ACWI vs VNQ: Correlation & Overlap
How closely do iShares MSCI ACWI ETF (ACWI) and Vanguard Real Estate ETF (VNQ) trade together? Their weekly returns over three years give a correlation of 0.56, which is moderate. The two funds also share 1.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and VNQ?
On 3 years of weekly data the ACWI/VNQ correlation comes out at 0.56, moderate. The link has loosened recently: the 1-year correlation (0.37) runs below the 3-year figure (0.56). The 5-year figure is 0.70, and annualized covariance runs at 128.1 %².
By 3-year correlation, VNQ places #80 of the 119 assets tracked against ACWI. Over the last 12 months ACWI came out ahead by 12.4 percentage points (+22.7% against +10.3%). This link changes with the market regime, having swung between 0.37 and 0.88 on a rolling one-year basis.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ACWI vs VNQ: side by side
| ACWI (iShares MSCI ACWI ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +22.7% | +10.3% |
| 5-year return | +69.0% | +9.5% |
| Volatility (ann.) | 13.8% | 16.6% |
| Beta vs S&P 500 | 0.92 | 0.59 |
| Max drawdown (3Y) | -16.5% | -17.5% |
| Dividend yield | 1.44% | 3.51% |
| Expense ratio | 0.32% | 0.13% |
| Assets under management | $32.5B | $73.1B |
| Sector / category | ETF · Global | ETF · Real Estate |
On the fund side, ACWI sits in the Global Large-Stock Blend category at iShares, with $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Portfolio overlap between ACWI and VNQ
The two portfolios are largely distinct: 1.1% of the funds' weight sits in the same underlying holdings (26 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in ACWI | Weight in VNQ |
|---|---|---|
| WELL | 0.16% | 8.54% |
| PLD | 0.13% | 7.04% |
| EQIX | 0.10% | 5.25% |
| AMT | 0.08% | 4.22% |
| SPG | 0.07% | 3.89% |
| DLR | 0.06% | 3.38% |
| O | 0.05% | 3.08% |
| PSA | 0.05% | 2.84% |
| CBRE | 0.04% | 2.26% |
| VTR | 0.04% | 2.32% |
| VICI | 0.03% | 1.38% |
| IRM | 0.03% | 1.90% |
| EXR | 0.03% | 1.63% |
| CCI | 0.03% | 1.74% |
| INVH | 0.02% | 0.84% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by VNQ: VRTPX (14.54%), AVB (1.35%), EQR (1.17%), HST (0.90%), JLL (0.87%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | ACWI | VNQ |
|---|---|---|
| 2022 | -18.4% | -26.3% |
| 2023 | +22.3% | +11.9% |
| 2024 | +17.4% | +4.8% |
| 2025 | +22.4% | +3.2% |
| 2026 | +14.9% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and VNQ good diversifiers for each other?
To a limited degree. At 0.56 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between ACWI and VNQ?
As of 2026-08-27, the correlation of weekly returns between ACWI and VNQ is 0.56 over 3 years, 0.37 over 1 year and 0.70 over 5 years.
Is VNQ a good diversifier for ACWI?
To a limited degree. At 0.56 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do ACWI and VNQ overlap?
The two funds share 26 holdings amounting to 1.1% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/acwi-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ACWI correlations · VNQ correlations
