VNQ vs VWO: Correlation & Overlap
Vanguard Real Estate ETF (VNQ) and Vanguard FTSE Emerging Markets ETF (VWO) show a moderate relationship: their 3-year correlation of weekly returns is 0.42. Looking through to holdings, 0.1% 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 VWO?
Over the past 3 years, VNQ and VWO moved with a correlation of 0.42, which is moderate. Little has changed lately, as the 1-year reading of 0.35 lands near the 3-year figure. Over 5 years the correlation is 0.45, and the annualized covariance of weekly returns is 105.4 %².
By 3-year correlation, VWO places #126 of the 149 assets tracked against VNQ. On 12-month performance VWO holds a 11.3-point edge, +10.3% against +21.6%. The rolling one-year correlation moved between 0.27 and 0.67 over the past three years, a moderate range.
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 VWO: side by side
| VNQ (Vanguard Real Estate ETF) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +10.3% | +21.6% |
| 5-year return | +9.5% | +38.2% |
| Volatility (ann.) | 16.6% | 15.2% |
| Beta vs S&P 500 | 0.59 | 0.75 |
| Max drawdown (3Y) | -17.5% | -17.4% |
| Dividend yield | 3.51% | 2.36% |
| Expense ratio | 0.13% | 0.06% |
| Assets under management | $73.1B | $162.0B |
| Sector / category | ETF · Real Estate | ETF · International |
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. On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Portfolio overlap between VNQ and VWO
The two portfolios are largely distinct: 0.1% of the funds' weight sits in the same underlying holdings (4 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by VNQ: VRTPX (14.54%), WELL (8.54%), PLD (7.04%), EQIX (5.25%), AMT (4.22%). Only by VWO: 2330 (18.65%), 700 (3.97%), 9988 (2.90%), 2454 (1.62%), 939 (1.07%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-07-31. Top 4 common positions shown.
Year-by-year returns
| Year | VNQ | VWO |
|---|---|---|
| 2022 | -26.3% | -18.0% |
| 2023 | +11.9% | +9.3% |
| 2024 | +4.8% | +10.6% |
| 2025 | +3.2% | +25.6% |
| 2026 | +12.5% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VNQ and VWO good diversifiers for each other?
A fair diversifier. At 0.42, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between VNQ and VWO?
As of 2026-08-27, the correlation of weekly returns between VNQ and VWO is 0.42 over 3 years, 0.35 over 1 year and 0.45 over 5 years.
Is VWO a good diversifier for VNQ?
A fair diversifier. At 0.42, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do VNQ and VWO overlap?
0.1% by weight, across 4 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-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vnq-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VNQ correlations · VWO correlations
