Data as of Oct 28, 2026.
VNQ vs XLU: Differences, Returns & Fees
Over the year to Oct 28, 2026, VNQ returned +4.8% to XLU's −3.0%; 0% of their weight is in the same names.
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askIQ about VNQ and XLUNet assets: $35.9bn on Sep 30, 2026 for Vanguard Real Estate ETF, and $23.9bn on Oct 27, 2026 for State Street Utilities Select Sector SPDR ETF.
Pair scorecard
XLU costs 0.05 points a year less; their one-year returns differ by 7.8 points; VNQ is 1.7 times larger.
| Measure | VNQ | XLU |
|---|---|---|
| Return | ||
| Total return, 1 year | +4.8% | −3.0% |
| Drawdown | ||
| Below its high | 8.3%, high on Jul 28, 2026 | 9.1%, high on Feb 27, 2026 |
| Benchmark | ||
| What it tracks | MSCI US Investable Market Real Estate 25/50 Index | Utilities Select Sector Index |
| Cost and size | ||
| Expense ratio | 0.13% | 0.08% |
| Net assets, as of Sep 30, 2026 | $35.9bn | $21.3bn |
| Holdings | ||
| Holdings in common | 0% | |
| Top ten holdings, share of the fund | 55.8% | 58.7% |
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 returnsXLU returned more: +609.3% to +364.5%. XLU swung less: 17.8% to 25.0%. XLU fell less at its worst: −45.2% to −72.5%.
Full scorecard
9 measures, with how each is measured Open ↓
| Measure | VNQ | XLU | Edge | How it is measured |
|---|---|---|---|---|
| Return | ||||
| Total return | +364.5% | +609.3% | XLU | Price change plus distributions, reinvested. |
| Annualized | +7.2% | +9.3% | XLU | Total return as a yearly rate. |
| Price return | +80.5% | +233.4% | XLU | Price change alone, distributions left out. |
| Risk | ||||
| Volatility | 25.0% | 17.8% | XLU | Spread of weekly returns, annualized. Lower is steadier. |
| Downside deviation | 17.3% | 12.7% | XLU | Like volatility, counting only weeks below the Treasury bill rate. |
| Max drawdown | −72.5% | −45.2% | XLU | Deepest fall from a high to the low after it. |
| Risk-adjusted | ||||
| Sharpe | 0.33 | 0.48 | XLU | Return above Treasury bills per unit of volatility. |
| Sortino | 0.48 | 0.68 | XLU | Return above Treasury bills per unit of downside deviation. |
| Calmar | 0.10 | 0.20 | XLU | 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 XLU 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 XLU on the fields both publish, as of Oct 28, 2026. Source: ETFIQ.
VNQ and XLU 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 XLU follows Utilities 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 XLU −3.0% with distributions reinvested, a gap of 7.8 points.
Data as of Oct 28, 2026.
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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.
XLU
XLU tracks an index of Utilities. Over the year to Oct 28, 2026 it returned −3.0% 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 32 positions, with the top ten at 58.7%. It sat 9.1% below its high of Feb 27, 2026 on Oct 28, 2026.
Questions people ask
- Which returned more over the last year, VNQ or XLU?
- In the year to Oct 28, 2026, with distributions reinvested, VNQ returned +4.8% and XLU −3.0%.
- Which is cheaper, VNQ or XLU?
- XLU 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 XLU, data as of Oct 28, 2026. https://etfiq.com/compare/any/vnq-vs-xlu
ETFIQ. (Oct 28, 2026). VNQ against XLU. Retrieved from https://etfiq.com/compare/any/vnq-vs-xlu
[VNQ against XLU (ETFIQ, Oct 28, 2026)](https://etfiq.com/compare/any/vnq-vs-xlu)
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