VNQ alternatives and similar ETFs

VNQ alternatives at a glance#

Each fund below can stand in for VNQ, closest first. “Same kind” funds hold the same kind of stocks through a different index. “Related” funds make a different bet that often moves the same way.

Fees come from each fund company, checked on the dates shown on each fund’s page.

How VNQ and its alternatives did over the same dates#

Each row measures the alternative and VNQ on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

Each VNQ alternative, compared#

IYR: iShares U.S. Real Estate ETF#

IYR also holds US real estate investment trusts (REITs), companies that own and rent out property. It tracks the Dow Jones U.S. Real Estate Capped Index, while VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index.

It charges 0.37% a year, about $37 on $10,000, against $13 for VNQ. It held 58 stocks, against 139 for VNQ.

From September 2004 to October 2026, IYR returned about 6.5% a year and VNQ returned about 7.3% a year. Over about the last five years they moved almost exactly together (correlation 1.00).

Read the IYR fund page for its returns by year and worst drop.

SCHH: Schwab U.S. REIT ETF#

SCHH also holds US real estate investment trusts (REITs), companies that own and rent out property. It tracks the Dow Jones Equity All REIT Capped Index, while VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index.

It charges 0.07% a year, about $7 on $10,000, against $13 for VNQ. It held 117 stocks, against 139 for VNQ.

From January 2011 to October 2026, SCHH returned about 6.6% a year and VNQ returned about 7.4% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the SCHH fund page for its returns by year and worst drop.

XLRE: State Street Real Estate Select Sector SPDR ETF#

XLRE also holds US real estate investment trusts (REITs), companies that own and rent out property. It tracks the Real Estate Select Sector Index, while VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index.

It charges 0.08% a year, about $8 on $10,000, against $13 for VNQ. It held 30 stocks, against 139 for VNQ.

From October 2015 to October 2026, XLRE returned about 6.7% a year and VNQ returned about 5.5% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the XLRE fund page for its returns by year and worst drop.

RWO: State Street SPDR Dow Jones Global Real Estate ETF#

RWO is a looser match. It holds property companies around the world, while VNQ holds US real estate investment trusts (REITs), companies that own and rent out property.

It charges 0.5% a year, about $50 on $10,000, against $13 for VNQ. It held 224 stocks, against 139 for VNQ.

From May 2008 to October 2026, RWO returned about 3.6% a year and VNQ returned about 6.2% a year. Over about the last five years they moved almost exactly together (correlation 0.97).

Read the RWO fund page for its returns by year and worst drop.

RWX: State Street SPDR Dow Jones International Real Estate ETF#

RWX is a looser match. It holds property companies around the world, while VNQ holds US real estate investment trusts (REITs), companies that own and rent out property.

It charges 0.59% a year, about $59 on $10,000, against $13 for VNQ. It held 126 stocks, against 139 for VNQ.

From December 2006 to October 2026, RWX returned about 0.4% a year and VNQ returned about 5.2% a year. Over about the last five years they often moved together, but not always (correlation 0.70).

Read the RWX fund page for its returns by year and worst drop.

VPU: Vanguard Utilities ETF#

VPU is a looser match. It holds US electric, gas and water companies, while VNQ holds US real estate investment trusts (REITs), companies that own and rent out property.

It charges 0.09% a year, about $9 on $10,000, against $13 for VNQ. It held 68 stocks, against 139 for VNQ.

From September 2004 to October 2026, VPU returned about 9.3% a year and VNQ returned about 7.3% a year. Over about the last five years they often moved together, but not always (correlation 0.66).

Read the VPU fund page for its returns by year and worst drop.

XLU: State Street Utilities Select Sector SPDR ETF#

XLU is a looser match. It holds US electric, gas and water companies, while VNQ holds US real estate investment trusts (REITs), companies that own and rent out property.

It charges 0.08% a year, about $8 on $10,000, against $13 for VNQ. It held 31 stocks, against 139 for VNQ.

From September 2004 to October 2026, XLU returned about 9.3% a year and VNQ returned about 7.3% a year. Over about the last five years they often moved together, but not always (correlation 0.65).

Read the XLU fund page for its returns by year and worst drop.

VNQ versions from other fund companies#

Some people keep all their funds with one company. Here is the closest fund to VNQ from each other company on this page:

• iShares (BlackRock): IYR, iShares U.S. Real Estate ETF (same kind of fund, 0.37% a year)
• Schwab: SCHH, Schwab U.S. REIT ETF (same kind of fund, 0.07% a year)
• SPDR (State Street): XLRE, State Street Real Estate Select Sector SPDR ETF (same kind of fund, 0.08% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company’s index mutual fund, are not listed here.

How to choose between VNQ and its alternatives#

• What it tracks. A fund on the same index holds the same stocks. A different index can mean different weights, more or fewer holdings, or a different mix.
• The fee. The difference is often small. On $10,000, VNQ costs about $13 a year. SCHH costs about $7.
• History. An older fund has been through more bad markets, so you can see how far it fell.
• What you already own. Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

Swapping VNQ to harvest a tax loss#

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a “substantially identical” security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as IYR, SCHH or XLRE, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test VNQ and its alternatives in a backtest#

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the builder, add VNQ and IYR, and see how each would have done on the same dates, or how a mix of both would have done.

The details#

Alternatives are picked from facts, not from returns. First come funds that track the same index as VNQ. Then come funds that hold the same kind of stocks through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like VNQ over about the last five years come first. Returns and worst drops use Tactfolio’s stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with VNQ only on days both traded. Read what a backtest simulates for more on these measures.