MDY vs VNQ: Correlation & Overlap
SPDR S&P MidCap 400 ETF (MDY) and Vanguard Real Estate ETF (VNQ) show a strong relationship: their 3-year correlation of weekly returns is 0.72. The two funds also share 7.0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are MDY and VNQ?
On 3 years of weekly data the MDY/VNQ correlation comes out at 0.72, strong. Little has changed lately, as the 1-year reading of 0.63 lands near the 3-year figure. The 5-year figure is 0.79, and annualized covariance runs at 197.6 %².
By 3-year correlation, VNQ places #54 of the 359 assets tracked against MDY. On 12-month performance MDY holds a 8.0-point edge, +18.3% against +10.3%. The link looks structural: the rolling one-year correlation barely moved, holding between 0.65 and 0.89.
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.
MDY vs VNQ: side by side
| MDY (SPDR S&P MidCap 400 ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +18.3% | +10.3% |
| 5-year return | +47.5% | +9.5% |
| Volatility (ann.) | 16.5% | 16.6% |
| Beta vs S&P 500 | 0.91 | 0.59 |
| Max drawdown (3Y) | -24.0% | -17.5% |
| Dividend yield | 1.02% | 3.51% |
| Expense ratio | 0.23% | 0.13% |
| Assets under management | $26.5B | $73.1B |
| Sector / category | ETF · US Small & Mid Cap | ETF · Real Estate |
On the fund side, MDY sits in the Mid-Cap Blend category at State Street Investment Management, with $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% 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 MDY and VNQ
The two portfolios are largely distinct. Weighing the shared positions, 7.0% of the two funds is identical, spread across 29 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in MDY | Weight in VNQ |
|---|---|---|
| JLL | 0.49% | 0.87% |
| WPC | 0.43% | 0.84% |
| SUI | 0.40% | 0.79% |
| OHI | 0.38% | 0.78% |
| LAMR | 0.36% | 0.72% |
| ELS | 0.34% | 0.63% |
| GLPI | 0.33% | 0.63% |
| AHR | 0.30% | 0.56% |
| AMH | 0.30% | 0.55% |
| EGP | 0.30% | 0.59% |
| CTRE | 0.26% | 0.49% |
| CUBE | 0.25% | 0.48% |
| BRX | 0.25% | 0.48% |
| ADC | 0.24% | 0.49% |
| NNN | 0.24% | 0.47% |
Largest positions held only by MDY: TWLO (0.95%), P (0.94%), ILMN (0.93%), FTI (0.83%), ATI (0.80%). 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. Top 15 common positions shown.
Year-by-year returns
| Year | MDY | VNQ |
|---|---|---|
| 2022 | -13.3% | -26.3% |
| 2023 | +16.1% | +11.9% |
| 2024 | +13.6% | +4.8% |
| 2025 | +7.2% | +3.2% |
| 2026 | +16.4% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY 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 MDY and VNQ?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.63 over the last year and 0.79 over 5 years.
Is VNQ a good diversifier for MDY?
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.
How much do MDY and VNQ overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 7.0% by weight over 29 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mdy-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/mdy-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: MDY correlations · VNQ correlations
