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VIG vs VNQ

Vanguard Dividend Appreciation Index Fund ETF Shares vs Vanguard Real Estate Index Fund ETF Shares

Last updated: 2026-04-02

VIG Vanguard

Vanguard Dividend Appreciation Index Fund ETF Shares (VIG) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. dividend-paying stocks selected for yield or dividend growth. It charges a very low expense ratio of 0.04%. The fund offers a moderate dividend yield of 1.60%. Launched in 2006, the fund has a 20-year track record.

AUM: $97.2B ER: 0.04% Yield: 1.60% Since: Apr 21, 2006
VNQ Vanguard

Vanguard Real Estate Index Fund ETF Shares (VNQ) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges a low expense ratio of 0.13%. The fund offers an attractive dividend yield of 3.92%. Launched in 2004, the fund has a 22-year track record.

AUM: $33.6B ER: 0.13% Yield: 3.92% Since: Sep 23, 2004

Quick Verdict

VIG has a slightly lower expense ratio (0.04% vs 0.13%), saving about $179 per $10,000 over 10 years. Over the past year, VIG has significantly outperformed with a 11.4% return vs -1.7%. Income investors may prefer VNQ for its higher yield (3.9% vs 1.6%).

Key Metrics

Metric VIG VNQ
Expense Ratio 0.04% 0.13%
Dividend Yield 1.6% 3.9%
Fund Family Vanguard Vanguard
Category US Dividend US Real Estate

Performance Chart

Indexed to 100 at start (5-year comparison)

75 91 107 123 139 155 2021-04 2022-06 2023-09 2024-12 2026-04
VIG +43.7%
VNQ -5.2%

Performance Comparison

Period VIG VNQ Difference
1 Month -5.05% -7.20% +2.15%
3 Months -2.23% +0.56% -2.79%
6 Months -0.97% -2.63% +1.66%
YTD -2.23% +0.56% -2.79%
1 Year +11.38% -1.72% +13.10%
3 Years +39.10% +8.06% +31.04%
5 Years +43.71% -5.19% +48.90%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VIG Fees VNQ Fees You Save
$10.000 10 years $80 $258 $179
$10.000 20 years $344 $1.109 $765
$10.000 30 years $1.112 $3.571 $2.459
$50.000 10 years $399 $1.292 $893
$50.000 30 years $5.560 $17.855 $12.295
$100.000 30 years $11.121 $35.710 $24.589

Risk Metrics

Based on 5 years of daily returns

Metric VIG VNQ
Annualized Volatility 14.3% 18.9%
Max Drawdown -21.5% -38.8%
Sharpe Ratio 0.27 -0.20

Dividend Comparison

Metric VIG VNQ
Annual Dividend (per share) $3.45 $3.49
Dividend Yield 1.60% 3.92%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 10 holdings overlap (0% overlap in top holdings)

VIG Top Holdings

NameWeight
Broadcom Inc.AVGO5.92%
Apple Inc.AAPL3.89%
Eli Lilly and CompanyLLY3.70%
Microsoft CorporationMSFT3.45%
JPMorgan Chase & Co.JPM3.42%
Exxon Mobil CorporationXOM2.87%
Johnson & JohnsonJNJ2.65%
Walmart Inc.WMT2.48%
Visa Inc.V2.23%
Costco Wholesale CorporationCOST1.98%

VNQ Top Holdings

NameWeight
Vanguard Real Estate II Index Fund!mutf/VRTPX14.38%
Welltower Inc.WELL7.52%
Prologis, Inc.PLD7.08%
Equinix, Inc.EQIX5.11%
American Tower CorporationAMT4.80%
Simon Property Group, Inc.SPG3.56%
Realty Income CorporationO3.27%
Digital Realty Trust, Inc.DLR3.25%
Public StoragePSA2.59%
CBRE Group, Inc.CBRE2.35%

Which One Should You Choose?

Choose VIG if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose VIG if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose VNQ if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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