VNQ vs VUG
Vanguard Real Estate ETF vs Vanguard Morningstar Growth ETF
Which is better, VNQ or VUG?
Mid Cap Blend against Large Cap Growth.
VUG has a lower expense ratio. VUG led over 1Y, 3Y, 5Y and the full window. VNQ is less concentrated, with 49.8% of the fund in its ten largest positions against 63.6%.
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 | VUG |
|---|---|---|
| Expense Ratio | 0.13% | 0.03%Best |
| AUM | $38.1B | $227.0B |
| Dividend Yield | 3.60% | 0.38% |
| Holdings | 144 | 150 |
| YTD Return | +3.98% | +12.87%Best |
| 1Y Return | +1.98% | +13.67%Best |
| 3Y Return (annualized) | +11.41% | +27.28%Best |
| 5Y Return (annualized) | +1.04% | +14.41%Best |
| Volatility (annualized) | 21.4% | 16.6%Best |
| Max Drawdown | -75.8% | -51.4%Best |
| $10,000 over 5 years | $10,531 | $19,603Best |
| Top 10 Weight | 49.8%Best | 63.6% |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Growth |
| 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 VUG 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 VUG Performance
Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US) and Vanguard Morningstar Growth ETF (VUG) is an ETF from Vanguard (US). Over the past year VNQ returned +1.98% while VUG returned +13.67%. Year to date, VNQ is up 3.98% versus a gain of 12.87% for VUG.
Over three years, VNQ compounded at +11.41% per year against +27.28% for VUG; over five years the annualized figures are +1.04% and +14.41% respectively. Across the full 22-year window we track, VUG has the edge at +11.94% 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 16.6% for VUG. 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 -51.4% for VUG. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.66. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VNQ charges 0.13% per year while VUG 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 0.38% for VUG.
Holdings Overlap
21.5% of VNQ's money is in holdings VUG also owns. 1.0% of VUG's money is in holdings VNQ also owns.
VNQ and VUG share little of their money.
5 positions in common, counted across the 139 positions we hold weights for in VNQ and 147 in VUG, against full books of 144 and 150.
What only one of them owns
Measured across the 139 and 147 positions we hold weights for.
VUG holds 141 positions VNQ does not, 98.8% of the fund.
Largest: NVDA 12.81%, AAPL 12.59%, MSFT 9.59%, GOOGL 5.80%, AMZN 5.15%
Top Shared Holdings
21.5% of VNQ is already inside VUG.
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Frequently Asked Questions
Which is cheaper, VNQ or VUG?
VNQ has an expense ratio of 0.13% while VUG charges 0.03%. VUG is the cheaper option, by $10 a year on a $10,000 investment.
Which performed better, VNQ or VUG?
Over the past year VNQ returned +1.98% vs +13.67% for VUG, so VUG leads on 1-year performance. Over the longest common window we track (22 years), VNQ annualized +3.70% vs +11.94% for VUG. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VNQ or VUG?
VNQ has been the more volatile fund at 21.4% annualized versus 16.6% for VUG. Worst drawdown: VNQ -75.8% vs VUG -51.4%.
Should I hold both VNQ and VUG?
VNQ and VUG have a monthly-return correlation of 0.66, 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 VUG?
21.5% of VNQ's money is in holdings VUG also owns. 1.0% of VUG's is in holdings VNQ also owns. They hold 5 positions in common, counted across the 139 positions we hold weights for in VNQ and 147 in VUG.
Which pays a higher dividend, VNQ or VUG?
VNQ yields 3.60% while VUG yields 0.38%, so VNQ currently pays the higher dividend yield.
Is VUG better than VNQ?
VUG has a lower expense ratio. VUG led over 1Y, 3Y, 5Y and the full window. VNQ is less concentrated, with 49.8% of the fund in its ten largest positions against 63.6%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.