INVH vs VNQ: Correlation
How closely do Invitation Homes (INVH) and Vanguard Real Estate ETF (VNQ) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are INVH and VNQ?
Across a 3-year window, the weekly returns of INVH and VNQ correlate at 0.72, strong. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. Stretching to 5 years gives 0.77, with an annualized covariance of 251.0 %².
By 3-year correlation, VNQ places #7 of the 28 assets tracked against INVH. On 12-month performance VNQ holds a 12.2-point edge, -1.9% against +10.3%. The rolling one-year correlation moved between 0.60 and 0.86 over the past three years, a moderate range.
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.
INVH vs VNQ: side by side
| INVH (Invitation Homes) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | -1.9% | +10.3% |
| 5-year return | -16.8% | +9.5% |
| Volatility (ann.) | 21.2% | 16.6% |
| Beta vs S&P 500 | 0.50 | 0.59 |
| Max drawdown (3Y) | -30.9% | -17.5% |
| Market cap | $17.4B | – |
| P/E (trailing) | 27.3 | – |
| Dividend yield | 3.98% | 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 | INVH | VNQ |
|---|---|---|
| 2022 | -33.0% | -26.3% |
| 2023 | +19.7% | +11.9% |
| 2024 | -3.1% | +4.8% |
| 2025 | -9.7% | +3.2% |
| 2026 | +7.6% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
INVH represents 0.84% of VNQ's portfolio, so part of any move in VNQ is INVH itself, and the correlation between them is partly mechanical.
Are INVH and VNQ good diversifiers for each other?
To a limited degree. At 0.72 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 INVH and VNQ?
The INVH/VNQ correlation stands at 0.72 on a 3-year window (1 year: 0.63, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is VNQ a good diversifier for INVH?
To a limited degree. At 0.72 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 0.72 mean?
A reading of 0.72 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/invh-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/invh-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: INVH correlations · VNQ correlations
