0.99%, less than VNQ's 3.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 3.61% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
VV Vanguard Large-Cap ETF | 0.99% | 1.08% | 1.24% | 1.41% | 1.66% | 1.19% | 1.46% | 1.81% | 2.09% | 1.75% | 1.98% | 1.96% |
Frequently Asked Questions
VV and VNQ have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VNQ has higher volatility (5.03%) compared to VV (4.72%). In terms of maximum drawdown, VV dropped -54.81% vs VNQ's -73.07%.
On 10-year performance, VV leads with 15.78% vs 5.31% for VNQ. On fees, VV is cheaper at 0.04% per year. On volatility, VV has been the lower-risk option at 4.72%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VV has performed better with a 15.78% return vs 5.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VV is cheaper with a 0.04% expense ratio, compared with 0.13% for VNQ.
VNQ has the higher dividend yield at 3.61%, compared with 0.99% for VV.
VV is categorized as Large Cap Blend Equities, while VNQ is REIT. VV tracks CRSP US Large Cap Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. Their fees differ too: 0.04% for VV and 0.13% for VNQ.
VV currently has the higher Sharpe Ratio (2.11 vs 0.86), 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.
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