EDV vs VNQ

Quick Verdict

EDV has a lower expense ratio. VNQ delivered stronger 1-year returns. VNQ offers more diversification with 144 holdings.

Lower Fees: EDVHigher Returns: VNQMore Diversified: VNQ

Side-by-Side Comparison

MetricEDVVNQWinner
Expense Ratio0.05%0.13%
AUM$3.5B$38.2B
Dividend Yield4.83%3.52%
Holdings83144
YTD Return-5.81%+12.08%
1Y Return-4.23%+13.61%
3Y Return (annualized)-4.61%+9.82%
5Y Return (annualized)-12.39%+2.12%
Volatility (annualized)21.8%21.4%
Max Drawdown-62.0%-75.8%
Fund FamilyVanguard (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionDec 6, 2007Sep 23, 2004

EDV vs VNQ Performance

Vanguard Extended Duration Treasury ETF (EDV) is a ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US). Over the past year EDV returned -4.23% while VNQ returned +13.61%. Year to date, EDV is down 5.81% versus a gain of 12.08% for VNQ.

Over three years, EDV compounded at -4.61% per year against +9.82% for VNQ; over five years the annualized figures are -12.39% and +2.12% respectively. Across the full 19-year window we track, VNQ has the edge at +4.08% annualized vs -1.49%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

EDV has been the more volatile fund, with annualized monthly volatility of 21.8% compared with 21.4% for VNQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -62.0% for EDV and -75.8% for VNQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.10. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

EDV charges 0.05% per year while VNQ charges 0.13%. On a $10,000 position that is $5 vs $13 annually, a gap of $8 per year that compounds over a long holding period. On income, EDV currently yields 4.83% against 3.52% for VNQ.

Holdings Overlap

0.0%overlap

EDV and VNQ share 0 holdings out of 220 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, EDV or VNQ?

EDV has an expense ratio of 0.05% while VNQ charges 0.13%. EDV is the cheaper option. On a $10,000 investment, that is $8 per year of difference.

Which performed better, EDV or VNQ?

Over the past year EDV returned -4.23% vs +13.61% for VNQ, so VNQ leads on 1-year performance. Over the longest common window we track (19 years), EDV annualized -1.49% vs +4.08% for VNQ. Past performance does not guarantee future results.

Which is riskier, EDV or VNQ?

EDV has been the more volatile fund at 21.8% annualized versus 21.4% for VNQ. Worst drawdown: EDV -62.0% vs VNQ -75.8%.

Should I hold both EDV and VNQ?

EDV and VNQ have a monthly-return correlation of 0.10, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between EDV and VNQ?

EDV and VNQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 220 unique securities.

Which pays a higher dividend, EDV or VNQ?

EDV yields 4.83% while VNQ yields 3.52%, so EDV currently pays the higher dividend yield.

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