ILPT vs VNQ: Correlation
Industrial Logistics Properties Trust (ILPT) and Vanguard Real Estate ETF (VNQ) show a moderate relationship: their 3-year correlation of weekly returns is 0.58.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ILPT and VNQ?
Across a 3-year window, the weekly returns of ILPT and VNQ correlate at 0.58, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.46 versus 0.58 over 3 years. Stretching to 5 years gives 0.50, with an annualized covariance of 565.8 %².
Few assets follow ILPT as closely as VNQ, which ranks #2 of 13 tracked partners. Their recent paths diverged sharply: over the last 12 months ILPT outperformed by 33.1 percentage points (+43.4% for ILPT against +10.3% for VNQ). Note the risk asymmetry: ILPT runs 3.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
ILPT vs VNQ: side by side
| ILPT (Industrial Logistics Properties Trust) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +43.4% | +10.3% |
| 5-year return | -65.6% | +9.5% |
| Volatility (ann.) | 59.0% | 16.6% |
| Beta vs S&P 500 | 1.10 | 0.59 |
| Max drawdown (3Y) | -51.1% | -17.5% |
| Market cap | $0.6B | – |
| P/E (trailing) | – | – |
| Dividend yield | 2.97% | 3.51% |
| Expense ratio | – | 0.13% |
| Assets under management | – | $73.1B |
| Sector / category | US Listed | 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 | ILPT | VNQ |
|---|---|---|
| 2022 | -86.5% | -26.3% |
| 2023 | +45.8% | +11.9% |
| 2024 | -21.6% | +4.8% |
| 2025 | +55.5% | +3.2% |
| 2026 | +54.5% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ILPT and VNQ good diversifiers for each other?
To a limited degree. At 0.58 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 ILPT and VNQ?
Using weekly returns as of 2026-08-27: 0.58 over 3 years, with 0.46 over the last year and 0.50 over 5 years.
Is VNQ a good diversifier for ILPT?
To a limited degree. At 0.58 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.58 mean?
A reading of 0.58 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/ilpt-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ilpt-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: ILPT correlations · VNQ correlations
