VNQ vs VOO
VNQ vs VOO
Vanguard Real Estate ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | VNQ | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.13% | 0.03% | |
| AUM | $38.2B | $979.0B | |
| Dividend Yield | 3.52% | 1.09% | |
| Holdings | 144 | 509 | |
| YTD Return | +13.37% | +13.80% | |
| 1Y Return | +13.85% | +23.71% | |
| 3Y Return (annualized) | +9.90% | +21.50% | |
| 5Y Return (annualized) | +2.33% | +13.44% | |
| Volatility (annualized) | 21.4% | 14.1% | |
| Max Drawdown | -75.8% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2004 | Sep 7, 2010 |
VNQ vs VOO Performance
Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VNQ returned +13.85% while VOO returned +23.71%. Year to date, VNQ is up 13.37% versus a gain of 13.80% for VOO.
Over three years, VNQ compounded at +9.90% per year against +21.50% for VOO; over five years the annualized figures are +2.33% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs +4.13%. 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 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 -75.8% for VNQ and -34.3% for VOO. 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 0.73. 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 3.52% against 1.09% for VOO.
Holdings Overlap
VNQ and VOO share 31 holdings out of 618 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VNQ | Weight in VOO | Difference |
|---|---|---|---|
| WELL | 8.41% | 0.25% | 8.16% |
| PLD | 6.70% | 0.20% | 6.50% |
| EQIX | 5.46% | 0.16% | 5.30% |
| AMT | Pro | Pro | Pro |
| SPG | Pro | Pro | Pro |
| DLR | Pro | Pro | Pro |
| O | Pro | Pro | Pro |
| PSA | Pro | Pro | Pro |
| VTR | Pro | Pro | Pro |
| CBRE | Pro | Pro | Pro |
See all 10 holdings VNQ shares with VOO Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
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. On a $10,000 investment, that is $10 per year of difference.
Which performed better, VNQ or VOO?
Over the past year VNQ returned +13.85% vs +23.71% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VNQ annualized +4.13% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, VNQ or VOO?
VNQ has been the more volatile fund at 21.4% annualized versus 14.1% for VOO. Worst drawdown: VNQ -75.8% vs VOO -34.3%.
Should I hold both VNQ and VOO?
VNQ and VOO have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VNQ and VOO?
VNQ and VOO share 31 common holdings with a 1.9% weight overlap. Combined, they hold 618 unique securities.
Which pays a higher dividend, VNQ or VOO?
VNQ yields 3.52% while VOO yields 1.09%, so VNQ currently pays the higher dividend yield.
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