VNQ vs VWIUX
Vanguard Real Estate ETF vs Vanguard Intermediate Term Tax-Exempt Fund admiral class
Quick Verdict
VWIUX has a lower expense ratio. VNQ delivered stronger 1-year returns. VWIUX offers more diversification with 15,066 holdings.
Side-by-Side Comparison
| Metric | VNQ | VWIUX | Winner |
|---|---|---|---|
| Expense Ratio | 0.13% | 0.09% | |
| AUM | $39.3B | $86.4B | |
| Dividend Yield | 3.49% | 3.13% | |
| Holdings | 144 | 15,066 | |
| YTD Return | +13.46% | -1.81% | |
| 1Y Return | +13.14% | +0.89% | |
| 3Y Return (annualized) | +11.55% | +0.67% | |
| 5Y Return (annualized) | +2.33% | -1.82% | |
| Volatility (annualized) | 21.4% | 5.4% | |
| Max Drawdown | -75.8% | -16.1% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Tax Preferred | |
| Inception | Sep 23, 2004 | Feb 12, 2001 |
VNQ vs VWIUX Performance
Vanguard Real Estate ETF (VNQ) is a ETF from Vanguard (US) and Vanguard Intermediate Term Tax-Exempt Fund admiral class (VWIUX) is a mutual fund from Vanguard (US). Over the past year VNQ returned +13.14% while VWIUX returned +0.89%. Year to date, VNQ is up 13.46% versus a loss of 1.81% for VWIUX.
Over three years, VNQ compounded at +11.55% per year against +0.67% for VWIUX; over five years the annualized figures are +2.33% and -1.82% respectively. Across the full 5-year window we track, VNQ has the edge at +4.13% annualized vs -1.82%. 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 5.4% for VWIUX. 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 -16.1% for VWIUX. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VNQ charges 0.13% per year while VWIUX charges 0.09%. On a $10,000 position that is $13 vs $9 annually, a gap of $4 per year that compounds over a long holding period. On income, VNQ currently yields 3.49% against 3.13% for VWIUX.
Holdings Overlap
VNQ and VWIUX share 0 holdings out of 1907 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VNQ or VWIUX?
VNQ has an expense ratio of 0.13% while VWIUX charges 0.09%. VWIUX is the cheaper option. On a $10,000 investment, that is $4 per year of difference.
Which performed better, VNQ or VWIUX?
Over the past year VNQ returned +13.14% vs +0.89% for VWIUX, so VNQ leads on 1-year performance. Over the longest common window we track (5 years), VNQ annualized +4.13% vs -1.82% for VWIUX. Past performance does not guarantee future results.
Which is riskier, VNQ or VWIUX?
VNQ has been the more volatile fund at 21.4% annualized versus 5.4% for VWIUX. Worst drawdown: VNQ -75.8% vs VWIUX -16.1%.
Should I hold both VNQ and VWIUX?
VNQ and VWIUX have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VNQ and VWIUX?
VNQ and VWIUX share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1907 unique securities.
Which pays a higher dividend, VNQ or VWIUX?
VNQ yields 3.49% while VWIUX yields 3.13%, so VNQ currently pays the higher dividend yield.
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