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 5.97%/yr vs 5.44%/yr for VNQ. A 0.60 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 -7.28% return, which is significantly lower than VNQ's 11.77% return. Over the past 10 years, WOOD has outperformed VNQ with an annualized return of 5.97%, while VNQ has yielded a comparatively lower 5.44% annualized return.
WOOD
- 1D
- -1.42%
- 1M
- 1.59%
- YTD
- -7.28%
- 6M
- -6.36%
- 1Y
- -6.77%
- 3Y*
- -0.01%
- 5Y*
- -3.45%
- 10Y*
- 5.97%
VNQ
- 1D
- 1.31%
- 1M
- 1.13%
- YTD
- 11.77%
- 6M
- 12.16%
- 1Y
- 11.59%
- 3Y*
- 11.30%
- 5Y*
- 2.83%
- 10Y*
- 5.44%
WOOD vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
WOOD iShares Global Timber & Forestry ETF | -7.28% | -3.27% | -4.21% | 13.84% | -19.39% | 17.03% | 20.36% | 19.75% | -17.73% | 34.49% |
VNQ Vanguard Real Estate ETF | 11.77% | 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 0.53, 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 | 0.53 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.55 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
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 | 0.60 |
The correlation between WOOD and VNQ has been stable across timeframes, ranging from 0.52 to 0.60 - 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 | -1.21 | ||
| Sortino ratioReturn per unit of downside risk | -1.62 | ||
| Omega ratioGain probability vs. loss probability | 0.96 | 1.15 | -0.20 |
| Calmar ratioReturn relative to maximum drawdown | -0.31 | 1.40 | -1.71 |
| Martin ratioReturn relative to average drawdown | -0.67 | 4.37 | -5.04 |
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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 | -24.58% | -0.66% | -23.92% |
Average DrawdownAverage peak-to-trough decline | -14.79% | -13.60% | -1.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.14% | 2.66% | +7.48% |
Volatility
WOOD vs. VNQ - Volatility Comparison
iShares Global Timber & Forestry ETF (WOOD) and Vanguard Real Estate ETF (VNQ) have volatilities of 5.12% and 5.19%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. 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 | 5.12% | 5.19% | -0.07% |
Volatility (6M)Calculated over the trailing 6-month period | 14.22% | 10.20% | +4.02% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.90% | 13.84% | +5.06% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.74% | 18.86% | +0.88% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.76% | 20.75% | +1.01% |
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 2.55%, less than VNQ's 3.56% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 3.56% | 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 | 2.55% | 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 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VNQ has higher volatility (5.19%) compared to WOOD (5.12%). In terms of maximum drawdown, WOOD dropped -63.25% vs VNQ's -73.07%.
On 10-year performance, WOOD leads with 5.97% vs 5.44% for VNQ. On fees, VNQ is cheaper at 0.13% per year. Their volatility is very similar. 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 5.97% return vs 5.44%. 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 3.56%, compared with 2.55% 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 (0.85 vs -0.36), 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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