VNQ: Vanguard Real Estate ETF

Vanguard Real Estate ETF (VNQ) is an exchange-traded fund (ETF) run by Vanguard. This fund owns shares of about 140 US companies that own or run real estate, such as offices, apartments, warehouses, and cell towers. It charges 0.13% a year. From September 2004 to October 2026 it returned about 7.3% a year, and its worst drop was −73.1%.

Written by the Tactfolio research team. Fund facts checked October 16, 2026. Prices through October 16, 2026.

Yearly fee
0.13%
about $13 on $10,000
Return per year
7.3%
since September 2004
Worst drop
−73.1%
since 2004
Started trading
Sep 2004
Vanguard

Key points

  • Expense ratio: 0.13% a year (about $13 on $10,000).
  • Started trading on September 23, 2004.
  • Worst drop since 2004: −73.1%.
  • 21 Tactfolio classic strategies hold it.

What does VNQ hold?#

This fund owns shares of about 140 US companies that own or run real estate, such as offices, apartments, warehouses, and cell towers. Most of these companies are REITs, which must pay out most of their taxable income to their owners. Because it holds only real estate companies, it is less spread out than a fund that owns the whole stock market.

It tracks the MSCI US Investable Market Real Estate 25/50 Index. It had 139 holdings as of September 30, 2026, according to Vanguard.

FactVNQ
Full nameVanguard Real Estate ETF
IssuerVanguard
Expense ratio0.13% a year
Started tradingSeptember 23, 2004
TracksMSCI US Investable Market Real Estate 25/50 Index
TypeReal estate, ETF
Holdings139 holdings as of September 30, 2026
Facts checkedOctober 16, 2026 on the Vanguard fund page

What is the VNQ expense ratio?#

VNQ charges 0.13% a year. An expense ratio is the yearly fee a fund takes to run itself. On $10,000, a 0.13% fee comes to about $13 a year.

You never get a bill for it. The fund takes the fee out of its own value a little each day.

How has VNQ done since 2004?#

$10k$20k$50k20052008201120142017202020232026
VNQGrowth of $10,000, log scale, with dividends reinvested. Past results do not tell you what happens next.

From September 2004 to October 2026, VNQ returned about 7.3% a year. Say you put in $10,000 at the start. It would have been worth about $47,475 at the end, with every dividend reinvested.

MeasureVNQ
Total return374.8%
Return per year (CAGR)7.3%
Worst drop from a high−73.1%
Volatility (how much it swings)28.2%
Last 12 months5.1%
Last 3 years, per year10.6%
Last 5 years, per year0.9%
Last 10 years, per year5.1%

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.

VNQ returns by year#

YearVNQ return
2026 (part of the year)6.6%
20253.3%
20244.8%
202311.8%
2022−26.3%
202140.5%
2020−4.6%
201928.9%
2018−6.0%
20174.9%
20168.6%
20152.4%
201430.4%
20132.3%
201217.6%
20118.6%
201028.4%
200930.1%
2008−37.0%
2007−16.5%
200635.3%
200511.9%
2004 (part of the year)16.0%

What was VNQ’s worst drop?#

0%−10%−20%−30%−40%−50%−60%−70%20052008201120142017202020232026
Drawdown: how far VNQ was below its last high on each day.

A drawdown is how far a fund falls from its last high point. VNQ’s worst fall was −73.1%, from February 7, 2007 to March 6, 2009. It got back to that high on September 7, 2012.

The chart shows how far below its last high the fund was on each day. Big drops are normal for some funds. They matter because selling during a drop locks in the loss.

Which Tactfolio strategies hold VNQ?#

21 classic strategies hold VNQ at least some of the time. Each is a set of written rules you can open, test and copy.

How does VNQ compare with similar ETFs?#

Funds that can stand in for VNQ:

  • SCHH: Schwab U.S. REIT ETF, 0.07% a year
  • XLRE: State Street Real Estate Select Sector SPDR ETF, 0.08% a year
  • IYR: iShares U.S. Real Estate ETF, 0.37% a year
  • RWO: State Street SPDR Dow Jones Global Real Estate ETF, 0.5% a year

See all 7 VNQ alternatives, compared on the same dates as VNQ.

Test VNQ in your own rules#

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 see how a rule such as “hold it only above its 200-day average” would have done. Strategies run on daily prices and hold US stocks and ETFs only.

The details#

Prices come from Tactfolio’s stored daily prices for VNQ. Each close is adjusted for splits, and dividends are reinvested on the day the fund pays them out. CAGR is the steady yearly return that turns the starting value into the ending value. Volatility is the yearly standard deviation of daily returns.

Fund facts come from Vanguard. We checked them on October 16, 2026. Read what a backtest simulates and how to read drawdown and CAGR for more on these measures.

Research and test it

Common questions#

What is the expense ratio of VNQ?#

VNQ charges 0.13% a year, according to Vanguard as of October 16, 2026. That is about $13 a year for every $10,000 you hold.

When did VNQ start trading?#

VNQ started trading on September 23, 2004. It is run by Vanguard.

What does VNQ track?#

VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index. This fund owns shares of about 140 US companies that own or run real estate, such as offices, apartments, warehouses, and cell towers.

How much has VNQ returned per year?#

From September 2004 to October 2026, VNQ returned about 7.3% a year with dividends reinvested. Its worst drop was −73.1%. Past returns do not tell you what it will do next.

Which strategies use VNQ?#

21 of Tactfolio’s classic strategies hold VNQ, including Hybrid Asset Allocation (HAA), Bold Asset Allocation (BAA), Defensive Asset Allocation (DAA).

Sources#