VNQ vs VO
Vanguard Real Estate ETF vs Vanguard Morningstar Mid-Cap ETF
Which is better, VNQ or VO?
VO has been ahead.
VO has a lower expense ratio. VO led over 1Y, 3Y, 5Y and the full window. VO is less concentrated, with 9.1% of the fund in its ten largest positions against 49.8%.
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 | VNQ | VO |
|---|---|---|
| Expense Ratio | 0.13% | 0.03%Best |
| AUM | $38.1B | $107.4B |
| Dividend Yield | 3.60% | 1.30% |
| Holdings | 144 | 287 |
| YTD Return | +3.98% | +9.95%Best |
| 1Y Return | +1.98% | +9.67%Best |
| 3Y Return (annualized) | +11.41% | +18.04%Best |
| 5Y Return (annualized) | +1.04% | +7.75%Best |
| Volatility (annualized) | 21.4% | 17.0%Best |
| Max Drawdown | -75.8% | -60.3%Best |
| $10,000 over 5 years | $10,531 | $14,524Best |
| Top 10 Weight | 49.8% | 9.1%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Mid Cap Blend |
| Inception | Sep 23, 2004 | Jan 26, 2004 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2004 to Oct 2, 2026 (22 years).
VNQ vs VO 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 22 years both funds cover.
VNQ vs VO Performance
Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US) and Vanguard Morningstar Mid-Cap ETF (VO) is an ETF from Vanguard (US). Over the past year VNQ returned +1.98% while VO returned +9.67%. Year to date, VNQ is up 3.98% versus a gain of 9.95% for VO.
Over three years, VNQ compounded at +11.41% per year against +18.04% for VO; over five years the annualized figures are +1.04% and +7.75% respectively. Across the full 22-year window we track, VO has the edge at +9.19% annualized vs +3.70%.
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 17.0% for VO. 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 -75.8% for VNQ and -60.3% for VO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VNQ charges 0.13% per year while VO charges 0.03%. On a $10,000 position that is $13 vs $3 annually, a gap of $10 per year that compounds over a long holding period. On income, VNQ currently yields 3.60% against 1.30% for VO.
Holdings Overlap
33.5% of VNQ's money is in holdings VO also owns. 5.4% of VO's money is in holdings VNQ also owns.
The two portfolios partly overlap.
15 positions in common, counted across the 139 positions we hold weights for in VNQ and 283 in VO, against full books of 144 and 287.
What only one of them owns
Measured across the 139 and 283 positions we hold weights for.
VO holds 260 positions VNQ does not, 91.6% of the fund.
Largest: HWM 1.09%, PWR 0.96%, STX 0.92%, WDC 0.90%, VLO 0.89%
Top Shared Holdings
| Stock | Weight in VNQ | Weight in VO | Difference |
|---|---|---|---|
| SPGSimon Property Group Inc | 4.52% | 0.68% | 3.84% |
| DLRDigital Realty Trust Inc. | 3.93% | 0.64% | 3.29% |
| ORealty Income Corp. | 3.58% | 0.57% | 3.01% |
| PSAPublic Storage | 3.30% | 0.52% | 2.78% |
| VTRVentas Inc . | 2.70% | 0.44% | 2.26% |
| CBRECBRE group | 2.63% | 0.41% | 2.22% |
| IRMIron Mtn Inc New Com Npv | 2.21% | 0.33% | 1.88% |
| CCICrown Castle International Corp | 2.02% | 0.32% | 1.70% |
| EXRExtra Space Storage Inc. | 1.90% | 0.30% | 1.60% |
| VICIVici Properties Inc | 1.60% | 0.25% | 1.35% |
33.5% of VNQ is already inside VO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VNQ or VO?
VNQ has an expense ratio of 0.13% while VO charges 0.03%. VO is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, VNQ or VO?
Over the past year VNQ returned +1.98% vs +9.67% for VO, so VO leads on 1-year performance. Over the longest common window we track (22 years), VNQ annualized +3.70% vs +9.19% for VO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VNQ or VO?
VNQ has been the more volatile fund at 21.4% annualized versus 17.0% for VO. Worst drawdown: VNQ -75.8% vs VO -60.3%.
Should I hold both VNQ and VO?
VNQ and VO have a monthly-return correlation of 0.78, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VNQ and VO?
33.5% of VNQ's money is in holdings VO also owns. 5.4% of VO's is in holdings VNQ also owns. They hold 15 positions in common, counted across the 139 positions we hold weights for in VNQ and 283 in VO.
Which pays a higher dividend, VNQ or VO?
VNQ yields 3.60% while VO yields 1.30%, so VNQ currently pays the higher dividend yield.
Is VO better than VNQ?
VO has a lower expense ratio. VO led over 1Y, 3Y, 5Y and the full window. VO is less concentrated, with 9.1% of the fund in its ten largest positions against 49.8%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.