VNQ vs XLRE: Yield, Cost and Returns Compared
As of Nov 5, 2026, VNQ yields more: 3.53% (dividend yield) against 3.25% for XLRE. XLRE is cheaper to own at 0.08% a year vs 0.13%. Over the same 11 years (Oct 2015 to Oct 2026), XLRE returned 6.7% a year with distributions reinvested, and VNQ 5.6%.
VNQVanguard Real Estate Index Fund ETF Shares3.53%dividend yield| Compared | VNQ | XLRE |
|---|---|---|
| YieldDividend yield | 3.53% | 3.25% |
| Expense ratio | 0.13% | 0.08% |
| Total return, 1 yr | +9.3% | +9.3% |
| Total return, 3 yr (a year) | +13.2% | +13.1% |
| Total return, 5 yr (a year) | +0.9% | +1.4% |
| Total return, 10 yr (a year) | +5.5% | +7.0% |
| Worst drop since Oct 2015 | -32.7% | -32.3% |
| Share price since Oct 2015 | +18% | +39% |
| Pays | Quarterly | Quarterly |
| Issuer | Vanguard | State Street Investment Management |
| Assets | $68.1B | $8.2B |
| Started | 2004 | 2015 |
| Type | Real Estate | Real Estate |
Higher yield
VNQ
3.53%
Lower cost
XLRE
0.08%
Better total return
XLRE
6.7%/yr
Smaller worst drop
XLRE
-32.3%
Key facts: VNQ vs XLRE
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, VNQ yields 3.53% (dividend yield) and XLRE yields 3.25% (dividend yield).
- VNQ's expense ratio is 0.13% and XLRE's is 0.08%: $13 vs $8 a year on $10,000.
- From Oct 2015 to Oct 2026, $10,000 in VNQ grew to $18,244 (5.6% a year) and $10,000 in XLRE to $20,363 (6.7% a year), distributions reinvested.
- Their worst month-end drops over that time: -32.7% for VNQ and -32.3% for XLRE.
- 9 of VNQ's top ten holdings are also in XLRE's top ten, an overlap of at least 41% of the fund.
Cite this page
SmarterDividends, "VNQ vs XLRE: Yield, Cost and Returns Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/vnq-vs-xlre
$10,000 in each, Oct 2015 to Oct 2026
Distributions reinvested, month-end values, with the S&P 500 for reference.
VNQ became
$18,244
5.6% a year
XLRE became
$20,363
6.7% a year
Year by year
| Year | VNQ | XLRE |
|---|---|---|
| 2025 | +3.2% | +2.6% |
| 2024 | +4.8% | +5.1% |
| 2023 | +11.8% | +12.4% |
| 2022 | −26.2% | −26.2% |
| 2021 | +40.5% | +46.1% |
| 2020 | −4.6% | −2.2% |
| 2019 | +28.9% | +28.6% |
| 2018 | −6.0% | −2.4% |
| 2017 | +4.9% | +10.7% |
| 2016 | +8.6% | +2.8% |
Total return each calendar year, distributions reinvested.
Top holdings
9 of the top ten overlap, at least 41% of each fund.
VNQ
- VRTPX Vanguard Real Estate II Index14.5%
- WELL Welltower Inc9.1%
- PLD Prologis Inc6.9%
- EQIX Equinix Inc5.7%
- AMT American Tower Corp4.3%
- SPG Simon Property Group Inc3.7%
- DLR Digital Realty Trust Inc3.7%
- O Realty Income Corp2.8%
- PSA Public Storage2.7%
- VMRK Vivmark Residential2.5%
XLRE
- WELL Welltower Inc11.3%
- PLD Prologis Inc8.1%
- EQIX Equinix Inc6.7%
- AMT American Tower Corp5.9%
- PSA Public Storage5.0%
- SPG Simon Property Group Inc4.8%
- DLR Digital Realty Trust Inc4.3%
- VMRK Vivmark Residential4.3%
- VTR Ventas Inc4.3%
- O Realty Income Corp4.3%
VNQ vs XLRE: questions
Is VNQ or XLRE better?
It depends on the job. VNQ pays more today (3.53% vs 3.25%), XLRE costs less, and XLRE has the better total return over Oct 2015 to Oct 2026, with XLRE holding up better in its worst stretch. For income, look at yield and whether the payouts hold up; for growth, total return and drawdowns.
Which pays a higher dividend, VNQ or XLRE?
VNQ, at 3.53% against 3.25% for XLRE as of Nov 5, 2026. On $10,000 that's about $353 vs $325 a year at today's rates.
Which has the better total return?
XLRE. From Oct 2015 to Oct 2026, it returned 6.7% a year with distributions reinvested, against 5.6% for VNQ. $10,000 became $20,363 vs $18,244.
Which is cheaper, VNQ or XLRE?
XLRE, with a 0.08% expense ratio against 0.13%.
Do VNQ and XLRE hold the same things?
Partly. 9 of their top ten holdings match (WELL, PLD, EQIX, AMT), at least 41% of each fund. Owning both doubles up on those.
Related comparisons
Yields, costs and holdings as each fund reports them (via Yahoo Finance), updated daily; returns from month-end prices with distributions reinvested. XLRE leads on 5 of 8 measures above. For information only, not investment advice. Last fund data: Nov 5, 2026.