Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.
O has lagged VNQ over the trailing twelve months, posting a -4.96% total return against 2.16%. The lead holds up over 10 years too: VNQ has compounded at 4.33% a year, against 2.97% for O. Figures are total returns: price change plus every distribution reinvested.
Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Sep 2004” measures every fund from September 29, 2004 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Side-by-side snapshot
Side-by-side snapshot. Each row is one metric;
each column is one fund.
A real estate investment trust that invests in freestanding, single-tenant commercial properties subject to long-term net lease agreements. Known as "The Monthly Dividend Company," Realty Income has a long track record of monthly dividend payments and consistent dividend growth.
Track the MSCI US Investable Market Real Estate 25/50 Index.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.
See our curated list of related YouTube videos on VNQ.
O (Realty Income Corporation) is a real estate investment trust, while VNQ (Vanguard Real Estate ETF) is an ETF — their trading structures differ.
O offers the higher yield at 6.01% vs 3.59% for VNQ. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
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On a $10,000 investment, O would generate roughly $50.08 cash per distribution, while VNQ would produce $89.75 cash per distribution, at current distribution rates.
O yield6.01%
VNQ yield3.59%
Cash diff on $10K$39.67
Cost & efficiency
VNQ charges a 0.13% expense ratio — roughly $130 over 10 years on $10,000 (simplified, not compounded). O is a real estate investment trust, not a fund, so it charges no expense ratio.
VNQ ER0.13%
Strategy & risk
O is a real estate investment trust built around net lease REIT exposure, while VNQ tracks MSCI US IMI Real Estate 25/50 Index with a dividend approach. Beta is 0.712 for O and 0.98 for VNQ, making O the less volatile of the two by this measure.
O beta0.712
VNQ beta0.98
Security details
O (Realty Income Corporation) is a real estate investment trust. VNQ is managed by Vanguard (launched 09/23/2004) with $36.5B in assets.
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Frequently asked questions
What is the difference between VNQ and O?
O (Realty Income Corporation) is a single net-lease REIT — one company, not a fund — and pays 6.01% monthly. VNQ (Vanguard Real Estate ETF) holds a basket of US real-estate stocks and distributes 3.59% quarterly. VNQ charges 0.13%; the stock has no fund expense ratio. Figures as of September 2026. Diversification versus one landlord is the decision.
What is the current distribution rate for O and VNQ?
O currently distributes 6.01% and VNQ 3.59%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is O or VNQ better for dividend income?
It depends on your goals. O currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
Can I hold both O and VNQ?
Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.
Is O or VNQ safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — O scores 100, VNQ scores 90, so O's payout currently looks the more resilient of the two. O has also shown lower price volatility (beta 0.71 vs 0.98 for VNQ). No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
Which has lower fees, O or VNQ?
VNQ charges a 0.13% expense ratio. O is a real estate investment trust, not a fund, so it has no expense ratio — owning it directly costs nothing in ongoing fund fees.
How much income does $10,000 in O vs VNQ generate?
At current rates, $10,000 in O would generate roughly $50.08 cash per distribution ($601.00 annually). The same in VNQ would produce about $89.75 cash per distribution ($359.00 annually).
Which has performed better historically, O or VNQ?
O has lagged VNQ over the trailing twelve months, posting a -4.96% total return against 2.16%. The lead holds up over 10 years too: VNQ has compounded at 4.33% a year, against 2.97% for O. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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The yield gap reflects O's triple-net lease model—where tenants bear maintenance and property taxes—which tends to support higher payouts than the broader REIT average. O's beta of 0.712 suggests lower volatility than the broader market; VNQ's beta of 0.98 tracks closer to overall market sensitivity.
Who each is best for
O: Investors seeking predictable monthly cash flow from a single, operationally established net lease operator with a long dividend-growth history; those comfortable concentrating in one company's lease renewal and tenant credit risk.
Key risks to know
Tenant concentration and lease renewal risk (O):O's yield depends on its tenants renewing leases and paying rent. If a significant tenant defaults or declines to renew, the fund must redeploy capital at potentially lower rates or accept higher vacancy. Single-operator REITs lack the tenant diversification that broader index funds provide.
Property type and economic cycle exposure (O):O's heavy focus on net lease properties—historically retail and restaurant tenants—concentrates risk in sectors that have faced structural headwinds. Market shifts that damage specific property types affect O's cash flow more directly than a diversified REIT index would.
Interest rate sensitivity: Both securities hold real estate assets whose valuations and cap rates respond to rising or falling interest rates. Higher rates typically compress REIT valuations; lower rates expand them. VNQ's diversification across property types and geographies may moderate rate sensitivity relative to O's narrower focus.
NAV risk for high distributions:O's 6.01% distribution yield, while supported by triple-net lease economics, still carries risk of NAV erosion if the company cannot grow cash flow in line with distributions over the long term. Past performance does not guarantee future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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The metrics behind this comparison, explained in the Academy.
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