WOOD vs. VNQ
WOOD (iShares Global Timber & Forestry ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - WOOD is a Materials fund tracking the S&P Global Timber & Forestry 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, WOOD returned 5.43%/yr vs 4.90%/yr for VNQ. A 0.59 correlation means they provide meaningful diversification when combined. WOOD charges 0.46%/yr vs 0.13%/yr for VNQ.
Performance
WOOD vs. VNQ - Performance Comparison
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Returns By Period
In the year-to-date period, WOOD achieves a -5.98% return, which is significantly lower than VNQ's 12.72% return. Over the past 10 years, WOOD has outperformed VNQ with an annualized return of 5.43%, while VNQ has yielded a comparatively lower 4.90% annualized return.
WOOD
- 1D
- -0.96%
- 1M
- -0.55%
- 6M
- -10.71%
- YTD
- -5.98%
- 1Y
- -8.35%
- 3Y*
- -1.55%
- 5Y*
- -3.59%
- 10Y*
- 5.43%
VNQ
- 1D
- 0.52%
- 1M
- 0.19%
- 6M
- 11.34%
- YTD
- 12.72%
- 1Y
- 13.21%
- 3Y*
- 8.55%
- 5Y*
- 2.42%
- 10Y*
- 4.90%
WOOD vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
WOOD iShares Global Timber & Forestry ETF | -5.98% | -3.27% | -4.21% | 13.84% | -19.39% | 17.03% | 20.36% | 19.75% | -17.73% | 34.49% |
VNQ Vanguard Real Estate ETF | 12.72% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
Correlation
The correlation between WOOD and VNQ is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.58 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.52 |
Correlation (All Time) Calculated using the full available price history since Jun 25, 2008 | 0.59 |
The correlation between WOOD and VNQ has been stable across timeframes, ranging from 0.50 to 0.59 - a consistent structural relationship.
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Return for Risk
WOOD vs. VNQ — Risk / Return Rank
WOOD
VNQ
WOOD vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Global Timber & Forestry ETF (WOOD) 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.
| WOOD | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.40 | ||
| Sortino ratioReturn per unit of downside risk | -1.92 | ||
| Omega ratioGain probability vs. loss probability | 0.94 | 1.17 | -0.23 |
| Calmar ratioReturn relative to maximum drawdown | -0.39 | 1.59 | -1.98 |
| Martin ratioReturn relative to average drawdown | -0.77 | 4.99 | -5.76 |
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Drawdowns
WOOD vs. VNQ - Drawdown Comparison
The maximum WOOD drawdown since its inception was -63.25%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for WOOD and VNQ.
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Drawdown Indicators
| WOOD | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -63.25% | -73.07% | +9.82% |
Max Drawdown (1Y)Largest decline over 1 year | -21.64% | -8.34% | -13.30% |
Max Drawdown (3Y)Largest decline over 3 years | -22.79% | -17.46% | -5.33% |
Max Drawdown (5Y)Largest decline over 5 years | -30.71% | -34.48% | +3.77% |
Max Drawdown (10Y)Largest decline over 10 years | -50.20% | -42.40% | -7.80% |
Current DrawdownCurrent decline from peak | -23.52% | -0.85% | -22.67% |
Average DrawdownAverage peak-to-trough decline | -14.81% | -13.57% | -1.24% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.94% | 2.65% | +8.29% |
Volatility
WOOD vs. VNQ - Volatility Comparison
iShares Global Timber & Forestry ETF (WOOD) has a higher volatility of 5.42% compared to Vanguard Real Estate ETF (VNQ) at 4.93%. This indicates that WOOD'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.
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Volatility by Period
| WOOD | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.42% | 4.93% | +0.49% |
Volatility (6M)Calculated over the trailing 6-month period | 14.55% | 10.62% | +3.93% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.71% | 13.94% | +4.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.74% | 18.89% | +0.85% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.71% | 20.75% | +0.96% |
WOOD vs. VNQ - Expense Ratio Comparison
WOOD has a 0.46% expense ratio, which is higher than VNQ's 0.13% expense ratio.
Dividends
WOOD vs. VNQ - Dividend Comparison
WOOD's dividend yield for the trailing twelve months is around 2.51%, less than VNQ's 3.55% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 3.55% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
WOOD iShares Global Timber & Forestry ETF | 2.51% | 2.51% | 2.09% | 1.64% | 2.26% | 1.24% | 0.98% | 1.85% | 2.82% | 1.19% | 1.65% | 2.04% |
Frequently Asked Questions
WOOD and VNQ have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
WOOD has higher volatility (5.42%) compared to VNQ (4.93%). In terms of maximum drawdown, WOOD dropped -63.25% vs VNQ's -73.07%.
On 10-year performance, WOOD leads with 5.43% vs 4.90% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 4.93%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, WOOD has performed better with a 5.43% return vs 4.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.46% for WOOD.
VNQ has the higher dividend yield at 3.55%, compared with 2.51% for WOOD.
WOOD is categorized as Materials, while VNQ is REIT. WOOD tracks S&P Global Timber & Forestry Index, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.46% for WOOD and 0.13% for VNQ.
VNQ currently has the higher Sharpe Ratio (0.95 vs -0.45), 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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