VNQ vs XLRE: Performance, Holdings, Fees & Risk
VNQ and XLRE are ETFs, but they can differ materially in exposure, yield, fees and risk. VNQ is Vanguard Real Estate ETF, while XLRE is State Street Real Estate Select Sector SPDR ETF. VNQ is broader by holdings count, with 145 positions versus 33 for XLRE. XLRE is more concentrated at the top, based on top-10 holdings weight. Current AlgovestIQ evidence has VNQ ahead on AIQ Score, 56 versus 54.
What is the main difference between VNQ and XLRE?
VNQ and XLRE both concentrate in Real Estate, at 99% and 100% of assets, and 72% of their weight is in the same securities.
| Metric | VNQ | XLRE |
|---|---|---|
| Fund | ||
| Expense ratio | 0.13% | 0.08% |
| Holdings | 145 | 33 |
| Top-10 concentration | 49.7% | 61.9% |
| Distribution yieldTrailing 12 months | 3.69% | 3.41% |
| Average volume | 3,567,578 | 5,715,732 |
| Performance | ||
| 1Y return | +1.9% | +1.5% |
| YTD return | +4.3% | +5% |
| 5Y annualized returnTotal return, distributions reinvested | +0.5% | +1% |
| Risk | ||
| Annualized volatility | 14.1% | 14.2% |
| Max drawdown (1Y) | -12.1% | -11.8% |
| Max drawdown (5Y)Total return, distributions reinvested | -34.5% | -34.1% |
| Beta | 0.30 | 0.26 |
| Sharpe ratio | -0.12 | -0.15 |
| Sortino ratio | -0.19 | -0.22 |
| AlgovestIQ | ||
| AIQ Score | 56/100 | 54/100 |
| AIQ Edge Score | 6/10 | 5/10 |
| Momentum | 53/100 | 54/100 |
| Risk Resilience | 80/100 | 80/100 |
AlgovestIQ AIQ Comparison
Vanguard Real Estate ETF vs State Street Real Estate Select Sector SPDR ETF
VNQ leads
VNQ leads by 2 AIQ points, primarily on Quality.
Fragile: 0 of 4 evidence groups support VNQ, and its current signal state is conflicted.
Vanguard Real Estate ETF
State Street Real Estate Select Sector SPDR ETF
The Algovestiq AIQ Score currently favors VNQ over XLRE, 56 versus 54 as of Oct 21, 2026. VNQ's advantage is driven primarily by stronger quality. VNQ also shows the weaker technical structure relative to its 50-day moving average. 0 of 4 covered evidence groups favor VNQ today, and the comparison is rated Fragile on stability: the AIQ gap is narrow at 2 points. VNQ lead: Stable — the AIQ differential has held near 2 points over 30 sessions.
Compare Vanguard Real Estate ETF and State Street Real Estate Select Sector SPDR ETF across performance, expense ratio, dividend yield, drawdown, volatility and the Algovestiq AIQ Score.
VNQ vs XLRE: which fits what
Each row is settled by a single measure. Where the gap is too small to matter it reads Similar, and no row decides the comparison as a whole.
| If you want | VNQ | XLRE | Fits |
|---|---|---|---|
| Lower costExpense ratio | 0.13% | 0.08% | XLRE |
| Broader diversificationNumber of holdings | 145 | 33 | VNQ |
| Lower concentrationWeight of the 10 largest holdings | 49.7% | 61.9% | VNQ |
| Higher incomeTrailing 12-month distribution yield | 3.69% | 3.41% | VNQ |
| Smaller drawdownsMax drawdown, 5 years | -34.5% | -34.1% | Similar |
| Lower volatilityAnnualized volatility, 1 year | 14.1% | 14.2% | Similar |
Similar means the gap is within 0.01 percentage points of expense ratio, 25% more holdings, 3 points of top-10 weight, 0.2 points of yield, 2 points of drawdown or 1 point of volatility. Past drawdowns and volatility describe the funds’ history, not their future.
Performance over time
Total return with distributions reinvested, from daily closes for both ETFs.
Total return comparison
Growth of $10,000, distributions reinvested
Split-adjusted closes; each distribution is reinvested at the close on its ex-dividend date. Taxes and trading costs are not modeled.
Compare VNQ and XLRE against another ticker
Open a multi-ticker workspace without changing this focused pair page.
AIQ Factor Divergence
Where the two separate, on the four dimensions behind the AIQ Score. Bars read outward from a shared zero: further from the centre is a wider gap.
- Quality68 vs 64VNQ +4
- Value33 vs 32Even
- Momentum53 vs 54Even
- Risk Resilience80 vs 80Even
0 of 4 evidence groups favor VNQ. VNQ’s edge is concentrated in quality.
What changed since the last close
Latest scored session 2026-10-20, compared against the prior scored session 2026-10-19.
Largest factor move: Momentum +9
No signal started or stopped since the prior session; its 5 active signals are unchanged.
Largest factor move: Momentum +9
No signal started or stopped since the prior session; its 5 active signals are unchanged.
VNQ's lead widened by 1 AIQ point in the latest session.
Deeper signal detail for each name lives on its own signals page — VNQ and XLRE both carry a full feed there.
Fund facts, side by side
Two funds tracking overlapping universes are separated by cost and risk far more than by holdings. Those lead here.
| Measure | VNQ | XLRE | Why it matters |
|---|---|---|---|
| Expense ratio | 0.13% | 0.08% | Lower is better — it compounds against you every year you hold. |
| Holdings | 145 | 33 | More holdings means broader diversification, not better returns. |
| Average volume | 3,567,578 | 5,715,732 | Liquidity — matters most if you trade size. |
| Annualized volatility | 14.1% | 14.2% | Lower is a steadier ride for the same exposure. |
| Max drawdown (1Y) | -12.1% | -11.8% | The worst peak-to-trough loss over the past year. |
| Sharpe ratio | -0.12 | -0.15 | Return per unit of risk. Higher is better. |
| Beta | 0.30 | 0.26 | Sensitivity to the broad market. Neither direction is better — it depends on the role in your portfolio. |
Where the exposure actually sits
Sector exposure for each fund, ordered by the size of the difference.
How much of the same holdings they own
VNQ and XLRE share 71.66% of their weighted exposure across 30 common holdings.
110 holdings are unique to VNQ, and 1 holding is unique to XLRE. Owning both adds little diversification — they are largely the same exposure in different wrappers.
XLRE is the more concentrated of the two: its ten largest positions are 61.86% of the fund, against 49.73% for VNQ (33 holdings vs 145). Concentration cuts both ways — it is what drives outperformance when the top names work, and what makes the drawdown deeper when they do not.
Largest shared positions
| Holding | VNQ | XLRE | Shared |
|---|---|---|---|
| WELLWELLTOWER INC | 9.92% | 11.71% | 9.92% |
| PLDPROLOGIS INC | 8.17% | 8.96% | 8.17% |
| EQIXEQUINIX INC | 6.09% | 7.1% | 6.09% |
| AMTAMERICAN TOWER CORP | 4.9% | 5.67% | 4.9% |
| SPGSIMON PROPERTY GROUP INC | 4.52% | 4.67% | 4.52% |
| DLRDIGITAL REALTY TRUST INC | 3.93% | 5.04% | 3.93% |
| OREALTY INCOME CORP | 3.58% | 4.48% | 3.58% |
| PSAPUBLIC STORAGE | 3.3% | 4.51% | 3.3% |
Shared weight is the lower of the two positions — the portion of capital both funds genuinely have in the same security.
What VNQ adds that XLRE doesn’t
| Holding | VNQ | XLRE |
|---|---|---|
| AVBAvalonBay Communities Inc | 1.57% | Not held |
| JLLJones Lang LaSalle Inc | 1.01% | Not held |
| WPCWP Carey Inc | 0.98% | Not held |
| SUISun Communities Inc | 0.92% | Not held |
| OHIOmega Healthcare Investors Inc | 0.91% | Not held |
| LAMRLamar Advertising Co | 0.83% | Not held |
What XLRE adds that VNQ doesn’t
| Holding | XLRE | VNQ |
|---|---|---|
| VMRKVIVMARK RESIDENTIAL | 5.06% | 1.36% |
Each list is a fund’s largest positions by weight that the other fund does not hold, or holds at less than half the weight.
VNQ vs XLRE: five-year payout growth
XLRE grew its split-adjusted payout faster over 2020-2025 — 3.87% a year against VNQ's 0.81%.
| Dividend metric | VNQ | XLRE |
|---|---|---|
| 5Y payout CAGR | 0.81% | 3.87% |
| 2020 annual payout | $3.335 | $1.151 |
| 2025 annual payout | $3.472 | $1.392 |
| Calendar-year declines | 2 | 2 |
| Peer rank | #127 of 138 | #108 of 138 |
Split-adjusted annual distributions, 2020–2025. Research as of Sep 19, 2026. Yield and expense ratio above are current values, not part of this window.
AIQ Agreement Matrix
0 of 4 covered evidence groups favor VNQ. A wide gap backed by one group is a weaker case than a narrow gap backed by five.
| Evidence group | Favors | Reading |
|---|---|---|
| AIQ Score | Even | 56 vs 54 |
| Fundamentals | Not covered | Not covered |
| Valuation | Even | Value 33 vs 32 |
| Technicals | Even | Price vs 50-day -2.7% vs -2.2%; vs 200-day -2.3% vs -2% |
| Risk Resilience | Even | Risk Resilience 80 vs 80 |
| Analyst expectations | Not covered | Not covered |
✓ agrees with the overall verdict · ✕ points the other way. Groups marked “not covered” lack data on one or both of VNQ and XLRE and are excluded from the count.
AIQ Decision Stability
The conclusion is sensitive to small changes. Treat the lead as provisional and watch the flip conditions below.
- The AIQ gap is narrow at 2 points. (argues the conclusion is provisional)
- Only 0 of 4 covered evidence groups agree. (argues the conclusion is provisional)
- The lead has been steady session to session. (supports the conclusion holding)
- The leader is throwing conflicting signals. (argues the conclusion is provisional)
Stability combines the score gap, how broadly the evidence agrees, how steady the lead has been across daily snapshots, the current signal state on both names, and analyst dispersion on VNQ.
How the comparison changed
120 daily snapshots · Jun 21 – Oct 20VNQ lead: Stable — the AIQ differential has held near 2 points over 30 sessions.
- Today
- VNQ +2
- 56 vs 54
- 7 sessions ago
- VNQ +2
- 54 vs 52
- 30 sessions ago
- VNQ +2
- 49 vs 47
- 90 sessions ago
- VNQ +3
- 51 vs 48
The lead has not changed hands in this window.
AIQ Signal Divergence
Only the signals that bear on the head-to-head. A conflicted name is carrying bullish and bearish rules at the same time — the technical evidence is not pointing one way.
VNQ and XLRE carry the same 5 signals, so the signals do not separate them: Bollinger Band Squeeze, Death Cross Active, ATR Contraction - Coiling, Downtrend Structure Active, MACD Bullish Crossover.
VNQ leads the comparison while carrying a conflicted signal state, which is one reason the stability rating is not higher.
Price vs model alignment
Whether the latest session's price move confirms what the model did over the same session, or contradicts it.
Price is down while the AIQ Score moved up 3 points over the same session — price and model disagree (price -0.86%, AIQ +3 points).
Price is down while the AIQ Score moved up 2 points over the same session — price and model disagree (price -0.76%, AIQ +2 points).
What would flip this result
A state, not a forecast. These are the specific, observable changes that would reverse the verdict — not a price prediction.
- 1XLRE closes the Quality gap — currently 4 points behind, the largest single contributor to VNQ's edge.
- 2XLRE's Death Cross Active resolves — a bearish trend rule currently active against it.
- 3VNQ's conflicting signal state resolves bearish — it currently carries 1 bullish and 2 bearish rules at once.
- 4A regime shift changes factor weighting — Quality and Value carry the heaviest weights in the composite, so a rotation toward either would move the result most.
The full evidence
Every number behind the verdict. The leader is called above each group so you are not left to solve it from the table.
Performance
XLRE leads 4 of 6 windows| Metric | VNQ | XLRE |
|---|---|---|
| 1 week (5 sessions) | 1.3% | 1.3% |
| 1 month (20 sessions) | -1.4% | -0.3% |
| 3 months (63 sessions) | -6.8% | -5.8% |
| 6 months (126 sessions) | -3.2% | -3.2% |
| Year to date | 4.3% | 5% |
| 1 year (252 sessions) | 1.9% | 1.5% |
Technicals
Split| Metric | VNQ | XLRE |
|---|---|---|
| RSI (14) | 62.2 | 64.4 |
| ADX (14) | 28.2 | 28.1 |
| Price vs 50-day | -2.7% | -2.2% |
| Price vs 200-day | -2.3% | -2% |
| Volatility (1M, annualized) | 16.2% | 15.6% |
Risk
Split| Metric | VNQ | XLRE |
|---|---|---|
| Beta | 0.3 | 0.26 |
| Sharpe ratio | -0.12 | -0.15 |
| Sortino ratio | -0.19 | -0.22 |
| Max drawdown | -12.1% | -11.8% |
| Current drawdown | -8.6% | -7.9% |
| Annualized volatility | 14.1% | 14.2% |
| Value at risk (95%) | -1.4% | -1.5% |
Straight answers
Short answers to the questions fund investors ask about this pair, from the figures above.
What is the difference between VNQ and XLRE?
VNQ and XLRE both concentrate in Real Estate, at 99% and 100% of assets, and 72% of their weight is in the same securities.
How much do VNQ and XLRE overlap?
VNQ and XLRE share 71.66% of their weighted exposure across 30 common holdings. 110 holdings are unique to VNQ, and 1 holding is unique to XLRE. Owning both adds little diversification — they are largely the same exposure in different wrappers.
Which ETF is more diversified, VNQ or XLRE?
VNQ holds more positions: 145 versus 33 for XLRE.
Which has the lower expense ratio?
XLRE has the lower expense ratio, 0.08% a year against 0.13% for VNQ.
Which ETF has the higher distribution yield?
VNQ, with a trailing 12-month distribution yield of 3.69% against 3.41% for XLRE.
Which ETF has been more volatile?
Their volatility over the past year is similar: 14.1% annualized for VNQ and 14.2% for XLRE.
Which ETF has had the smaller drawdown?
Their worst peak-to-trough falls over the past five years are similar: -34.5% for VNQ and -34.1% for XLRE.
Compare VNQ and XLRE with others
Continue your research
This page answers which of the two. These answer the questions on either side of it.
How this comparison is scored
The Algovestiq AIQ Score composites four factors — Quality, Value, Momentum and Risk, each carrying a fixed weight. Sentiment is reported separately as SentimentPulse and is not folded into the composite. Scores refresh every trading day, and this page regenerates from the latest snapshot rather than being written once.
The verdict names a leader, states how broadly six independent evidence groups agree, and rates how durable that conclusion is given the score gap, its recent trajectory and the current signal state on both names.
How to use side-by-side comparison →This comparison is informational and educational, not investment advice. AIQ scores update daily; re-check after earnings, guidance or macro data that materially changes either name’s factor profile.