VXUS vs. VNQ

Last updated Jun 4, 2026

VXUS (Vanguard Total International Stock ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - VXUS is a Global Equities fund tracking the FTSE Global All Cap ex US 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, VXUS returned 9.76%/yr vs 5.21%/yr for VNQ. A 0.55 correlation means they provide meaningful diversification when combined. VXUS charges 0.05%/yr vs 0.13%/yr for VNQ.

Performance

VXUS vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Total International Stock ETF (VXUS) 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, VXUS achieves a 14.25% return, which is significantly higher than VNQ's 7.83% return. Over the past 10 years, VXUS has outperformed VNQ with an annualized return of 9.76%, while VNQ has yielded a comparatively lower 5.21% annualized return.

VXUS

• 1D: -0.99%
• 1M: 4.68%
• YTD: 14.25%
• 6M: 16.92%
• 1Y: 32.01%
• 3Y*: 19.30%
• 5Y*: 8.46%
• 10Y*: 9.76%

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)

VXUS vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VXUS Vanguard Total International Stock ETF	14.25%	32.35%	5.08%	15.86%	-16.08%	8.98%	10.66%	21.75%	-14.43%	27.46%
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 VXUS and VNQ is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Jan 31, 2011	0.55

The correlation between VXUS and VNQ shifts across timeframes, from 0.46 (1 year) to 0.57 (5 years), reflecting how their relationship changes across market environments.

VXUS vs. VNQ - Sectors Allocation Comparison

Sectors	VXUS	VNQ
Financial Services	22.3%	0.1%
Technology	18.1%	0.3%
Industrials	16.1%	0.0%
Consumer Cyclical	8.4%	-
Basic Materials	7.6%	1.1%
Healthcare	7.1%	-
Energy	5.2%	0.1%
Consumer Defensive	5.0%	-
Communication Services	4.4%	0.6%
Utilities	3.2%	-
Real Estate	2.6%	97.3%

Return for Risk

VXUS vs. VNQ — Risk / Return Rank

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

VXUS

VXUS Risk / Return Rank: 60
VXUS Sharpe Ratio Rank: 61
VXUS Sortino Ratio Rank: 60
VXUS Omega Ratio Rank: 62
VXUS Calmar Ratio Rank: 56
VXUS Martin Ratio Rank: 61

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.

VXUS vs. VNQ - Risk-Adjusted Trends Comparison

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

	VXUS	VNQ	Difference
Sharpe ratio Return per unit of total volatility	2.12	0.76	+1.35
Sortino ratio Return per unit of downside risk	2.90	1.12	+1.78
Omega ratio Gain probability vs. loss probability	1.39	1.14	+0.25
Calmar ratio Return relative to maximum drawdown	2.85	1.20	+1.65
Martin ratio Return relative to average drawdown	11.14	3.78	+7.36
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VXUS vs. VNQ - Sharpe Ratio Comparison

The current VXUS Sharpe Ratio is 2.12, which is higher than the VNQ Sharpe Ratio of 0.76. The chart below compares the historical Sharpe Ratios of VXUS 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

	VXUS	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.12	0.76	+1.35
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.12	+0.41
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.57	0.25	+0.32
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.26	+0.12

Drawdowns

VXUS vs. VNQ - Drawdown Comparison

The maximum VXUS drawdown since its inception was -35.97%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for VXUS and VNQ.

Drawdown Indicators

	VXUS	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-35.97%	-73.07%	+37.10%
Max Drawdown (1Y) Largest decline over 1 year	-11.27%	-8.34%	-2.93%
Max Drawdown (3Y) Largest decline over 3 years	-13.58%	-17.46%	+3.88%
Max Drawdown (5Y) Largest decline over 5 years	-29.44%	-34.48%	+5.04%
Max Drawdown (10Y) Largest decline over 10 years	-35.97%	-42.40%	+6.43%
Current Drawdown Current decline from peak	-0.99%	-3.75%	+2.76%
Average Drawdown Average peak-to-trough decline	-8.22%	-13.63%	+5.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.88%	2.64%	+0.24%

Volatility

VXUS vs. VNQ - Volatility Comparison

Vanguard Total International Stock ETF (VXUS) has a higher volatility of 5.60% compared to Vanguard Real Estate ETF (VNQ) at 3.72%. This indicates that VXUS'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

	VXUS	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.60%	3.72%	+1.88%
Volatility (6M) Calculated over the trailing 6-month period	13.00%	9.26%	+3.74%
Volatility (1Y) Calculated over the trailing 1-year period	15.21%	13.16%	+2.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.05%	18.80%	-2.75%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.16%	20.70%	-3.54%

VXUS vs. VNQ - Expense Ratio Comparison

VXUS has a 0.05% 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

VXUS vs. VNQ - Dividend Comparison

VXUS's dividend yield for the trailing twelve months is around 2.66%, 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%
VXUS Vanguard Total International Stock ETF	2.66%	3.18%	3.37%	3.24%	3.09%	3.10%	2.14%	3.06%	3.18%	2.73%	2.93%	2.83%

Frequently Asked Questions

Can I hold both VXUS and VNQ in my portfolio?

VXUS and VNQ have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VXUS or VNQ?

VXUS has higher volatility (5.60%) compared to VNQ (3.72%). In terms of maximum drawdown, VXUS dropped -35.97% vs VNQ's -73.07%.

Which ETF is better, VXUS or VNQ?

On 10-year performance, VXUS leads with 9.76% vs 5.21% for VNQ. On fees, VXUS is cheaper at 0.05% per year. On volatility, VNQ has been the lower-risk option at 3.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VXUS or VNQ?

Over the 10-year period, VXUS has performed better with a 9.76% return vs 5.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VXUS or VNQ?

VXUS is cheaper with a 0.05% expense ratio, compared with 0.13% for VNQ.

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

VNQ has the higher dividend yield at 3.69%, compared with 2.66% for VXUS.

What is the main difference between VXUS and VNQ?

VXUS is categorized as Global Equities, while VNQ is REIT. VXUS tracks FTSE Global All Cap ex US Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. Their fees differ too: 0.05% for VXUS and 0.13% for VNQ.

Which has better risk-adjusted returns?

VXUS currently has the higher Sharpe Ratio (2.12 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.