VNQ vs. XLRE: Bigger, Broader Fund Matches Sector ETF's Returns

Overview

• VNQ manages about $65.4 billion across roughly 158 holdings, versus XLRE at about $7.5 billion with 31 stocks.
• XLRE confines its portfolio to S&P 500 real estate names, giving heavier weights to leaders such as Welltower, Prologis, and American Tower.
• VNQ casts a wider net across large-, mid-, and small-cap REITs, delivering broader diversification than the sector-focused XLRE.
• Costs and income differ, with XLRE charging 0.08% to VNQ’s 0.13% while VNQ yields around 3.9% compared with 3.4% for XLRE.
• Recent results aligned, showing identical 1-year returns of -0.9% and comparable five-year growth, and both funds exclude mortgage REITs and use no leverage.