SPY vs VNQ: returns, risk and drawdowns compared
SPDR S&P 500 ETF Trust against Vanguard Real Estate ETF, over the same 6 years (July 2020 to October 2026) with dividends reinvested.
Data updated October 2026
From July 2020 to October 2026, SPY returned 17.0% a year and VNQ 6.5% a year on average, so SPY came out ahead by 10.5% a year. VNQ was the more volatile of the two (18.3% against 15.4% a year), and the deepest falls from a month-end high were 23.9% for SPY and 32.7% for VNQ.
The correlation of monthly returns was 0.80: they usually moved together. Over 41 rolling 3-year periods, SPY did better in 100% and VNQ in 0%.
Side by side
| SPY | VNQ | |
|---|---|---|
| Annual return (CAGR) | +17.0% | +6.5% |
| Total return | +171% | +49% |
| Annual volatility | 15.4% | 18.3% |
| Maximum drawdown (month-end) | −23.9% | −32.7% |
| Worst month | −9.2% | −12.9% |
| Best month | +10.9% | +12.1% |
| Positive months | 66% | 61% |
| Best year | 2021: +28.7% | 2021: +40.5% |
| Worst year | 2022: −18.2% | 2022: −26.2% |
| 1-year return | +16.6% | +4.0% |
| 5 years, a year | +12.7% | +0.7% |
| 10 years, a year | +15.4% | — |
| Trading currency | USD | USD |
First nine rows: the same 76 months for both funds. Trailing returns: to each fund’s last close.
Growth of 10,000: SPY vs VNQ
Returns by calendar year
| Year | SPY | VNQ |
|---|---|---|
| 2025 | +17.7% | +3.2% |
| 2024 | +24.9% | +4.8% |
| 2023 | +26.2% | +11.8% |
| 2022 | −18.2% | −26.2% |
| 2021 | +28.7% | +40.5% |
How the figures are calculated
Total return in the fund’s trading currency, from end-of-day prices with dividends reinvested on the ex-date. The fund’s own ongoing charges are already reflected in its price; trading costs, taxes and currency conversion are not included. Past returns do not predict future returns.
The comparison uses only the months in which both funds have prices, so the figures cover the same period even when one fund is older.
Questions
Which has returned more, SPY or VNQ?
From July 2020 to October 2026, SPY returned +17.0% a year and VNQ +6.5% a year, with dividends reinvested. Over rolling 3-year periods SPY did better in 100% of cases. Past returns do not predict future returns.
Which is riskier, SPY or VNQ?
Over the same months annual volatility was 15.4% for SPY and 18.3% for VNQ; the deepest fall from a month-end high was 23.9% and 32.7%, and the worst single month −9.2% and −12.9%.
How correlated are SPY and VNQ?
The correlation of their monthly returns was 0.80: they usually moved together. Combining them has historically given some diversification.
More comparisons
Source: MarketStack end-of-day prices, total return with dividends reinvested. Figures are historical and descriptive; they are not forecasts and not investment advice. MEDGE Capital does not recommend buying or selling any instrument. Risk disclaimer.