Data as of Oct 28, 2026.
VNQ vs XLF: Differences, Returns & Fees
Over the year to Oct 28, 2026, VNQ returned +4.8% to XLF's +7.6%; 0% of their weight is in the same names.
askIQ about this page
askIQ about VNQ and XLF
Net assets: $35.9bn on Sep 30, 2026 for Vanguard Real Estate ETF, and $51.6bn on Oct 27, 2026 for State Street Financial Select Sector SPDR ETF.
Pair scorecard
XLF costs 0.05 points a year less; their one-year returns differ by 2.8 points; XLF is 1.4 times larger.
| Measure | VNQ | XLF |
|---|---|---|
| Return | ||
| Total return, 1 year | +4.8% | +7.6% |
| Drawdown | ||
| Below its high | 8.3%, high on Jul 28, 2026 | 3.8%, high on Sep 3, 2026 |
| Benchmark | ||
| What it tracks | MSCI US Investable Market Real Estate 25/50 Index | Financial Select Sector Index |
| Cost and size | ||
| Expense ratio | 0.13% | 0.08% |
| Net assets, as of Sep 30, 2026 | $35.9bn | $51.0bn |
| Holdings | ||
| Holdings in common | 0% | |
| Top ten holdings, share of the fund | 55.8% | 57.4% |
Holdings in common uses holdings dated Sep 30, 2026 and Oct 27, 2026. Method
Risk and return
Oct 8, 2004 to Oct 23, 2026 · 1,150 weekly returnsVNQ returned more: +364.5% to +270.7%. VNQ swung slightly less: 25.0% to 26.4%. VNQ fell less at its worst: −72.5% to −82.7%.
Full scorecard
9 measures, with how each is measured Open ↓
| Measure | VNQ | XLF | Edge | How it is measured |
|---|---|---|---|---|
| Return | ||||
| Total return | +364.5% | +270.7% | VNQ | Price change plus distributions, reinvested. |
| Annualized | +7.2% | +6.1% | VNQ | Total return as a yearly rate. |
| Price return | +80.5% | +93.8% | XLF | Price change alone, distributions left out. |
| Risk | ||||
| Volatility | 25.0% | 26.4% | VNQ (slight) | Spread of weekly returns, annualized. Lower is steadier. |
| Downside deviation | 17.3% | 18.2% | VNQ (slight) | Like volatility, counting only weeks below the Treasury bill rate. |
| Max drawdown | −72.5% | −82.7% | VNQ | Deepest fall from a high to the low after it. |
| Risk-adjusted | ||||
| Sharpe | 0.33 | 0.29 | VNQ | Return above Treasury bills per unit of volatility. |
| Sortino | 0.48 | 0.42 | VNQ | Return above Treasury bills per unit of downside deviation. |
| Calmar | 0.10 | 0.07 | VNQ | Annualized return divided by the max drawdown. |
Computed by ETFIQ from Tiingo daily prices and ETFIQ's distribution records, 1,150 weekly returns. Cash rate: the 13-week Treasury bill.
What they share
By the books each fund has filed, VNQ and XLF hold 0% of their money in the same securities at the same weight. Holdings dated Sep 30, 2026 and Oct 27, 2026.
half
0% in common
Only in one fund ↓
Side by side
VNQ and XLF on the fields both publish, as of Oct 28, 2026. Source: ETFIQ.
VNQ and XLF do different jobs. What does each one do in a portfolio?
- What each follows. VNQ follows MSCI US Investable Market Real Estate 25/50 Index and XLF follows Financial Select Sector Index.
- Holdings in common. 0% of the weight is in the same securities (holdings dated Sep 30, 2026 and Oct 27, 2026).
- One-year total return. Over 1 year to Oct 28, 2026 VNQ returned +4.8% and XLF +7.6% with distributions reinvested, a gap of 2.8 points.
Data as of Oct 28, 2026.
The two-page PDF for this pair is coming. Save the comparison to follow its changes. Free. It needs an email sign-in, once.
VNQ
VNQ tracks an index of US real estate. Over the year to Oct 28, 2026 it returned +4.8% with distributions reinvested. The prospectus expense ratio is 0.13% a year. By its holdings published by its issuer as of Sep 30, 2026, 63% of the fund by weight is stocks the S&P 500 also holds, across 141 positions, with the top ten at 55.8%. It sat 8.3% below its high of Jul 28, 2026 on Oct 28, 2026.
XLF
XLF tracks an index of Financials. Over the year to Oct 28, 2026 it returned +7.6% with distributions reinvested. The prospectus expense ratio is 0.08% a year. By its holdings published by its issuer for Oct 27, 2026, 100% of the fund by weight is stocks the S&P 500 also holds, across 77 positions, with the top ten at 57.4%. It sat 3.8% below its high of Sep 3, 2026 on Oct 28, 2026.
Questions people ask
- Which returned more over the last year, VNQ or XLF?
- In the year to Oct 28, 2026, with distributions reinvested, VNQ returned +4.8% and XLF +7.6%.
- Which is cheaper, VNQ or XLF?
- XLF is cheaper, by 0.05 percentage points a year. That is about $5 on $10,000 held for a year. Fees come from each fund's prospectus.
Links are sources, not endorsements. A comparison is not a recommendation.
How this is computed
Overlap adds up the smaller of the two weights for each security both funds hold.
Cite this pageCitation, APA and Markdown
ETFIQ, VNQ against XLF, data as of Oct 28, 2026. https://etfiq.com/compare/any/vnq-vs-xlf
ETFIQ. (Oct 28, 2026). VNQ against XLF. Retrieved from https://etfiq.com/compare/any/vnq-vs-xlf
[VNQ against XLF (ETFIQ, Oct 28, 2026)](https://etfiq.com/compare/any/vnq-vs-xlf)
Free to use with attribution for data ETFIQ computes; issuer data stays under its owner's terms.