PLD vs VNQ: Correlation
Measured on weekly returns over the past three years, Prologis (PLD) and Vanguard Real Estate ETF (VNQ) carry a correlation of 0.84, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are PLD and VNQ?
Across a 3-year window, the weekly returns of PLD and VNQ correlate at 0.84, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.77 over 1 year against 0.84 over 3. Stretching to 5 years gives 0.86, with an annualized covariance of 361.6 %².
In PLD's tracked universe of 40 assets, VNQ sits right near the top at #3. Correlation aside, the last 12 months split them widely, with PLD ahead by 19.7 points (+30.0% versus +10.3%). The link looks structural: the rolling one-year correlation barely moved, holding between 0.78 and 0.91. One caveat on sizing: PLD is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
PLD vs VNQ: side by side
| PLD (Prologis) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +30.0% | +10.3% |
| 5-year return | +22.5% | +9.5% |
| Volatility (ann.) | 25.8% | 16.6% |
| Beta vs S&P 500 | 0.90 | 0.59 |
| Max drawdown (3Y) | -31.4% | -17.5% |
| Market cap | $137.9B | – |
| P/E (trailing) | 31.7 | – |
| Dividend yield | 2.92% | 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 | PLD | VNQ |
|---|---|---|
| 2022 | -31.3% | -26.3% |
| 2023 | +21.6% | +11.9% |
| 2024 | -18.1% | +4.8% |
| 2025 | +25.1% | +3.2% |
| 2026 | +12.8% | +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 PLD at a 7.04% weight, which makes a slice of this correlation mechanical rather than coincidental.
Are PLD and VNQ good diversifiers for each other?
No. With a correlation of 0.84, PLD and VNQ move nearly in lockstep, so holding both adds very little diversification.
FAQ
What is the correlation between PLD and VNQ?
As of 2026-08-27, the correlation of weekly returns between PLD and VNQ is 0.84 over 3 years, 0.77 over 1 year and 0.86 over 5 years.
Is VNQ a good diversifier for PLD?
No. With a correlation of 0.84, PLD and VNQ move nearly in lockstep, so holding both adds very little diversification.
What does a correlation of 0.84 mean?
On the −1 to +1 scale, 0.84 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/pld-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/pld-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: PLD correlations · VNQ correlations
