VNQ vs VTI
Vanguard Real Estate ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, VNQ or VTI?
Mid Cap Blend against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. VTI is less concentrated, with 33.3% 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 | VTI |
|---|---|---|
| Expense Ratio | 0.13% | 0.03%Best |
| AUM | $38.1B | $690.1B |
| Dividend Yield | 3.60% | 1.03% |
| Holdings | 144 | 3,524 |
| YTD Return | +6.14% | +14.43%Best |
| 1Y Return | +6.91% | +18.05%Best |
| 3Y Return (annualized) | +10.84% | +22.93%Best |
| 5Y Return (annualized) | +1.23% | +12.74%Best |
| Volatility (annualized) | 21.4% | 15.2%Best |
| Max Drawdown | -75.8% | -56.6%Best |
| $10,000 over 5 years | $10,630 | $18,213Best |
| Top 10 Weight | 49.8% | 33.3%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Blend |
| Inception | Sep 23, 2004 | May 24, 2001 |
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2004 to Oct 12, 2026 (22 years).
VNQ vs VTI 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 VTI Performance
Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year VNQ returned +6.91% while VTI returned +18.05%. Year to date, VNQ is up 6.14% versus a gain of 14.43% for VTI.
Over three years, VNQ compounded at +10.84% per year against +22.93% for VTI; over five years the annualized figures are +1.23% and +12.74% respectively. Across the full 22-year window we track, VTI has the edge at +9.69% annualized vs +3.79%.
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 15.2% for VTI. 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 -56.6% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VNQ charges 0.13% per year while VTI 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 1.03% for VTI.
Holdings Overlap
99.4% of VNQ's money is in holdings VTI also owns. 2.3% of VTI's money is in holdings VNQ also owns.
Most of VNQ is already inside VTI. Owning both mostly buys the same companies twice.
139 positions in common, counted across the 139 positions we hold weights for in VNQ and 3,463 in VTI, against full books of 144 and 3,524.
What only one of them owns
Measured across the 139 and 3,463 positions we hold weights for.
VTI holds 1,076 positions VNQ does not, 95.2% of the fund.
Largest: NVDA 6.40%, AAPL 6.29%, MSFT 4.79%, AMZN 3.65%, GOOGL 2.90%
Top Shared Holdings
| Stock | Weight in VNQ | Weight in VTI | Difference |
|---|---|---|---|
| WELLWelltower, Inc. | 9.92% | 0.23% | 9.69% |
| PLDPrologis Inc | 8.17% | 0.19% | 7.98% |
| EQIXEquinix Inc. Real Estate Investment Trust | 6.10% | 0.14% | 5.96% |
| AMTAmerican Tower Corporation | 4.90% | 0.11% | 4.79% |
| SPGSimon Property Group Inc | 4.52% | 0.10% | 4.42% |
| DLRDigital Realty Trust Inc. | 3.93% | 0.09% | 3.84% |
| ORealty Income Corp. | 3.58% | 0.08% | 3.50% |
| PSAPublic Storage | 3.30% | 0.08% | 3.22% |
| VTRVentas Inc . | 2.70% | 0.06% | 2.64% |
| CBRECBRE group | 2.63% | 0.06% | 2.57% |
99.4% of VNQ is already inside VTI.
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 VTI?
VNQ has an expense ratio of 0.13% while VTI charges 0.03%. VTI is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, VNQ or VTI?
Over the past year VNQ returned +6.91% vs +18.05% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (22 years), VNQ annualized +3.79% vs +9.69% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VNQ or VTI?
VNQ has been the more volatile fund at 21.4% annualized versus 15.2% for VTI. Worst drawdown: VNQ -75.8% vs VTI -56.6%.
Should I hold both VNQ and VTI?
VNQ and VTI have a monthly-return correlation of 0.75, 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 VTI?
99.4% of VNQ's money is in holdings VTI also owns. 2.3% of VTI's is in holdings VNQ also owns. They hold 139 positions in common, counted across the 139 positions we hold weights for in VNQ and 3,463 in VTI.
Which pays a higher dividend, VNQ or VTI?
VNQ yields 3.60% while VTI yields 1.03%, so VNQ currently pays the higher dividend yield.
Is VTI better than VNQ?
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. VTI is less concentrated, with 33.3% 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.