VNQ vs VOO: Correlation & Overlap
How closely do Vanguard Real Estate ETF (VNQ) and Vanguard S&P 500 ETF (VOO) trade together? Their weekly returns over three years give a correlation of 0.51, which is moderate. By holdings, the two funds overlap 1.9% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VNQ and VOO?
Across a 3-year window, the weekly returns of VNQ and VOO correlate at 0.51, moderate. The past 12 months show a weaker link (0.28) than the 3-year average (0.51). Stretching to 5 years gives 0.69, with an annualized covariance of 122.3 %².
Among the 149 assets we track against VNQ, VOO ranks #116 by 3-year correlation. The trailing year gives VOO the advantage: +10.3% versus +20.6%, a 10.3-point spread. This link changes with the market regime, having swung between 0.28 and 0.88 on a rolling one-year basis.
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.
VNQ vs VOO: side by side
| VNQ (Vanguard Real Estate ETF) | VOO (Vanguard S&P 500 ETF) | |
|---|---|---|
| 1-year return | +10.3% | +20.6% |
| 5-year return | +9.5% | +83.0% |
| Volatility (ann.) | 16.6% | 14.4% |
| Beta vs S&P 500 | 0.59 | 0.99 |
| Max drawdown (3Y) | -17.5% | -18.7% |
| Dividend yield | 3.51% | 1.07% |
| Expense ratio | 0.13% | 0.03% |
| Assets under management | $73.1B | $1,686.9B |
| Sector / category | ETF · Real Estate | ETF · US Large Cap |
VNQ, Vanguard's Real Estate fund, carries $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield. VOO, Vanguard's Large Blend fund, carries $1,686.9B under management, 503 holdings, a 0.03% expense ratio, a 1.07% trailing dividend yield.
Portfolio overlap between VNQ and VOO
The two portfolios are largely distinct, with 31 holdings in common adding up to 1.9% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VNQ | Weight in VOO |
|---|---|---|
| WELL | 8.54% | 0.26% |
| PLD | 7.04% | 0.21% |
| EQIX | 5.25% | 0.16% |
| AMT | 4.22% | 0.13% |
| SPG | 3.89% | 0.12% |
| DLR | 3.38% | 0.10% |
| O | 3.08% | 0.09% |
| PSA | 2.84% | 0.08% |
| VTR | 2.32% | 0.07% |
| CBRE | 2.26% | 0.07% |
| IRM | 1.90% | 0.06% |
| CCI | 1.74% | 0.05% |
| EXR | 1.63% | 0.05% |
| VICI | 1.38% | 0.04% |
| AVB | 1.35% | 0.04% |
Largest positions held only by VNQ: VRTPX (14.54%), JLL (0.87%), WPC (0.84%), SUI (0.79%), OHI (0.78%). Only by VOO: NVDA (7.56%), AAPL (7.05%), MSFT (5.37%), AMZN (4.13%), GOOGL (3.25%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31. Top 15 common positions shown.
Year-by-year returns
| Year | VNQ | VOO |
|---|---|---|
| 2022 | -26.3% | -18.2% |
| 2023 | +11.9% | +26.3% |
| 2024 | +4.8% | +25.0% |
| 2025 | +3.2% | +17.8% |
| 2026 | +12.5% | +13.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VNQ and VOO good diversifiers for each other?
To a limited degree. At 0.51 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 VNQ and VOO?
The VNQ/VOO correlation stands at 0.51 on a 3-year window (1 year: 0.28, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is VOO a good diversifier for VNQ?
To a limited degree. At 0.51 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
How much do VNQ and VOO overlap?
The two funds share 31 holdings amounting to 1.9% of weight, per issuer portfolio files dated 2026-07-31.
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Hubs: VNQ correlations · VOO correlations
