VEA vs VNQ
Vanguard FTSE Developed Markets ETF vs Vanguard Real Estate ETF
Which is better, VEA or VNQ?
Large Cap Blend against Mid Cap Blend.
VEA has a lower expense ratio. VEA led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VEA | VNQ |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.13% |
| AUM | $238.1B | $38.1B |
| Dividend Yield | 2.49% | 3.60% |
| Holdings | 3,904 | 144 |
| YTD Return | +13.61%Best | +3.98% |
| 1Y Return | +20.69%Best | +1.98% |
| 3Y Return (annualized) | +22.33%Best | +11.41% |
| 5Y Return (annualized) | +10.59%Best | +1.04% |
| Volatility (annualized) | 17.7%Best | 22.0% |
| Max Drawdown | -62.9%Best | -72.4% |
| $10,000 over 5 years | $16,542Best | $10,531 |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Blend |
| Inception | Jul 20, 2007 | Sep 23, 2004 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2007 to Oct 2, 2026 (19.2 years).
VEA vs VNQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 19.2 years both funds cover.
VEA vs VNQ Performance
Vanguard FTSE Developed Markets ETF (VEA) is an ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year VEA returned +20.69% while VNQ returned +1.98%. Year to date, VEA is up 13.61% versus a gain of 3.98% for VNQ.
Over three years, VEA compounded at +22.33% per year against +11.41% for VNQ; over five years the annualized figures are +10.59% and +1.04% respectively. Across the full 19-year window we track, VEA has the edge at +2.99% annualized vs +2.71%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 22.0% compared with 17.7% for VEA. 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 -62.9% for VEA and -72.4% for VNQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
VEA charges 0.03% per year while VNQ charges 0.13%. On a $10,000 position that is $3 vs $13 annually, a gap of $10 per year that compounds over a long holding period. On income, VEA currently yields 2.49% against 3.60% for VNQ.
Holdings Overlap
At least 0.3% of VNQ's money is in holdings VEA also owns.
Stated as a floor: for VEA, our book for it covers 94.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
1 positions in common, counted across the 3,754 positions we hold weights for in VEA and 139 in VNQ, against full books of 3,904 and 144.
What only one of them owns
Measured across the 3,754 and 139 positions we hold weights for.
VEA holds 24 positions VNQ does not, 2.2% of the fund.
Largest: SHEL 0.79%, SAN 0.64%, SUNB 0.09%, PBA 0.09%, QSR 0.08%
Top Shared Holdings
| Stock | Weight in VEA | Weight in VNQ | Difference |
|---|---|---|---|
| MKLMarkel Group Inc | 0.13% | 0.33% | 0.20% |
You are not choosing between two funds in isolation.
Whichever of VEA and VNQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VEA or VNQ?
VEA has an expense ratio of 0.03% while VNQ charges 0.13%. VEA is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, VEA or VNQ?
Over the past year VEA returned +20.69% vs +1.98% for VNQ, so VEA leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +2.99% vs +2.71% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEA or VNQ?
VNQ has been the more volatile fund at 22.0% annualized versus 17.7% for VEA. Worst drawdown: VEA -62.9% vs VNQ -72.4%.
Should I hold both VEA and VNQ?
VEA and VNQ have a monthly-return correlation of 0.72, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VEA or VNQ?
VEA yields 2.49% while VNQ yields 3.60%, so VNQ currently pays the higher dividend yield.
Is VNQ better than VEA?
VEA has a lower expense ratio. VEA led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.