VNQ vs XLRE
Vanguard Real Estate Index Fund ETF Shares vs State Street Real Estate Select Sector SPDR ETF
Last updated: 2026-04-10
Vanguard Real Estate Index Fund ETF Shares (VNQ) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges a low expense ratio of 0.13%. The fund offers an attractive dividend yield of 3.75%. Launched in 2004, the fund has a 22-year track record.
State Street Real Estate Select Sector SPDR ETF (XLRE) is an exchange-traded fund issued by SPDR that provides exposure to us sector - real estate securities. It charges a low expense ratio of 0.08%. The fund offers an attractive dividend yield of 3.27%. Launched in 2015, the fund has a 11-year track record.
Quick Verdict
XLRE has a slightly lower expense ratio (0.08% vs 0.13%), saving about $99 per $10,000 over 10 years. Both funds have delivered similar 1-year returns (12.5% vs 11.5%), tracking closely.
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
9 of top 10 holdings overlap (90% overlap in top holdings)
VNQ Top Holdings
| Name | Weight |
|---|---|
| Vanguard Real Estate II Index Fund!mutf/VRTPX | 14.38% |
| Welltower Inc.WELL | 7.52% |
| Prologis, Inc.PLD | 7.08% |
| Equinix, Inc.EQIX | 5.11% |
| American Tower CorporationAMT | 4.80% |
| Simon Property Group, Inc.SPG | 3.56% |
| Realty Income CorporationO | 3.27% |
| Digital Realty Trust, Inc.DLR | 3.25% |
| Public StoragePSA | 2.59% |
| CBRE Group, Inc.CBRE | 2.35% |
XLRE Top Holdings
| Name | Weight |
|---|---|
| Welltower Inc.WELL | 10.17% |
| Prologis, Inc.PLD | 9.10% |
| Equinix, Inc.EQIX | 7.12% |
| American Tower CorporationAMT | 5.87% |
| Digital Realty Trust, Inc.DLR | 4.60% |
| Simon Property Group, Inc.SPG | 4.58% |
| CBRE Group, Inc.CBRE | 4.53% |
| Ventas, Inc.VTR | 4.36% |
| Realty Income CorporationO | 4.35% |
| Public StoragePSA | 4.33% |
Which One Should You Choose?
Choose XLRE if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Choose VNQ if...
you prioritize dividend income and want higher regular distributions from your portfolio.