VNQ vs VOO
Vanguard Real Estate ETF vs Vanguard S&P 500 ETF
Which is better, VNQ or VOO?
Mid Cap Blend against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% 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 | VOO |
|---|---|---|
| Expense Ratio | 0.13% | 0.03%Best |
| AUM | $39.3B | $997.4B |
| Dividend Yield | 3.49% | 1.04% |
| Holdings | 144 | 509 |
| YTD Return | +8.05% | +12.25%Best |
| 1Y Return | +5.86% | +17.03%Best |
| 3Y Return (annualized) | +9.23% | +21.25%Best |
| 5Y Return (annualized) | +1.33% | +13.08%Best |
| Volatility (annualized) | 17.0% | 14.1%Best |
| Max Drawdown | -42.8% | -34.3%Best |
| $10,000 over 5 years | $10,683 | $18,490Best |
| Top 10 Weight | 49.8% | 37.6%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Blend |
| Inception | Sep 23, 2004 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 17, 2026 (16 years).
VNQ vs VOO 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 16 years both funds cover.
VNQ vs VOO Performance
Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year VNQ returned +5.86% while VOO returned +17.03%. Year to date, VNQ is up 8.05% versus a gain of 12.25% for VOO.
Over three years, VNQ compounded at +9.23% per year against +21.25% for VOO; over five years the annualized figures are +1.33% and +13.08% respectively. Across the full 16-year window we track, VOO has the edge at +13.38% annualized vs +5.08%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 17.0% compared with 14.1% for VOO. 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 -42.8% for VNQ and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VNQ charges 0.13% per year while VOO 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 3.49% against 1.04% for VOO.
Holdings Overlap
73.2% of VNQ's money is in holdings VOO also owns. 1.9% of VOO's money is in holdings VNQ also owns.
Most of VNQ is already inside VOO. Owning both mostly buys the same companies twice.
31 positions in common, counted across the 139 positions we hold weights for in VNQ and 494 in VOO, against full books of 144 and 509.
What only one of them owns
Measured across the 139 and 494 positions we hold weights for.
VOO holds 456 positions VNQ does not, 97.2% of the fund.
Largest: NVDA 7.55%, AAPL 7.05%, MSFT 5.36%, AMZN 4.13%, GOOGL 3.24%
Top Shared Holdings
| Stock | Weight in VNQ | Weight in VOO | Difference |
|---|---|---|---|
| WELLWelltower, Inc. | 9.92% | 0.26% | 9.66% |
| PLDPrologis Inc | 8.17% | 0.21% | 7.96% |
| EQIXEquinix Inc. Real Estate Investment Trust | 6.10% | 0.16% | 5.94% |
| AMTAmerican Tower Corporation | 4.90% | 0.13% | 4.77% |
| SPGSimon Property Group Inc | 4.52% | 0.12% | 4.40% |
| DLRDigital Realty Trust Inc. | 3.93% | 0.10% | 3.83% |
| ORealty Income Corp. | 3.58% | 0.09% | 3.49% |
| PSAPublic Storage | 3.30% | 0.08% | 3.22% |
| VTRVentas Inc . | 2.70% | 0.07% | 2.63% |
| CBRECbre Services Inc | 2.63% | 0.07% | 2.56% |
73.2% of VNQ is already inside VOO.
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 VOO?
VNQ has an expense ratio of 0.13% while VOO charges 0.03%. VOO is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, VNQ or VOO?
Over the past year VNQ returned +5.86% vs +17.03% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VNQ annualized +5.08% vs +13.38% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VNQ or VOO?
VNQ has been the more volatile fund at 17.0% annualized versus 14.1% for VOO. Worst drawdown: VNQ -42.8% vs VOO -34.3%.
Should I hold both VNQ and VOO?
VNQ and VOO have a monthly-return correlation of 0.73, 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 VOO?
73.2% of VNQ's money is in holdings VOO also owns. 1.9% of VOO's is in holdings VNQ also owns. They hold 31 positions in common, counted across the 139 positions we hold weights for in VNQ and 494 in VOO.
Which pays a higher dividend, VNQ or VOO?
VNQ yields 3.49% while VOO yields 1.04%, so VNQ currently pays the higher dividend yield.
Is VOO better than VNQ?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 37.6% 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.