VNQ vs VUG: Correlation & Overlap
Vanguard Real Estate ETF (VNQ) and Vanguard Growth ETF (VUG) show a moderate relationship: their 3-year correlation of weekly returns is 0.33. By holdings, the two funds overlap 1.0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VNQ and VUG?
Across a 3-year window, the weekly returns of VNQ and VUG correlate at 0.33, moderate. The past 12 months show a weaker link (0.08) than the 3-year average (0.33). Stretching to 5 years gives 0.56, with an annualized covariance of 107.5 %².
Among the 149 assets we track against VNQ, VUG ranks #135 by 3-year correlation. On 12-month performance VUG holds a 5.9-point edge, +10.3% against +16.2%. The relationship is regime-dependent: the rolling one-year correlation swung between 0.07 and 0.79 over the past three years, so this pair behaves very differently depending on the market environment.
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 VUG: side by side
| VNQ (Vanguard Real Estate ETF) | VUG (Vanguard Growth ETF) | |
|---|---|---|
| 1-year return | +10.3% | +16.2% |
| 5-year return | +9.5% | +78.4% |
| Volatility (ann.) | 16.6% | 19.4% |
| Beta vs S&P 500 | 0.59 | 1.28 |
| Max drawdown (3Y) | -17.5% | -22.8% |
| Dividend yield | 3.51% | 0.40% |
| Expense ratio | 0.13% | 0.03% |
| Assets under management | $73.1B | $372.0B |
| Sector / category | ETF · Real Estate | ETF · US Style |
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. VUG, Vanguard's Large Growth fund, carries $372.0B under management, 146 holdings, a 0.03% expense ratio, a 0.40% trailing dividend yield.
Portfolio overlap between VNQ and VUG
The two portfolios are largely distinct. Weighing the shared positions, 1.0% of the two funds is identical, spread across 5 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in VNQ | Weight in VUG |
|---|---|---|
| WELL | 8.54% | 0.48% |
| EQIX | 5.25% | 0.30% |
| O | 3.08% | 0.10% |
| SBAC | 1.00% | 0.07% |
| CSGP | 0.63% | 0.03% |
Largest positions held only by VNQ: VRTPX (14.54%), PLD (7.04%), AMT (4.22%), SPG (3.89%), DLR (3.38%). Only by VUG: NVDA (12.84%), AAPL (12.63%), MSFT (9.61%), GOOGL (5.81%), AMZN (5.16%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31. Top 5 common positions shown.
Year-by-year returns
| Year | VNQ | VUG |
|---|---|---|
| 2022 | -26.3% | -33.2% |
| 2023 | +11.9% | +46.8% |
| 2024 | +4.8% | +32.7% |
| 2025 | +3.2% | +19.4% |
| 2026 | +12.5% | +9.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VNQ and VUG good diversifiers for each other?
A fair diversifier. At 0.33, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between VNQ and VUG?
The VNQ/VUG correlation stands at 0.33 on a 3-year window (1 year: 0.08, 5 years: 0.56), computed from weekly returns as of 2026-08-27.
Is VUG a good diversifier for VNQ?
A fair diversifier. At 0.33, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do VNQ and VUG overlap?
Per the issuers' own portfolio disclosures (2026-07-31), the overlap is 1.0% by weight over 5 common positions.
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Hubs: VNQ correlations · VUG correlations
