NNN vs VNQ: Correlation
Measured on weekly returns over the past three years, NNN REIT, Inc. (NNN) and Vanguard Real Estate ETF (VNQ) carry a correlation of 0.80, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NNN and VNQ?
Over the past 3 years, NNN and VNQ moved with a correlation of 0.80, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.84) sits close to the 3-year figure. Over 5 years the correlation is 0.81, and the annualized covariance of weekly returns is 250.3 %².
In NNN's tracked universe of 34 assets, VNQ sits right near the top at #1. Twelve-month performance is nearly a tie, at +13.1% for NNN and +10.3% for VNQ.
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.
NNN vs VNQ: side by side
| NNN (NNN REIT, Inc.) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +13.1% | +10.3% |
| 5-year return | +25.1% | +9.5% |
| Volatility (ann.) | 18.8% | 16.6% |
| Beta vs S&P 500 | 0.31 | 0.59 |
| Max drawdown (3Y) | -22.0% | -17.5% |
| Market cap | $8.6B | – |
| P/E (trailing) | 22.3 | – |
| Dividend yield | 5.26% | 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 | NNN | VNQ |
|---|---|---|
| 2022 | -0.0% | -26.3% |
| 2023 | -0.6% | +11.9% |
| 2024 | -0.1% | +4.8% |
| 2025 | +2.8% | +3.2% |
| 2026 | +19.2% | +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 NNN at a 0.47% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are NNN and VNQ good diversifiers for each other?
No. With a correlation of 0.80, NNN and VNQ move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between NNN and VNQ?
The NNN/VNQ correlation stands at 0.80 on a 3-year window (1 year: 0.84, 5 years: 0.81), computed from weekly returns as of 2026-08-27.
Is VNQ a good diversifier for NNN?
No. With a correlation of 0.80, NNN and VNQ move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.80 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/nnn-vs-vnq.json
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Related comparisons
Hubs: NNN correlations · VNQ correlations
