VIG vs VNQ
Vanguard Dividend Appreciation ETF vs Vanguard Real Estate ETF
Which is better, VIG or VNQ?
Large Cap Blend against Mid Cap Blend.
VIG has a lower expense ratio. VIG led over 1Y, 3Y, 5Y and the full window. VIG is less concentrated, with 32.0% of the fund in its ten largest positions against 54.1%.
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 | VIG | VNQ |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.13% |
| AUM | $111.4B | $39.3B |
| Dividend Yield | 1.48% | 3.49% |
| Holdings | 335 | 144 |
| YTD Return | +8.65%Best | +8.41% |
| 1Y Return | +12.57%Best | +6.76% |
| 3Y Return (annualized) | +15.69%Best | +9.12% |
| 5Y Return (annualized) | +10.24%Best | +1.40% |
| Volatility (annualized) | 13.3%Best | 21.8% |
| Max Drawdown | -48.2%Best | -75.8% |
| $10,000 over 5 years | $16,282Best | $10,720 |
| Top 10 Weight | 32.0%Best | 54.1% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Mid Cap Blend |
| Inception | Apr 21, 2006 | Sep 23, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Apr 27, 2006 to Sep 10, 2026 (20.4 years).
VIG 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 20.4 years both funds cover.
VIG vs VNQ Performance
Vanguard Dividend Appreciation ETF (VIG) is an ETF from Vanguard (US) and Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US). Over the past year VIG returned +12.57% while VNQ returned +6.76%. Year to date, VIG is up 8.65% versus a gain of 8.41% for VNQ.
Over three years, VIG compounded at +15.69% per year against +9.12% for VNQ; over five years the annualized figures are +10.24% and +1.40% respectively. Across the full 20-year window we track, VIG has the edge at +8.48% annualized vs +2.83%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.8% compared with 13.3% for VIG. 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 -48.2% for VIG and -75.8% 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 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VIG charges 0.04% per year while VNQ charges 0.13%. On a $10,000 position that is $4 vs $13 annually, a gap of $9 per year that compounds over a long holding period. On income, VIG currently yields 1.48% against 3.49% for VNQ.
Holdings Overlap
We hold position weights for 331 holdings in VIG and 144 in VNQ, totalling 99.6% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 331 positions we hold weights for in VIG and 144 in VNQ, against full books of 335 and 144.
What only one of them owns
Our book lists 141 positions for VNQ that do not appear in our book for VIG (97.3% of the fund), and 310 for VIG that do not appear in VNQ (99.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of VIG 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, VIG or VNQ?
VIG has an expense ratio of 0.04% while VNQ charges 0.13%. VIG is the cheaper option, by $9 a year on a $10,000 investment.
Which performed better, VIG or VNQ?
Over the past year VIG returned +12.57% vs +6.76% for VNQ, so VIG leads on 1-year performance. Over the longest common window we track (20 years), VIG annualized +8.48% vs +2.83% for VNQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VIG or VNQ?
VNQ has been the more volatile fund at 21.8% annualized versus 13.3% for VIG. Worst drawdown: VIG -48.2% vs VNQ -75.8%.
Should I hold both VIG and VNQ?
VIG and VNQ have a monthly-return correlation of 0.74, 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, VIG or VNQ?
VIG yields 1.48% while VNQ yields 3.49%, so VNQ currently pays the higher dividend yield.
Is VNQ better than VIG?
VIG has a lower expense ratio. VIG led over 1Y, 3Y, 5Y and the full window. VIG is less concentrated, with 32.0% of the fund in its ten largest positions against 54.1%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.