VNQ vs VTI: Correlation & Overlap
How closely do Vanguard Real Estate ETF (VNQ) and Vanguard Total Stock Market ETF (VTI) trade together? Their weekly returns over three years give a correlation of 0.55, which is moderate. By holdings, the two funds overlap 2.3% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VNQ and VTI?
Across a 3-year window, the weekly returns of VNQ and VTI correlate at 0.55, moderate. The link has loosened recently: the 1-year correlation (0.32) runs below the 3-year figure (0.55). Stretching to 5 years gives 0.71, with an annualized covariance of 133.1 %².
Within VNQ's tracked universe of 149 assets, VTI comes in at #105 by 3-year correlation. Over the last 12 months VTI came out ahead by 10.4 percentage points (+10.3% against +20.7%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.32 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 VTI: side by side
| VNQ (Vanguard Real Estate ETF) | VTI (Vanguard Total Stock Market ETF) | |
|---|---|---|
| 1-year return | +10.3% | +20.7% |
| 5-year return | +9.5% | +74.8% |
| Volatility (ann.) | 16.6% | 14.6% |
| Beta vs S&P 500 | 0.59 | 1.01 |
| Max drawdown (3Y) | -17.5% | -19.3% |
| Dividend yield | 3.51% | 1.06% |
| Expense ratio | 0.13% | 0.03% |
| Assets under management | $73.1B | $2,290.0B |
| 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. VTI, Vanguard's Large Blend fund, carries $2,290.0B under management, 3140 holdings, a 0.03% expense ratio, a 1.06% trailing dividend yield.
Portfolio overlap between VNQ and VTI
The two portfolios are largely distinct: 2.3% of the funds' weight sits in the same underlying holdings (138 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VNQ | Weight in VTI |
|---|---|---|
| WELL | 8.54% | 0.23% |
| PLD | 7.04% | 0.19% |
| EQIX | 5.25% | 0.14% |
| AMT | 4.22% | 0.11% |
| SPG | 3.89% | 0.10% |
| DLR | 3.38% | 0.09% |
| O | 3.08% | 0.08% |
| PSA | 2.84% | 0.08% |
| VTR | 2.32% | 0.06% |
| CBRE | 2.26% | 0.06% |
| IRM | 1.90% | 0.05% |
| CCI | 1.74% | 0.05% |
| EXR | 1.63% | 0.04% |
| VICI | 1.38% | 0.04% |
| AVB | 1.35% | 0.04% |
Largest positions held only by VNQ: VRTPX (14.54%), LB (0.11%). Only by VTI: NVDA (6.42%), AAPL (6.31%), MSFT (4.80%), AMZN (3.66%), GOOGL (2.91%).
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 | VTI |
|---|---|---|
| 2022 | -26.3% | -19.5% |
| 2023 | +11.9% | +26.0% |
| 2024 | +4.8% | +23.8% |
| 2025 | +3.2% | +17.1% |
| 2026 | +12.5% | +14.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VNQ and VTI good diversifiers for each other?
Only partially. A correlation of 0.55 means VNQ and VTI 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 VNQ and VTI?
As of 2026-08-27, the correlation of weekly returns between VNQ and VTI is 0.55 over 3 years, 0.32 over 1 year and 0.71 over 5 years.
Is VTI a good diversifier for VNQ?
Only partially. A correlation of 0.55 means VNQ and VTI share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do VNQ and VTI overlap?
The two funds share 138 holdings amounting to 2.3% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vnq-vs-vti.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vnq-vs-vti/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VNQ correlations · VTI correlations
