FRT vs VNQ: Correlation
Measured on weekly returns over the past three years, Federal Realty Investment Trust (FRT) and Vanguard Real Estate ETF (VNQ) carry a correlation of 0.81, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FRT and VNQ?
Across a 3-year window, the weekly returns of FRT and VNQ correlate at 0.81, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.80 over 1 year against 0.81 over 3. Stretching to 5 years gives 0.80, with an annualized covariance of 261.9 %².
By 3-year correlation, VNQ places #7 of the 46 assets tracked against FRT. The trailing year gives FRT the advantage: +21.6% versus +10.3%, a 11.3-point spread. The link looks structural: the rolling one-year correlation barely moved, holding between 0.76 and 0.87.
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.
FRT vs VNQ: side by side
| FRT (Federal Realty Investment Trust) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +21.6% | +10.3% |
| 5-year return | +18.8% | +9.5% |
| Volatility (ann.) | 19.5% | 16.6% |
| Beta vs S&P 500 | 0.53 | 0.59 |
| Max drawdown (3Y) | -27.4% | -17.5% |
| Market cap | $10.2B | – |
| P/E (trailing) | 23.6 | – |
| Dividend yield | 3.84% | 3.51% |
| Expense ratio | – | 0.13% |
| Assets under management | – | $73.1B |
| Sector / category | Real Estate | ETF · Real Estate |
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.
Year-by-year returns
| Year | FRT | VNQ |
|---|---|---|
| 2022 | -22.7% | -26.3% |
| 2023 | +6.6% | +11.9% |
| 2024 | +12.1% | +4.8% |
| 2025 | -5.9% | +3.2% |
| 2026 | +19.7% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
Keep in mind that VNQ holds FRT at a 0.5% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are FRT and VNQ good diversifiers for each other?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between FRT and VNQ?
Using weekly returns as of 2026-08-27: 0.81 over 3 years, with 0.80 over the last year and 0.80 over 5 years.
Is VNQ a good diversifier for FRT?
Not really. At 0.81, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.81 mean?
A reading of 0.81 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/frt-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/frt-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: FRT correlations · VNQ correlations
