SAFE vs VNQ: Correlation
How closely do Safehold Inc. New (SAFE) 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 SAFE and VNQ?
Across a 3-year window, the weekly returns of SAFE and VNQ correlate at 0.72, strong. The relationship has been stable: the 1-year correlation (0.64) sits close to the 3-year figure. Stretching to 5 years gives 0.60, with an annualized covariance of 437.5 %².
VNQ is one of the assets that tracks SAFE most closely: it ranks #1 out of the 13 assets we track against SAFE. Over the last 12 months VNQ came out ahead by 10.4 percentage points (-0.1% against +10.3%). One caveat on sizing: SAFE is 2.2 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.
SAFE vs VNQ: side by side
| SAFE (Safehold Inc. New) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | -0.1% | +10.3% |
| 5-year return | -85.5% | +9.5% |
| Volatility (ann.) | 36.8% | 16.6% |
| Beta vs S&P 500 | 0.66 | 0.59 |
| Max drawdown (3Y) | -51.9% | -17.5% |
| Market cap | $1.1B | – |
| P/E (trailing) | 9.5 | – |
| Dividend yield | 4.61% | 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 | SAFE | VNQ |
|---|---|---|
| 2022 | -61.0% | -26.3% |
| 2023 | -48.4% | +11.9% |
| 2024 | -18.2% | +4.8% |
| 2025 | -22.5% | +3.2% |
| 2026 | +14.9% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SAFE 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 SAFE and VNQ?
Using weekly returns as of 2026-08-27: 0.72 over 3 years, with 0.64 over the last year and 0.60 over 5 years.
Is VNQ a good diversifier for SAFE?
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?
On the −1 to +1 scale, 0.72 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/safe-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/safe-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SAFE correlations · VNQ correlations
