VIG vs VNQ: Correlation & Overlap
Vanguard Dividend Appreciation ETF (VIG) and Vanguard Real Estate ETF (VNQ) show a strong relationship: their 3-year correlation of weekly returns is 0.67. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VIG and VNQ?
Across a 3-year window, the weekly returns of VIG and VNQ correlate at 0.67, strong. The relationship has been stable: the 1-year correlation (0.58) sits close to the 3-year figure. Stretching to 5 years gives 0.77, with an annualized covariance of 132.7 %².
Within VIG's tracked universe of 106 assets, VNQ comes in at #40 by 3-year correlation. Over the last 12 months VIG came out ahead by 6.8 percentage points (+17.1% against +10.3%). On a rolling one-year basis the correlation drifted between 0.58 and 0.87, a moderate band.
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.
VIG vs VNQ: side by side
| VIG (Vanguard Dividend Appreciation ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +17.1% | +10.3% |
| 5-year return | +64.0% | +9.5% |
| Volatility (ann.) | 11.9% | 16.6% |
| Beta vs S&P 500 | 0.74 | 0.59 |
| Max drawdown (3Y) | -15.0% | -17.5% |
| Dividend yield | 1.50% | 3.51% |
| Expense ratio | 0.04% | 0.13% |
| Assets under management | $130.9B | $73.1B |
| Sector / category | ETF · Dividend | ETF · Real Estate |
VIG, Vanguard's Large Blend fund, carries $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% 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 VIG and VNQ
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by VIG: AVGO (4.65%), AAPL (4.47%), MSFT (4.35%), JPM (4.09%), LLY (3.94%). 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 2026-07-31.
Year-by-year returns
| Year | VIG | VNQ |
|---|---|---|
| 2022 | -9.8% | -26.3% |
| 2023 | +14.5% | +11.9% |
| 2024 | +17.0% | +4.8% |
| 2025 | +14.2% | +3.2% |
| 2026 | +11.6% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VIG and VNQ good diversifiers for each other?
Only partially. A correlation of 0.67 means VIG and VNQ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between VIG and VNQ?
As of 2026-08-27, the correlation of weekly returns between VIG and VNQ is 0.67 over 3 years, 0.58 over 1 year and 0.77 over 5 years.
Is VNQ a good diversifier for VIG?
Only partially. A correlation of 0.67 means VIG and VNQ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do VIG and VNQ overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vig-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vig-vs-vnq/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VIG correlations · VNQ correlations
