VNQ vs VTR: Correlation
Measured on weekly returns over the past three years, Vanguard Real Estate ETF (VNQ) and Ventas (VTR) carry a correlation of 0.58, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VNQ and VTR?
Across a 3-year window, the weekly returns of VNQ and VTR correlate at 0.58, moderate. The relationship has been stable: the 1-year correlation (0.55) sits close to the 3-year figure. Stretching to 5 years gives 0.64, with an annualized covariance of 205.3 %².
Within VNQ's tracked universe of 149 assets, VTR comes in at #91 by 3-year correlation. Correlation aside, the last 12 months split them widely, with VTR ahead by 30.1 points (+10.3% versus +40.4%). On a rolling one-year basis the correlation drifted between 0.35 and 0.84, 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.
VNQ vs VTR: side by side
| VNQ (Vanguard Real Estate ETF) | VTR (Ventas) | |
|---|---|---|
| 1-year return | +10.3% | +40.4% |
| 5-year return | +9.5% | +98.1% |
| Volatility (ann.) | 16.6% | 21.5% |
| Beta vs S&P 500 | 0.59 | 0.25 |
| Max drawdown (3Y) | -17.5% | -16.7% |
| Market cap | – | $47.6B |
| P/E (trailing) | – | 168.9 |
| Dividend yield | 3.51% | 2.14% |
| Expense ratio | 0.13% | – |
| Assets under management | $73.1B | – |
| Sector / category | ETF · Real Estate | Real Estate |
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.
Year-by-year returns
| Year | VNQ | VTR |
|---|---|---|
| 2022 | -26.3% | -8.5% |
| 2023 | +11.9% | +15.1% |
| 2024 | +4.8% | +22.2% |
| 2025 | +3.2% | +35.1% |
| 2026 | +12.5% | +21.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Fund exposure
A structural note: 2.32% of VNQ is VTR itself, so the fund partly moves with the stock by construction.
Are VNQ and VTR good diversifiers for each other?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between VNQ and VTR?
As of 2026-08-27, the correlation of weekly returns between VNQ and VTR is 0.58 over 3 years, 0.55 over 1 year and 0.64 over 5 years.
Is VTR a good diversifier for VNQ?
Somewhat, no more. With 0.58 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.58 mean?
On the −1 to +1 scale, 0.58 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
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Related comparisons
Hubs: VNQ correlations · VTR correlations
