VNQ vs VT: Correlation & Overlap
How closely do Vanguard Real Estate ETF (VNQ) and Vanguard Total World Stock ETF (VT) trade together? Their weekly returns over three years give a correlation of 0.57, which is moderate. Looking through to holdings, 1.5% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VNQ and VT?
Over the past 3 years, VNQ and VT moved with a correlation of 0.57, which is moderate. The link has loosened recently: the 1-year correlation (0.38) runs below the 3-year figure (0.57). Over 5 years the correlation is 0.71, and the annualized covariance of weekly returns is 131.7 %².
Within VNQ's tracked universe of 149 assets, VT comes in at #96 by 3-year correlation. The trailing year gives VT the advantage: +10.3% versus +22.7%, a 12.4-point spread. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.38 to 0.89.
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 VT: side by side
| VNQ (Vanguard Real Estate ETF) | VT (Vanguard Total World Stock ETF) | |
|---|---|---|
| 1-year return | +10.3% | +22.7% |
| 5-year return | +9.5% | +67.7% |
| Volatility (ann.) | 16.6% | 13.9% |
| Beta vs S&P 500 | 0.59 | 0.92 |
| Max drawdown (3Y) | -17.5% | -16.5% |
| Dividend yield | 3.51% | 1.59% |
| Expense ratio | 0.13% | 0.06% |
| Assets under management | $73.1B | $97.9B |
| Sector / category | ETF · Real Estate | ETF · Global |
On the fund side, VNQ sits in the Real Estate category at Vanguard, with $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield. VT is a Global Large-Stock Blend fund from Vanguard: $97.9B under management, 5308 holdings, a 0.06% expense ratio, a 1.59% trailing dividend yield.
Portfolio overlap between VNQ and VT
The two portfolios are largely distinct, with 100 holdings in common adding up to 1.5% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in VNQ | Weight in VT |
|---|---|---|
| WELL | 8.54% | 0.15% |
| PLD | 7.04% | 0.12% |
| EQIX | 5.25% | 0.09% |
| AMT | 4.22% | 0.07% |
| SPG | 3.89% | 0.07% |
| DLR | 3.38% | 0.06% |
| O | 3.08% | 0.05% |
| PSA | 2.84% | 0.05% |
| VTR | 2.32% | 0.04% |
| CBRE | 2.26% | 0.04% |
| IRM | 1.90% | 0.03% |
| CCI | 1.74% | 0.03% |
| EXR | 1.63% | 0.03% |
| AVB | 1.35% | 0.02% |
| VICI | 1.38% | 0.02% |
Largest positions held only by VNQ: VRTPX (14.54%), OPEN (0.18%), IVT (0.14%), LB (0.11%), NTST (0.11%). Only by VT: NVDA (4.20%), AAPL (4.00%), MSFT (3.09%), AMZN (2.36%), GOOGL (1.89%).
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 | VT |
|---|---|---|
| 2022 | -26.3% | -18.0% |
| 2023 | +11.9% | +22.0% |
| 2024 | +4.8% | +16.5% |
| 2025 | +3.2% | +22.4% |
| 2026 | +12.5% | +15.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VNQ and VT good diversifiers for each other?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VNQ and VT?
Using weekly returns as of 2026-08-27: 0.57 over 3 years, with 0.38 over the last year and 0.71 over 5 years.
Is VT a good diversifier for VNQ?
Somewhat, no more. With 0.57 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do VNQ and VT overlap?
1.5% by weight, across 100 common holdings, based on issuer-disclosed portfolios as of 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vnq-vs-vt.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/vnq-vs-vt/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VNQ correlations · VT correlations
