VBK vs VNQ
Vanguard Small Cap Growth ETF vs Vanguard Real Estate ETF
Quick Verdict
VBK has a lower expense ratio. VBK delivered stronger 1-year returns. VBK offers more diversification with 542 holdings.
Side-by-Side Comparison
| Metric | VBK | VNQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.05% | 0.13% | |
| AUM | $24.8B | $38.2B | |
| Dividend Yield | 0.57% | 3.52% | |
| Holdings | 561 | 144 | |
| YTD Return | +17.33% | +11.85% | |
| 1Y Return | +29.87% | +14.02% | |
| 3Y Return (annualized) | +17.09% | +9.49% | |
| 5Y Return (annualized) | +5.39% | +2.24% | |
| Volatility (annualized) | 19.6% | 21.4% | |
| Max Drawdown | -59.4% | -75.8% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Sep 23, 2004 |
VBK vs VNQ Performance
Vanguard Small Cap Growth ETF (VBK) is a ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US). Over the past year VBK returned +29.87% while VNQ returned +14.02%. Year to date, VBK is up 17.33% versus a gain of 11.85% for VNQ.
Over three years, VBK compounded at +17.09% per year against +9.49% for VNQ; over five years the annualized figures are +5.39% and +2.24% respectively. Across the full 22-year window we track, VBK has the edge at +9.39% annualized vs +4.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.4% compared with 19.6% for VBK. 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 -59.4% for VBK 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VBK 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, VBK currently yields 0.57% against 3.52% for VNQ.
Holdings Overlap
VBK and VNQ share 23 holdings out of 663 unique holdings combined, representing a 3.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VBK or VNQ?
VBK has an expense ratio of 0.05% while VNQ charges 0.13%. VBK is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, VBK or VNQ?
Over the past year VBK returned +29.87% vs +14.02% for VNQ, so VBK leads on 1-year performance. Over the longest common window we track (22 years), VBK annualized +9.39% vs +4.07% for VNQ. Past performance does not guarantee future results.
Which is riskier, VBK or VNQ?
VNQ has been the more volatile fund at 21.4% annualized versus 19.6% for VBK. Worst drawdown: VBK -59.4% vs VNQ -75.8%.
Should I hold both VBK and VNQ?
VBK and VNQ have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VBK and VNQ?
VBK and VNQ share 23 common holdings with a 3.7% weight overlap. Combined, they hold 663 unique securities.
Which pays a higher dividend, VBK or VNQ?
VBK yields 0.57% while VNQ yields 3.52%, so VNQ currently pays the higher dividend yield.
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