SPY vs VNQ: Correlation & Overlap
SPDR S&P 500 ETF Trust (SPY) and Vanguard Real Estate ETF (VNQ) show a moderate relationship: their 3-year correlation of weekly returns is 0.51. By holdings, the two funds overlap 1.8% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SPY and VNQ?
Across a 3-year window, the weekly returns of SPY and VNQ correlate at 0.51, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.28 versus 0.51 over 3 years. Stretching to 5 years gives 0.68, with an annualized covariance of 122.5 %².
Within SPY's tracked universe of 4755 assets, VNQ comes in at #441 by 3-year correlation. The trailing year gives SPY the advantage: +20.6% versus +10.3%, a 10.3-point spread. The relationship is regime-dependent: the rolling one-year correlation swung between 0.27 and 0.88 over the past three years, so this pair behaves very differently depending on the market environment.
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.
SPY vs VNQ: side by side
| SPY (SPDR S&P 500 ETF Trust) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +20.6% | +10.3% |
| 5-year return | +82.4% | +9.5% |
| Volatility (ann.) | 14.5% | 16.6% |
| Beta vs S&P 500 | 1.00 | 0.59 |
| Max drawdown (3Y) | -18.8% | -17.5% |
| Dividend yield | 1.01% | 3.51% |
| Expense ratio | 0.09% | 0.13% |
| Assets under management | $795.3B | $73.1B |
| Sector / category | ETF · US Large Cap | ETF · Real Estate |
On the fund side, SPY sits in the Large Blend category at State Street Investment Management, with $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% 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 SPY and VNQ
The two portfolios are largely distinct, with 29 holdings in common adding up to 1.8% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in SPY | Weight in VNQ |
|---|---|---|
| WELL | 0.26% | 8.54% |
| PLD | 0.20% | 7.04% |
| EQIX | 0.16% | 5.25% |
| AMT | 0.12% | 4.22% |
| SPG | 0.11% | 3.89% |
| DLR | 0.10% | 3.38% |
| O | 0.09% | 3.08% |
| PSA | 0.08% | 2.84% |
| VTR | 0.07% | 2.32% |
| CBRE | 0.07% | 2.26% |
| IRM | 0.05% | 1.90% |
| CCI | 0.05% | 1.74% |
| EXR | 0.05% | 1.63% |
| VICI | 0.04% | 1.38% |
| SBAC | 0.03% | 1.00% |
Largest positions held only by SPY: NVDA (7.68%), AAPL (6.96%), MSFT (5.58%), AMZN (3.85%), GOOGL (3.03%). Only by VNQ: VRTPX (14.54%), AVB (1.35%), EQR (1.17%), JLL (0.87%), WPC (0.84%).
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 | SPY | VNQ |
|---|---|---|
| 2022 | -18.2% | -26.3% |
| 2023 | +26.2% | +11.9% |
| 2024 | +24.9% | +4.8% |
| 2025 | +17.7% | +3.2% |
| 2026 | +13.7% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SPY and VNQ good diversifiers for each other?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between SPY and VNQ?
As of 2026-08-27, the correlation of weekly returns between SPY and VNQ is 0.51 over 3 years, 0.28 over 1 year and 0.68 over 5 years.
Is VNQ a good diversifier for SPY?
Somewhat, no more. With 0.51 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do SPY and VNQ overlap?
1.8% by weight, across 29 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/spy-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/spy-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: SPY correlations · VNQ correlations
