RWR vs. VNQ: How These Popular Real Estate ETFs Stack Up on Fees, Risk, and Performance
Key Points
RWR charges nearly double the expense ratio of VNQ, but it's outperformed over the past five years.
Both ETFs hold similar top REITs, though VNQ offers broader diversification with more holdings.
Risk profiles are closely matched, with similar betas and max drawdowns.
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The Vanguard Real Estate ETF (NYSEMKT:VNQ) and the State Street SPDR Dow Jones REIT ETF (NYSEMKT:RWR) are both designed to give investors access to the U.S. real estate sector via publicly traded REITs.
While their mandates are similar, this comparison highlights differences in expenses, size, diversification, and recent performance that may appeal to different types of real estate-focused investors.
Snapshot (cost & size)
| Metric | VNQ | RWR |
|---|---|---|
| Issuer | Vanguard | SPDR |
| Expense ratio | 0.13% | 0.25% |
| 1-yr return (as of March 18, 2026) | 5.80% | 9.57% |
| Dividend yield | 3.63% | 3.44% |
| Beta (5Y monthly) | 1.15 | 1.12 |
| AUM | $69.6 billion | $1.8 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.
VNQ is more affordable on fees, charging a lower expense ratio than RWR. It also delivers a slightly higher dividend yield, which may appeal to those focused on building long-term income.
Performance & risk comparison
| Metric | VNQ | RWR |
|---|---|---|
| Max drawdown (5 y) | -34.50% | -32.56% |
| Growth of $1,000 over 5 years | $992 | $1,076 |
RWR has posted a stronger total return over five years while also experiencing a slightly milder maximum drawdown. Both ETFs show similar risk levels based on beta, suggesting comparable volatility profiles.
What's inside
RWR seeks to mirror the Dow Jones U.S. Select REIT Capped Index and currently holds 98 U.S.-listed REITs, with a portfolio dominated by Prologis, Welltower, and Equinix. The fund is heavily concentrated in real estate and does not employ leverage, currency hedging, or ESG screens. Launched nearly 25 years ago, it offers investors a strong track record in real estate.
VNQ tracks a broader real estate index, spreading its assets across 146 holdings. It offers similar top exposures to Welltower, Prologis, and Equinix, but with smaller weightings. With nearly 22 years of history, it’s slightly younger than RWR but still supports broad diversification within the property sector.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
RWR and VNQ both cover the real estate sector, but they differ in their diversification.
VNQ holds nearly 50 more positions than RWR, offering slightly broader exposure to the industry. Also, while the two funds have the same top three holdings, they make up 24.73% of RWR’s portfolio compared to 19.77% for VNQ.
Because RWR holds fewer positions and is more concentrated in its top holdings, it could be more susceptible to volatility if those three REITs experience more volatility.
The advantage of a narrower portfolio, however, is that it can lead to higher returns over time if those top holdings perform well. Case in point: RWR has outperformed VNQ slightly in both one- and five-year total returns. While it’s a subtle difference, it matters when these two ETFs share many of the same attributes.
One area where VNQ has a clear advantage, though, is fees. It charges an expense ratio of 0.13% compared to RWR’s 0.25%, meaning investors in RWR will pay roughly double the annual fees of VNQ. For long-term investors and those with large account balances, that could add up to thousands of dollars in fees over time.
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Katie Brockman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Equinix, Prologis, and Vanguard Real Estate ETF. The Motley Fool has a disclosure policy.
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