VNQ: Vanguard Real Estate ETF returns, drawdowns and risk
Funds on listed real estate companies (REITs), in the US and abroad.
Data updated October 2026
VNQ · US exchange · USDCategory: Real estate (REIT) ETFsData from June 2020
From June 2020 to October 2026 VNQ returned 6.3% a year on average with dividends reinvested, in US dollars: $10,000 invested at the start grew to $14,802.
Its deepest fall was 34.5%, from December 2021 to October 2023, and it took about 53 months to get back to the previous high. Annual volatility was 18.9%; at the last close it was 7.8% below its high.
Against SPY (SPDR S&P 500 ETF Trust), over the 76 months both have data, the correlation of monthly returns was 0.80: they usually moved together. Beta was 0.95. In months when SPY rose, VNQ moved 80% as much on average; in months when SPY fell, 119% as much.
Key figures
- Annual return (CAGR)
- +6.3%
- 1-year return
- +4.0%
- 5 years, a year
- +0.7%
- 10 years, a year
- —
- Annual volatility
- 18.9%
- Maximum drawdown
- −34.5%
- Sharpe ratio
- 0.27
- Worst year
- 2022: −26.2%
Trailing returns
| Period | VNQ | SPY |
|---|---|---|
| 1 year | +4.0% | +16.6% |
| 3 years, a year | +12.8% | +23.1% |
| 5 years, a year | +0.7% | +12.7% |
To the last close of October 2026. Periods longer than a year are annualised.
Growth of $10,000: VNQ vs SPY
Month-end values from July 2020, the first month both funds have data.
VNQ drawdowns
Percentage below the previous high, weekly.
Returns by calendar year
| Year | VNQ | SPY |
|---|---|---|
| 2026(partial) | +7.3% | +13.3% |
| 2025 | +3.2% | +17.7% |
| 2024 | +4.8% | +24.9% |
| 2023 | +11.8% | +26.2% |
| 2022 | −26.2% | −18.2% |
| 2021 | +40.5% | +28.7% |
| 2020(partial) | +10.0% | — |
VNQ compared
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.
Sharpe ratio uses the return of short-term government bills in the same currency as the risk-free rate. The growth chart uses month-end values; drawdowns and volatility use daily closes.
Questions
What is the average annual return of VNQ?
From June 2020 to October 2026 VNQ returned 6.3% a year on average (CAGR) with dividends reinvested, in USD. Over the last 5 years: +0.7% a year. Over the last 12 months: +4.0%.
What was the worst drawdown of VNQ?
34.5%, from December 2021 to October 2023; it took about 53 months from the previous high to get back to it.
How volatile is VNQ?
Annual volatility was 18.9% over the period. Its worst month was −12.9% and 61% of months were positive. Worst calendar year: 2022 (−26.2%).
How closely does VNQ follow SPY?
Over 76 months the correlation of monthly returns was 0.80, so they usually moved together, with a beta of 0.95.
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Other Real estate (REIT) ETFs
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.