VTI vs VNQ: Head-to-Head Comparison
VTI vs VNQ: Vanguard Total Stock Market ETF has an expense ratio of 0.03% while Vanguard Real Estate ETF charges 0.12%. VTI holds 3,644 securities vs VNQ's 160. 5-year returns: 15.20% vs 4.80%.
Last updated: April 2026
Total Market vs Real Estate
Quick Verdict
VTI edges out VNQ with a stronger Beginner Suitability Score (9.5 vs 8.5). It offers lower fees for new investors.
Side-by-Side Comparison
| Metric | VTI | VNQ |
|---|---|---|
| Expense Ratio | 0.03% | 0.12% |
| AUM | $430.0B | $34.0B |
| Dividend Yield | 1.30% | 3.90% |
| Holdings | 3,644 | 160 |
| 1-Year Return | 25.80% | 11.20% |
| 5-Year Return (Ann.) | 15.20% | 4.80% |
| 10-Year Return (Ann.) | 12.80% | 6.50% |
| Beta | 1.00 | 1.05 |
| P/E Ratio | 24.5 | 35.2 |
VTI 5-year annualized return is 15.20% compared to VNQ's 4.80%. Over 10 years, VTI returned 12.80% vs VNQ's 6.50%.
View data table
| Period | VTI Return | VNQ Return |
|---|---|---|
| YTD | 2.90% | 0.80% |
| 1 Year | 25.80% | 11.20% |
| 3 Year | 10.20% | 2.10% |
| 5 Year | 15.20% | 4.80% |
| 10 Year | 12.80% | 6.50% |
Key Differences Between VTI and VNQ
VTI (Vanguard Total Stock Market ETF) is a u.s. total market fund managed by Vanguard. VTI gives you exposure to the entire U.S. stock market in one fund, covering large-cap, mid-cap, and small-cap companies. With over 3,600 holdings, it is one of the most diversified U.S. equity ETFs you can buy. Beginners often choose VTI over S&P 500 funds because it includes smaller companies that have historically provided additional growth potential.
VNQ (Vanguard Real Estate ETF) is a real estate fund managed by Vanguard. VNQ provides exposure to the U.S. real estate market through Real Estate Investment Trusts (REITs) without the hassle of buying physical property. REITs are required by law to distribute at least 90% of their taxable income as dividends, which gives VNQ a higher yield than most equity ETFs. Beginners interested in real estate investing can use VNQ to add property exposure to their portfolio at a fraction of the cost of buying a building.
The most notable differences are in fees (0.03% vs 0.12%), number of holdings (3,644 vs 160), and 5-year returns (15.20% vs 4.80%).
VTI vs VNQ multi-factor comparison: VTI has a 0.03% expense ratio, 15.20% 5-year return, 3,644 holdings, 1.00 beta, and 1.30% yield. VNQ has 0.12% expense ratio, 4.80% 5-year return, 160 holdings, 1.05 beta, and 3.90% yield.
View data table
| Metric | VTI | VNQ |
|---|---|---|
| Expense Ratio | 0.03% | 0.12% |
| 5-Year Return | 15.20% | 4.80% |
| Holdings | 3,644 | 160 |
| Beta | 1.00 | 1.05 |
| Dividend Yield | 1.30% | 3.90% |
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Holdings Overlap Analysis
0%
Holdings Overlap
VTI and VNQ share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
VTI and VNQ share 0% of their top holdings (low overlap). VTI has 3,644 total holdings and VNQ has 160.
View data table
| Metric | VTI | VNQ |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 3,644 | 160 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
VTI
Fee cost: $258
VNQ
Fee cost: $1,025
Over 20 years, the fee difference amounts to $767 on a $10,000 investment. VTI saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, VTI (0.03% fee) grows to $46,351 while VNQ (0.12% fee) grows to $45,585. The fee difference costs $766.
View data table
| Year | VTI Value | VNQ Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,673 | $14,612 |
| 10 | $21,529 | $21,351 |
| 15 | $31,590 | $31,197 |
| 20 | $46,351 | $45,585 |
Which One Should a Beginner Choose?
Choose VTI if: You want investors who want complete u.s. stock market coverage in a single fund, beginners building a simple two-fund or three-fund portfolio, long-term investors who want small-cap exposure alongside large-caps. It's managed by Vanguard with an expense ratio of 0.03%.
Choose VNQ if: You want income-seeking investors who want real estate exposure without being a landlord, investors looking to diversify beyond stocks and bonds, those who want inflation protection through real asset ownership. It's managed by Vanguard with an expense ratio of 0.12%.
Can You Own Both VTI and VNQ?
Absolutely! With only 0% overlap, VTI and VNQ complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy VTI or VNQ?▾
VTI edges out VNQ with a stronger Beginner Suitability Score (9.5 vs 8.5). It offers lower fees for new investors. However, both are solid options. VTI is best for investors who want investors who want complete u.s. stock market coverage in a single fund, while VNQ is better suited for income-seeking investors who want real estate exposure without being a landlord.
What is the difference between VTI and VNQ?▾
VTI (Vanguard Total Stock Market ETF) tracks u.s. total market investments with 3,644 holdings and a 0.03% expense ratio. VNQ (Vanguard Real Estate ETF) focuses on real estate with 160 holdings at 0.12%. Their top holdings overlap by 0%.
Can I own both VTI and VNQ?▾
Yes! With only 0% holdings overlap, VTI and VNQ complement each other well. Owning both gives you broader diversification.