VNQ vs REET Stock Comparison: AI Score, Valuation, Performance and Upside
VNQ (Vanguard Real Estate) and REET (iShares Global REIT) are both REIT ETFs providing real estate exposure — VNQ concentrates in the U.S. REIT market with ultra-low cost and maximum liquidity, while REET adds international diversification across Japan, Australia, Europe, and Singapore at similar low cost. VNQ is the pure U.S. REIT play; REET provides the same U.S. core plus international real estate diversification.
VNQ vs REET is U.S. REIT market depth (all U.S. property types at Vanguard's low cost) versus global REIT diversification (60% U.S. plus 40% international real estate in one ETF) — the choice between home-country REIT concentration and global real estate exposure.
VNQ holds the edge across 3 of 5 key metrics in this comparison. REET has delivered stronger 1-year price return (+8.00% vs +5.86% for VNQ).
- Want pure U.S. REIT exposure at ultra-low cost (0.12%) with maximum liquidity and a long track record of tracking U.S. real estate investment trusts
- Value the breadth of U.S. REIT property types including data centers and cell towers (which represent a growing share of VNQ's portfolio) alongside traditional apartment, industrial, and healthcare REITs
- Prefer to avoid currency risk from international REIT holdings — U.S. REITs operate and pay dividends in USD with no foreign exchange exposure
- Want global real estate diversification — approximately 60% U.S. REITs plus 40% international REITs in Japan, Australia, Europe, and Singapore for broader property cycle exposure
- Value slightly higher dividend yield from international REIT inclusion (particularly Japanese J-REITs and Australian listed property trusts that often trade at higher yields)
- Accept currency risk from international holdings as a feature rather than a bug — hedging U.S. real estate cycle risk with global property market exposure
| Metric | VNQ | REET |
|---|---|---|
| ETF scorei | 40.0 | 45.0 |
| Latest closei | $93.81 | $26.49 |
| 1M returni | -3.90% | -4.17% |
| 6M returni | +4.43% | +4.49% |
| 1Y returni | +5.86% | +8.00% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | VNQ | REET |
|---|---|---|
| 1Y ago | $11K (+10.0%) started 2025-09-17 | $11.2K (+12.0%) started 2025-09-17 |
| 5Y ago | $13.19K (+31.9%) started 2021-09-17 | $13.14K (+31.4%) started 2021-09-17 |
| 10Y ago | $25.89K (+158.9%) started 2016-09-19 | $23.56K (+135.6%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | VNQ | REET |
|---|---|---|
| Expense ratioi | 0.13% | 0.14% |
| Total assets (AUM)i | $70.82B | $4.94B |
| Dividend yieldi | 3.60% | 3.38% |
| Trailing P/Ei | 29.37 | 22.19 |
| Betai | 0.98 | 0.93 |
| 52-week change | 5.86% | 8.00% |
| Metric | VNQ | REET |
|---|---|---|
| 1Y returni | +5.86% | +8.00% |
| 6M returni | +4.43% | +4.49% |
| 1M returni | -3.90% | -4.17% |
| 1Y Sharpe ratio | 0.16 | 0.33 |
| Betai | 0.98 | 0.93 |
| Dividend yieldi | 3.60% | 3.38% |
| 5Y CAGR | +1.33% | +1.83% |
Over the past year, VNQ and REET have moved strongly in the same direction (correlation of 0.95), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | VNQ | REET |
|---|---|---|---|
| 1Y | Growthi | +5.86% | +8.00% |
| CAGRi | +5.86% | +8.00% | |
| Volatilityi | 13.54% | 12.12% | |
| Sharpe ratioi | 0.16 | 0.33 | |
| Sortino ratioi | 0.22 | 0.46 | |
| Max drawdowni | 8.34% | 9.04% | |
| Current drawdowni | 7.07% | 7.52% | |
| Avg drawdowni | 2.27% | 2.16% | |
| Ulcer Indexi | 2.94% | 2.95% | |
| Max daily dropi | 3.10% | 3.07% | |
| Max wkly dropi | 4.81% | 4.24% | |
| 5Y | Growthi | +6.85% | +9.51% |
| CAGRi | +1.33% | +1.83% | |
| Volatilityi | 18.87% | 16.93% | |
| Sharpe ratioi | -0.07 | -0.07 | |
| Sortino ratioi | -0.10 | -0.10 | |
| Max drawdowni | 34.48% | 32.11% | |
| Current drawdowni | 7.07% | 7.52% | |
| Avg drawdowni | 14.51% | 13.27% | |
| Ulcer Indexi | 16.96% | 15.73% | |
| Max daily dropi | 5.00% | 4.60% | |
| Max wkly dropi | 12.07% | 11.12% | |
| 10Y | Growthi | +61.54% | +45.74% |
| CAGRi | +4.92% | +3.84% | |
| Volatilityi | 20.70% | 18.80% | |
| Sharpe ratioi | 0.12 | 0.06 | |
| Sortino ratioi | 0.16 | 0.08 | |
| Max drawdowni | 42.40% | 44.59% | |
| Current drawdowni | 7.07% | 7.52% | |
| Avg drawdowni | 10.38% | 10.23% | |
| Ulcer Indexi | 13.72% | 13.69% | |
| Max daily dropi | 17.73% | 16.66% | |
| Max wkly dropi | 24.91% | 28.83% |
| Category | VNQ | REET |
|---|---|---|
| Fund name | Vanguard Real Estate Index Fund ETF Shares | iShares Global REIT ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.13% | 0.14% |
| Total assets (AUM)i | $70.82B | $4.94B |
| Dividend yieldi | 3.60% | 3.38% |
- Ultra-low cost (0.12%) from Vanguard makes VNQ among the cheapest REIT ETFs — preserving more of the REIT dividend income for investors
- Broad exposure across all major U.S. REIT property types provides diversification within real estate — apartments, industrial, data centers, retail, healthcare, and specialty REITs
- High liquidity (one of the most actively traded ETFs) enables institutional and retail investors to efficiently gain or reduce real estate exposure
- International diversification — REET's 40% non-U.S. exposure includes Japanese, Australian, European, and Singapore REITs with different economic drivers, property cycles, and yield characteristics
- Slightly higher yield than VNQ — international REITs (particularly Japanese and Australian) often trade at higher yields than U.S. REITs, slightly boosting REET's overall yield
- Currency diversification — international REIT holdings provide implicit USD hedging as non-U.S. properties generate revenue in local currencies
- U.S.-only exposure — VNQ holds no international real estate, potentially missing global real estate opportunities in Europe, Asia, and emerging markets
- REIT correlation to interest rates — rising rates compress REIT valuations as higher bond yields make REIT dividends less attractive and increase REIT borrowing costs
- Data center and cell tower REITs have grown to be large VNQ weights — these provide technology infrastructure exposure rather than traditional real estate economic drivers
- Currency risk — international REIT dividends earned in JPY, AUD, EUR, and other currencies fluctuate in USD value as exchange rates change, creating currency translation risk
- Higher complexity — tracking global REIT structures (UK property companies, J-REITs, Australian listed property trusts) across different legal frameworks and dividend policies
- Lower U.S. data center and technology REIT concentration — REET's international diversification reduces concentration in U.S. data center REITs (Equinix, Digital Realty) that have driven VNQ outperformance
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