VNQ vs VXF
Vanguard Real Estate ETF vs Vanguard Extended Market ETF
Which is better, VNQ or VXF?
VXF has been ahead.
VXF has a lower expense ratio. VXF 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 | VXF |
|---|---|---|
| Expense Ratio | 0.13% | 0.05%Best |
| AUM | $39.3B | $30.5B |
| Dividend Yield | 3.49% | 1.01% |
| Holdings | 144 | 3,385 |
| YTD Return | +8.39% | +11.73%Best |
| 1Y Return | +5.49% | +13.57%Best |
| 3Y Return (annualized) | +9.36% | +18.32%Best |
| 5Y Return (annualized) | +1.23% | +5.92%Best |
| Volatility (annualized) | 21.4% | 19.0%Best |
| Max Drawdown | -75.8% | -59.4%Best |
| $10,000 over 5 years | $10,630 | $13,332Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Mid Cap Blend |
| Inception | Sep 23, 2004 | Dec 27, 2001 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 29, 2004 to Sep 15, 2026 (22 years).
VNQ vs VXF 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 VXF Performance
Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US) and Vanguard Extended Market ETF (VXF) is an ETF from Vanguard (US). Over the past year VNQ returned +5.49% while VXF returned +13.57%. Year to date, VNQ is up 8.39% versus a gain of 11.73% for VXF.
Over three years, VNQ compounded at +9.36% per year against +18.32% for VXF; over five years the annualized figures are +1.23% and +5.92% respectively. Across the full 22-year window we track, VXF has the edge at +9.19% annualized vs +3.90%.
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 19.0% for VXF. 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 -59.4% for VXF. 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 VXF 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 1.01% for VXF.
Holdings Overlap
At least 26.0% of VNQ's money is in holdings VXF also owns.
Stated as a floor: for VXF, our book for it covers 94.3% 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 VXF share little of their money.
105 positions in common, counted across the 139 positions we hold weights for in VNQ and 3,296 in VXF, against full books of 144 and 3,385.
What only one of them owns
Measured across the 139 and 3,296 positions we hold weights for.
VXF holds 1,651 positions VNQ does not, 85.9% of the fund.
Largest: ARKX 1.14%, SNOW 1.00%, BE 0.90%, NET 0.89%, ALAB 0.73%
Top Shared Holdings
| Stock | Weight in VNQ | Weight in VXF | Difference |
|---|---|---|---|
| JLLJones Lang Lasalle Inc. | 1.01% | 0.16% | 0.85% |
| WPCW.P Carey Inc. | 0.98% | 0.18% | 0.80% |
| SUISun Communities Inc. | 0.92% | 0.16% | 0.76% |
| OHIOmega Healthcare Investors Reit In | 0.91% | 0.16% | 0.75% |
| LAMRLamar Advertising Co | 0.83% | 0.15% | 0.68% |
| ELSEquity Lifestyle Properties, Inc. | 0.73% | 0.14% | 0.59% |
| GLPIGaming And Leisure Properties Inc | 0.73% | 0.14% | 0.59% |
| EGPEastgroup Properties Inc. Real Estate Investment Trust | 0.68% | 0.12% | 0.56% |
| AHRAmerican Healthcare REIT Inc | 0.65% | 0.11% | 0.54% |
| AMHAmerican Homes 4 Rent Reit | 0.64% | 0.12% | 0.52% |
26.0% of VNQ is already inside VXF.
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 VXF?
VNQ has an expense ratio of 0.13% while VXF charges 0.05%. VXF is the cheaper option, by $8 a year on a $10,000 investment.
Which performed better, VNQ or VXF?
Over the past year VNQ returned +5.49% vs +13.57% for VXF, so VXF leads on 1-year performance. Over the longest common window we track (22 years), VNQ annualized +3.90% vs +9.19% for VXF. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VNQ or VXF?
VNQ has been the more volatile fund at 21.4% annualized versus 19.0% for VXF. Worst drawdown: VNQ -75.8% vs VXF -59.4%.
Should I hold both VNQ and VXF?
VNQ and VXF 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 VXF?
At least 26.0% of VNQ's money is in holdings VXF also owns. Our book for VXF is partial, so the real figure is this or higher. They hold 105 positions in common, counted across the 139 positions we hold weights for in VNQ and 3,296 in VXF.
Which pays a higher dividend, VNQ or VXF?
VNQ yields 3.49% while VXF yields 1.01%, so VNQ currently pays the higher dividend yield.
Is VXF better than VNQ?
VXF has a lower expense ratio. VXF 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.