ICLN vs VNQ: Correlation & Overlap
iShares Global Clean Energy ETF (ICLN) and Vanguard Real Estate ETF (VNQ) show a moderate relationship: their 3-year correlation of weekly returns is 0.39. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ICLN and VNQ?
Across a 3-year window, the weekly returns of ICLN and VNQ correlate at 0.39, moderate. The past 12 months show a weaker link (-0.02) than the 3-year average (0.39). Stretching to 5 years gives 0.53, with an annualized covariance of 153.7 %².
Among the 78 assets we track against ICLN, VNQ ranks #56 by 3-year correlation. The last year tells two different stories: ICLN led by 15.3 percentage points, +25.6% for ICLN against +10.3% for VNQ. The relationship is regime-dependent: the rolling one-year correlation swung between 0.00 and 0.83 over the past three years, so this pair behaves very differently depending on the market environment.
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.
ICLN vs VNQ: side by side
| ICLN (iShares Global Clean Energy ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +25.6% | +10.3% |
| 5-year return | -18.4% | +9.5% |
| Volatility (ann.) | 24.0% | 16.6% |
| Beta vs S&P 500 | 0.78 | 0.59 |
| Max drawdown (3Y) | -34.6% | -17.5% |
| Dividend yield | 1.05% | 3.51% |
| Expense ratio | 0.39% | 0.13% |
| Assets under management | $2.3B | $73.1B |
| Sector / category | ETF · Thematic | ETF · Real Estate |
On the fund side, ICLN sits in the Miscellaneous Sector category at iShares, with $2.3B under management, 102 holdings, a 0.39% expense ratio, a 1.05% 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 ICLN and VNQ
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by ICLN: FSLR (7.87%), 600900 (7.64%), BE (7.36%), NXT (6.81%), ENPH (4.70%). Only by VNQ: VRTPX (14.54%), WELL (8.54%), PLD (7.04%), EQIX (5.25%), AMT (4.22%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | ICLN | VNQ |
|---|---|---|
| 2022 | -5.4% | -26.3% |
| 2023 | -20.4% | +11.9% |
| 2024 | -25.7% | +4.8% |
| 2025 | +47.0% | +3.2% |
| 2026 | +8.8% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ICLN and VNQ good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.39 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between ICLN and VNQ?
The ICLN/VNQ correlation stands at 0.39 on a 3-year window (1 year: -0.02, 5 years: 0.53), computed from weekly returns as of 2026-08-27.
Is VNQ a good diversifier for ICLN?
Yes, to a useful degree: a correlation of 0.39 leaves real independence between the two, which historically damped combined volatility.
How much do ICLN and VNQ overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/icln-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/icln-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ICLN correlations · VNQ correlations
