VYMI vs. VNQ

Last updated Jun 13, 2026

VYMI (Vanguard International High Dividend Yield ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - VYMI is a Dividend fund tracking the FTSE All-World ex US High Dividend Yield 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, VYMI returned 11.24%/yr vs 5.65%/yr for VNQ. A 0.51 correlation means they provide meaningful diversification when combined. VYMI charges 0.07%/yr vs 0.13%/yr for VNQ.

Performance

VYMI vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard International High Dividend Yield ETF (VYMI) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with VYMI having a 12.90% return and VNQ slightly lower at 12.51%. Over the past 10 years, VYMI has outperformed VNQ with an annualized return of 11.24%, while VNQ has yielded a comparatively lower 5.65% annualized return.

VYMI

• 1D: 0.54%
• 1M: 1.26%
• YTD: 12.90%
• 6M: 14.90%
• 1Y: 29.88%
• 3Y*: 21.73%
• 5Y*: 12.29%
• 10Y*: 11.24%

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)

VYMI vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VYMI Vanguard International High Dividend Yield ETF	12.90%	38.05%	7.06%	17.07%	-7.02%	15.39%	-1.11%	18.43%	-12.65%	22.36%
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 VYMI and VNQ is 0.54, 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	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.55
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 Mar 2, 2016	0.51

The correlation between VYMI and VNQ has been stable across timeframes, ranging from 0.51 to 0.57 - a consistent structural relationship.

VYMI vs. VNQ - Sectors Allocation Comparison

Sectors	VYMI	VNQ
Financial Services	41.9%	0.1%
Energy	9.5%	0.1%
Consumer Defensive	7.0%	-
Basic Materials	6.8%	1.1%
Healthcare	6.6%	-
Industrials	6.6%	0.0%
Consumer Cyclical	6.5%	-
Utilities	5.6%	-
Technology	4.3%	0.3%
Communication Services	4.0%	0.6%
Real Estate	1.3%	97.3%

Return for Risk

VYMI vs. VNQ — Risk / Return Rank

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

VYMI

VYMI Risk / Return Rank: 76
VYMI Sharpe Ratio Rank: 82
VYMI Sortino Ratio Rank: 80
VYMI Omega Ratio Rank: 80
VYMI Calmar Ratio Rank: 68
VYMI 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.

VYMI vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard International High Dividend Yield ETF (VYMI) 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.

	VYMI	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	2.26	0.96	+1.30
Sortino ratio: Return per unit of downside risk	3.08	1.39	+1.69
Omega ratio: Gain probability vs. loss probability	1.41	1.17	+0.23
Calmar ratio: Return relative to maximum drawdown	2.96	1.56	+1.41
Martin ratio: Return relative to average drawdown	11.60	4.90	+6.70

VYMI vs. VNQ - Sharpe Ratio Comparison

The current VYMI Sharpe Ratio is 2.26, which is higher than the VNQ Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of VYMI 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

VYMI vs. VNQ - Drawdown Comparison

The maximum VYMI drawdown since its inception was -40.00%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for VYMI and VNQ.

Drawdown Indicators

	VYMI	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-40.00%	-73.07%	+33.07%
Max Drawdown (1Y) Largest decline over 1 year	-10.14%	-8.34%	-1.80%
Max Drawdown (3Y) Largest decline over 3 years	-12.84%	-17.46%	+4.62%
Max Drawdown (5Y) Largest decline over 5 years	-24.05%	-34.48%	+10.43%
Max Drawdown (10Y) Largest decline over 10 years	-40.00%	-42.40%	+2.40%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-6.30%	-13.61%	+7.31%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.59%	2.65%	-0.06%

Volatility

VYMI vs. VNQ - Volatility Comparison

The current volatility for Vanguard International High Dividend Yield ETF (VYMI) is 4.40%, while Vanguard Real Estate ETF (VNQ) has a volatility of 4.72%. This indicates that VYMI 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

	VYMI	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.40%	4.72%	-0.32%
Volatility (6M) Calculated over the trailing 6-month period	11.15%	9.77%	+1.38%
Volatility (1Y) Calculated over the trailing 1-year period	13.33%	13.54%	-0.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.90%	18.84%	-3.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.85%	20.72%	-3.87%

VYMI vs. VNQ - Expense Ratio Comparison

VYMI 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

VYMI vs. VNQ - Dividend Comparison

VYMI's dividend yield for the trailing twelve months is around 3.39%, 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%
VYMI Vanguard International High Dividend Yield ETF	3.39%	3.68%	4.84%	4.58%	4.70%	4.30%	3.22%	4.20%	4.29%	3.21%	2.39%	0.00%

Frequently Asked Questions

Can I hold both VYMI and VNQ in my portfolio?

VYMI and VNQ have a correlation of 0.54, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VYMI or VNQ?

VNQ has higher volatility (4.72%) compared to VYMI (4.40%). In terms of maximum drawdown, VYMI dropped -40.00% vs VNQ's -73.07%.

Which ETF is better, VYMI or VNQ?

On 10-year performance, VYMI leads with 11.24% vs 5.65% for VNQ. On fees, VYMI is cheaper at 0.07% per year. On volatility, VYMI has been the lower-risk option at 4.40%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VYMI or VNQ?

Over the 10-year period, VYMI has performed better with a 11.24% return vs 5.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VYMI or VNQ?

VYMI is cheaper with a 0.07% expense ratio, compared with 0.13% for VNQ.

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

VNQ has the higher dividend yield at 3.54%, compared with 3.39% for VYMI.

What is the main difference between VYMI and VNQ?

VYMI is categorized as Dividend, while VNQ is REIT. VYMI tracks FTSE All-World ex US High Dividend Yield Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. Their fees differ too: 0.07% for VYMI and 0.13% for VNQ.

Which has better risk-adjusted returns?

VYMI currently has the higher Sharpe Ratio (2.26 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.