VNQ vs VOT
Vanguard Real Estate ETF vs Vanguard Morningstar Mid-Cap Growth ETF
Quick Verdict
VOT has a lower expense ratio. VNQ delivered stronger 1-year returns. VNQ offers more diversification with 144 holdings.
Side-by-Side Comparison
| Metric | VNQ | VOT | Winner |
|---|---|---|---|
| Expense Ratio | 0.13% | 0.05% | |
| AUM | $39.3B | $19.1B | |
| Dividend Yield | 3.49% | 0.62% | |
| Holdings | 144 | 129 | |
| YTD Return | +13.46% | +8.96% | |
| 1Y Return | +13.14% | +8.44% | |
| 3Y Return (annualized) | +11.55% | +16.15% | |
| 5Y Return (annualized) | +2.33% | +5.39% | |
| Volatility (annualized) | 21.4% | 18.5% | |
| Max Drawdown | -75.8% | -60.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2004 | Aug 17, 2006 |
VNQ vs VOT Performance
Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US) and Vanguard Morningstar Mid-Cap Growth ETF (VOT) is a ETF from Vanguard (US). Over the past year VNQ returned +13.14% while VOT returned +8.44%. Year to date, VNQ is up 13.46% versus a gain of 8.96% for VOT.
Over three years, VNQ compounded at +11.55% per year against +16.15% for VOT; over five years the annualized figures are +2.33% and +5.39% respectively. Across the full 20-year window we track, VOT has the edge at +9.59% 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 18.5% for VOT. 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 VOT. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VNQ charges 0.13% per year while VOT charges 0.05%. On a $10,000 position that is $13 vs $5 annually, a gap of $8 per year that compounds over a long holding period. On income, VNQ currently yields 3.49% against 0.62% for VOT.
Holdings Overlap
VNQ and VOT share 6 holdings out of 259 unique holdings combined, representing a 4.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VNQ or VOT?
VNQ has an expense ratio of 0.13% while VOT charges 0.05%. VOT is the cheaper option. On a $10,000 investment, that is $8 per year of difference.
Which performed better, VNQ or VOT?
Over the past year VNQ returned +13.14% vs +8.44% for VOT, so VNQ leads on 1-year performance. Over the longest common window we track (20 years), VNQ annualized +4.13% vs +9.59% for VOT. Past performance does not guarantee future results.
Which is riskier, VNQ or VOT?
VNQ has been the more volatile fund at 21.4% annualized versus 18.5% for VOT. Worst drawdown: VNQ -75.8% vs VOT -60.3%.
Should I hold both VNQ and VOT?
VNQ and VOT have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VNQ and VOT?
VNQ and VOT share 6 common holdings with a 4.2% weight overlap. Combined, they hold 259 unique securities.
Which pays a higher dividend, VNQ or VOT?
VNQ yields 3.49% while VOT yields 0.62%, so VNQ currently pays the higher dividend yield.
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