XMEU.L vs. VNQ

Last updated Jun 5, 2026

XMEU.L (Xtrackers MSCI Europe UCITS ETF 1C) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - XMEU.L is a Europe Equities fund tracking the MSCI Europe NR EUR, 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, XMEU.L returned 10.17%/yr vs 6.40%/yr for VNQ. At a 0.26 correlation, their price movements are largely independent. XMEU.L charges 0.12%/yr vs 0.13%/yr for VNQ.

Performance

XMEU.L vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in Xtrackers MSCI Europe UCITS ETF 1C (XMEU.L) and Vanguard Real Estate ETF (VNQ). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

XMEU.L is traded in GBp, while VNQ is traded in USD. To make them comparable, the VNQ values have been converted to GBp using the latest available exchange rates.

Returns By Period

In the year-to-date period, XMEU.L achieves a 6.81% return, which is significantly lower than VNQ's 11.66% return. Over the past 10 years, XMEU.L has outperformed VNQ with an annualized return of 10.17%, while VNQ has yielded a comparatively lower 6.40% annualized return.

XMEU.L

• 1D: 0.54%
• 1M: 1.15%
• YTD: 6.81%
• 6M: 8.75%
• 1Y: 18.92%
• 3Y*: 13.78%
• 5Y*: 10.12%
• 10Y*: 10.17%

VNQ

• 1D: 1.35%
• 1M: 1.58%
• YTD: 11.66%
• 6M: 9.76%
• 1Y: 14.49%
• 3Y*: 7.38%
• 5Y*: 3.92%
• 10Y*: 6.40%

*Multi-year figures are annualized to reflect compound growth (CAGR)

XMEU.L vs. VNQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XMEU.L Xtrackers MSCI Europe UCITS ETF 1C	6.81%	25.81%	3.60%	13.26%	-3.48%	16.84%	2.45%	19.45%	-9.45%	14.83%
VNQ Vanguard Real Estate ETF	11.66%	-4.11%	6.64%	6.26%	-17.48%	41.87%	-7.41%	24.01%	-0.45%	-4.17%

Correlation

The correlation between XMEU.L and VNQ is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.28
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.27
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since Sep 10, 2007	0.26

XMEU.L vs. VNQ - Sectors Allocation Comparison

Sectors	XMEU.L	VNQ
Financial Services	23.6%	0.1%
Industrials	20.2%	0.0%
Healthcare	13.3%	-
Technology	8.7%	0.3%
Consumer Defensive	8.0%	-
Consumer Cyclical	6.4%	-
Energy	5.4%	0.1%
Basic Materials	5.0%	1.1%
Utilities	4.8%	-
Communication Services	3.7%	0.6%
Real Estate	0.8%	97.3%

Return for Risk

XMEU.L vs. VNQ — Risk / Return Rank

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

XMEU.L

XMEU.L Risk / Return Rank: 44
XMEU.L Sharpe Ratio Rank: 47
XMEU.L Sortino Ratio Rank: 46
XMEU.L Omega Ratio Rank: 49
XMEU.L Calmar Ratio Rank: 38
XMEU.L Martin Ratio Rank: 42

VNQ

VNQ Risk / Return Rank: 28
VNQ Sharpe Ratio Rank: 27
VNQ Sortino Ratio Rank: 26
VNQ Omega Ratio Rank: 26
VNQ Calmar Ratio Rank: 31
VNQ Martin Ratio Rank: 33

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.

XMEU.L vs. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Xtrackers MSCI Europe UCITS ETF 1C (XMEU.L) 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.

	XMEU.L	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	1.60	1.12	+0.48
Sortino ratio: Return per unit of downside risk	2.25	1.62	+0.63
Omega ratio: Gain probability vs. loss probability	1.30	1.20	+0.11
Calmar ratio: Return relative to maximum drawdown	1.84	1.96	-0.11
Martin ratio: Return relative to average drawdown	6.65	5.51	+1.14
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XMEU.L vs. VNQ - Sharpe Ratio Comparison

The current XMEU.L Sharpe Ratio is 1.60, which is higher than the VNQ Sharpe Ratio of 1.12. The chart below compares the historical Sharpe Ratios of XMEU.L 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

	XMEU.L	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.60	1.12	+0.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.73	0.22	+0.51
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.68	0.31	+0.37
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.28	+0.15

Drawdowns

XMEU.L vs. VNQ - Drawdown Comparison

The maximum XMEU.L drawdown since its inception was -44.27%, smaller than the maximum VNQ drawdown of -57.05%. Use the drawdown chart below to compare losses from any high point for XMEU.L and VNQ.

Drawdown Indicators

	XMEU.L	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-44.27%	-57.05%	+12.78%
Max Drawdown (1Y) Largest decline over 1 year	-10.32%	-7.44%	-2.88%
Max Drawdown (3Y) Largest decline over 3 years	-13.16%	-18.24%	+5.08%
Max Drawdown (5Y) Largest decline over 5 years	-15.60%	-28.76%	+13.16%
Max Drawdown (10Y) Largest decline over 10 years	-28.55%	-35.51%	+6.96%
Current Drawdown Current decline from peak	-1.11%	-2.39%	+1.28%
Average Drawdown Average peak-to-trough decline	-5.88%	-10.79%	+4.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.86%	2.64%	+0.22%

Volatility

XMEU.L vs. VNQ - Volatility Comparison

Xtrackers MSCI Europe UCITS ETF 1C (XMEU.L) and Vanguard Real Estate ETF (VNQ) have volatilities of 3.78% and 3.64%, 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.

Volatility by Period

	XMEU.L	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.78%	3.64%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	9.93%	9.59%	+0.34%
Volatility (1Y) Calculated over the trailing 1-year period	11.90%	13.00%	-1.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.80%	17.60%	-3.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.86%	20.61%	-5.75%

XMEU.L vs. VNQ - Expense Ratio Comparison

XMEU.L has a 0.12% 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

XMEU.L vs. VNQ - Dividend Comparison

XMEU.L has not paid dividends to shareholders, while VNQ's dividend yield for the trailing twelve months is around 3.60%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VNQ Vanguard Real Estate ETF	3.60%	3.92%	3.85%	3.95%	3.91%	2.56%	3.93%	3.39%	4.74%	4.23%	4.82%	3.92%
XMEU.L Xtrackers MSCI Europe UCITS ETF 1C	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.12%	0.00%

Frequently Asked Questions

Can I hold both XMEU.L and VNQ in my portfolio?

XMEU.L and VNQ have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XMEU.L or VNQ?

On fees, XMEU.L is cheaper at 0.12% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XMEU.L or VNQ?

XMEU.L is cheaper with a 0.12% expense ratio, compared with 0.13% for VNQ.

What is the main difference between XMEU.L and VNQ?

XMEU.L is categorized as Europe Equities, while VNQ is REIT. XMEU.L tracks MSCI Europe NR EUR, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: Xtrackers and Vanguard. Their fees differ too: 0.12% for XMEU.L and 0.13% for VNQ.