VNQ vs VWIUX
Vanguard Real Estate ETF vs Vanguard Intermediate Term Tax-Exempt Fund admiral class
Which is better, VNQ or VWIUX?
Mid Cap Blend against Municipal Bond.
VWIUX has a lower expense ratio.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VNQ | VWIUX |
|---|---|---|
| Expense Ratio | 0.13% | 0.09%Best |
| AUM | $35.9B | $86.6B |
| Dividend Yield | 3.80% | 3.58% |
| Holdings | 144 | 16,510 |
| YTD Price Return | +2.07% | -5.07% |
| 1Y Price Return | +0.84% | -4.66% |
| 3Y Price Return (annualized) | +5.76% | +0.26% |
| 5Y Price Return (annualized) | -3.23% | -2.28% |
| Volatility (annualized) | 19.2% | 5.6%Best |
| Max Drawdown | -38.8% | -15.4%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Tax Preferred |
| Style | Mid Cap Blend | Municipal Bond |
| Inception | Sep 23, 2004 | Feb 12, 2001 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VNQ currently yields 3.80% and VWIUX 3.58%.
Volatility and max drawdown are measured over the window both funds cover: Oct 15, 2021 to Oct 13, 2026 (5 years).
VNQ vs VWIUX Performance
Vanguard Real Estate ETF (VNQ) is an ETF from Vanguard (US) and Vanguard Intermediate Term Tax-Exempt Fund admiral class (VWIUX) is a mutual fund from Vanguard (US). Over the past year VNQ's price moved +0.84% and VWIUX's -4.66%, before the income each one paid out.
Over three years, VNQ compounded at +5.76% per year against +0.26% for VWIUX; over five years the annualized figures are -3.23% and -2.28% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VNQ has been the more volatile fund, with annualized monthly volatility of 19.2% compared with 5.6% for VWIUX. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -38.8% for VNQ and -15.4% for VWIUX. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VNQ charges 0.13% per year while VWIUX charges 0.09%. On a $10,000 position that is $13 vs $9 annually, a gap of $4 per year that compounds over a long holding period. On income, VNQ currently yields 3.80% against 3.58% for VWIUX.
Structure and taxes
VWIUX is a mutual fund and VNQ is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 140 holdings in VNQ and 1,698 in VWIUX, totalling 99.5% and 17.8% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 62 days apart, VNQ as of Aug 31, 2026 and VWIUX as of Jun 30, 2026, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 140 positions we hold weights for in VNQ and 1,698 in VWIUX, against full books of 144 and 16,510.
You are not choosing between two funds in isolation.
Whichever of VNQ and VWIUX you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VNQ or VWIUX?
VNQ has an expense ratio of 0.13% while VWIUX charges 0.09%. VWIUX is the cheaper option, by $4 a year on a $10,000 investment.
Which is riskier, VNQ or VWIUX?
VNQ has been the more volatile fund at 19.2% annualized versus 5.6% for VWIUX. Worst drawdown: VNQ -38.8% vs VWIUX -15.4%.
Should I hold both VNQ and VWIUX?
VNQ and VWIUX have a monthly-return correlation of 0.69, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VNQ or VWIUX?
VNQ yields 3.80% while VWIUX yields 3.58%, so VNQ currently pays the higher dividend yield.
Is it better to hold VWIUX or VNQ in a taxable account?
VNQ is an ETF and VWIUX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VWIUX better than VNQ?
VWIUX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.