ETF Versus

VNQ vs VOO

Vanguard Real Estate Index Fund ETF Shares vs Vanguard S&P 500 ETF

Last updated: 2026-04-02

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
VOO Vanguard

Vanguard S&P 500 ETF (VOO) is an exchange-traded fund issued by Vanguard that provides exposure to large-cap U.S. equities across growth and value styles. It charges a very low expense ratio of 0.03%. The fund offers a moderate dividend yield of 1.18%. Launched in 2010, the fund has a 16-year track record.

AUM: $792.0B ER: 0.03% Yield: 1.18% Since: Sep 7, 2010

Quick Verdict

VOO is significantly cheaper at 0.03% vs 0.13% expense ratio, saving you approximately $199 per $10,000 invested over 10 years. Over the past year, VOO has significantly outperformed with a 16.8% return vs -1.7%. Income investors may prefer VNQ for its higher yield (3.9% vs 1.2%).

Key Metrics

Metric VNQ VOO
Expense Ratio 0.13% 0.03%
Dividend Yield 3.9% 1.2%
Fund Family Vanguard Vanguard
Category US Real Estate US Large Cap Blend

Performance Chart

Indexed to 100 at start (5-year comparison)

75 95 115 135 155 175 2021-04 2022-06 2023-09 2024-12 2026-04
VNQ -5.2%
VOO +61.3%

Performance Comparison

Period VNQ VOO Difference
1 Month -7.20% -4.59% -2.61%
3 Months +0.56% -4.14% +4.70%
6 Months -2.63% -2.11% -0.52%
YTD +0.56% -4.14% +4.70%
1 Year -1.72% +16.77% -18.49%
3 Years +8.06% +59.52% -51.46%
5 Years -5.19% +61.27% -66.46%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period VNQ Fees VOO Fees You Save
$10.000 10 years $258 $60 $199
$10.000 20 years $1.109 $258 $851
$10.000 30 years $3.571 $835 $2.736
$50.000 10 years $1.292 $299 $993
$50.000 30 years $17.855 $4.176 $13.679
$100.000 30 years $35.710 $8.352 $27.358

Risk Metrics

Based on 5 years of daily returns

Metric VNQ VOO
Annualized Volatility 18.9% 16.8%
Max Drawdown -38.8% -25.4%
Sharpe Ratio -0.20 0.39

Dividend Comparison

Metric VNQ VOO
Annual Dividend (per share) $3.49 $7.13
Dividend Yield 3.92% 1.18%
Distribution Frequency Quarterly Quarterly

Top Holdings

0 of top 9 holdings overlap (0% overlap in top holdings)

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%

VOO Top Holdings

NameWeight
NVIDIA CorporationNVDA7.31%
Apple Inc.AAPL6.63%
Microsoft CorporationMSFT4.96%
Amazon.com, Inc.AMZN3.47%
Broadcom Inc.AVGO2.56%
Alphabet Inc.GOOG2.46%
Meta Platforms, Inc.META2.40%
Tesla, Inc.TSLA1.92%
Berkshire Hathaway Inc.BRK.B1.57%

Which One Should You Choose?

Choose VOO if...

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

Choose VOO 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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