ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.
See our curated list of related YouTube videos on VNQ.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.
See our curated list of related YouTube videos on XLRE.
Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
VNQ (Vanguard Real Estate ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both quarterly-pay dividend ETFs, but they take different approaches.
VNQ offers the higher yield at 3.51% vs 3.43% for XLRE. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
XLRE is cheaper with an expense ratio of 0.09% compared to 0.12%.
They track different benchmarks: VNQ is linked to MSCI US IMI Real Estate 25/50 Index while XLRE tracks Real Estate Select Sector Index, which means their performance drivers differ.
VNQ is the larger fund by assets ($37.7B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, VNQ would generate roughly $29.25/month, while XLRE would produce $28.58/month, at current distribution rates. Both pay quarterly distributions.
VNQ yield3.51%
XLRE yield3.43%
Monthly diff on $10K$0.67
Cost & efficiency
Over 10 years on $10,000, VNQ would cost approximately $120 in fees vs $90 for XLRE (simplified, not compounded). The $30.00 difference may be offset by yield or performance.
VNQ ER0.12%
XLRE ER0.09%
Strategy & risk
VNQ tracks MSCI US IMI Real Estate 25/50 Index with a dividend approach, while XLRE tracks Real Estate Select Sector Index. Beta is 1.0 for VNQ and 0.99 for XLRE, indicating XLRE is less volatile relative to the market.
VNQ beta1.0
XLRE beta0.99
Fund details
VNQ is managed by Vanguard (launched 09/23/2004) with $37.7B in assets. XLRE is managed by State Street (launched 10/07/2015) with $8.17B in assets.
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Frequently asked questions
Is VNQ or XLRE better for dividend income?
It depends on your goals. VNQ 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.
What is the difference between VNQ and XLRE?
VNQ (Vanguard Real Estate ETF) tracks MSCI US IMI Real Estate 25/50 Index with a dividend approach, while XLRE (Real Estate Select Sector SPDR Fund) tracks Real Estate Select Sector Index. They are issued by Vanguard and State Street respectively.
Can I hold both VNQ and XLRE?
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.
Which has lower fees, VNQ or XLRE?
VNQ has an expense ratio of 0.12% while XLRE charges 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in VNQ vs XLRE generate?
At current rates, $10,000 in VNQ would generate roughly $29.25 per month ($351.00 annually). The same in XLRE would produce about $28.58 per month ($343.00 annually).
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