VNQ vs VWO
Vanguard Real Estate ETF vs Vanguard FTSE Emerging Markets ETF
Which is better, VNQ or VWO?
Mid Cap Blend against Large Cap Blend.
VWO has a lower expense ratio. VWO led over 1Y, 3Y, 5Y and the full window.
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 | VWO |
|---|---|---|
| Expense Ratio | 0.13% | 0.06%Best |
| AUM | $39.3B | $122.0B |
| Dividend Yield | 3.49% | 2.29% |
| Holdings | 144 | 6,334 |
| YTD Return | +8.65%Tie | +8.65%Tie |
| 1Y Return | +5.74% | +13.61%Best |
| 3Y Return (annualized) | +9.10% | +17.22%Best |
| 5Y Return (annualized) | +1.34% | +5.94%Best |
| Volatility (annualized) | 21.5% | 20.1%Best |
| Max Drawdown | -75.8% | -68.3%Best |
| $10,000 over 5 years | $10,688 | $13,344Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Blend |
| Inception | Sep 23, 2004 | Mar 4, 2005 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Sep 14, 2026 (21.5 years).
VNQ vs VWO 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 21.5 years both funds cover.
VNQ vs VWO Performance
Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US) and Vanguard FTSE Emerging Markets ETF (VWO) is an ETF from Vanguard (US). Over the past year VNQ returned +5.74% while VWO returned +13.61%. Year to date, VNQ is up 8.65% versus a gain of 8.65% for VWO.
Over three years, VNQ compounded at +9.10% per year against +17.22% for VWO; over five years the annualized figures are +1.34% and +5.94% respectively. Across the full 22-year window we track, VWO has the edge at +4.89% annualized vs +3.64%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 21.5% compared with 20.1% for VWO. 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 -68.3% for VWO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.59. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VNQ charges 0.13% per year while VWO charges 0.06%. On a $10,000 position that is $13 vs $6 annually, a gap of $7 per year that compounds over a long holding period. On income, VNQ currently yields 3.49% against 2.29% for VWO.
Holdings Overlap
At least 1.0% of VNQ's money is in holdings VWO also owns.
Stated as a floor: for VWO, our book for it covers 89.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
VNQ and VWO share little of their money.
2 positions in common, counted across the 139 positions we hold weights for in VNQ and 4,688 in VWO, against full books of 144 and 6,334.
What only one of them owns
Measured across the 139 and 4,688 positions we hold weights for.
VWO holds 22 positions VNQ does not, 1.3% of the fund.
Largest: JD 0.34%, PTR 0.22%, SBIQ 0.14%, TVSMOTOR 0.09%, IMP 0.08%
You are not choosing between two funds in isolation.
Whichever of VNQ and VWO you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VNQ or VWO?
VNQ has an expense ratio of 0.13% while VWO charges 0.06%. VWO is the cheaper option, by $7 a year on a $10,000 investment.
Which performed better, VNQ or VWO?
Over the past year VNQ returned +5.74% vs +13.61% for VWO, so VWO leads on 1-year performance. Over the longest common window we track (22 years), VNQ annualized +3.64% vs +4.89% for VWO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VNQ or VWO?
VNQ has been the more volatile fund at 21.5% annualized versus 20.1% for VWO. Worst drawdown: VNQ -75.8% vs VWO -68.3%.
Should I hold both VNQ and VWO?
VNQ and VWO have a monthly-return correlation of 0.59, 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 VWO?
At least 1.0% of VNQ's money is in holdings VWO also owns. Our book for VWO is partial, so the real figure is this or higher. They hold 2 positions in common, counted across the 139 positions we hold weights for in VNQ and 4,688 in VWO.
Which pays a higher dividend, VNQ or VWO?
VNQ yields 3.49% while VWO yields 2.29%, so VNQ currently pays the higher dividend yield.
Is VWO better than VNQ?
VWO has a lower expense ratio. VWO led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.