VNQ vs XLB — 20-Year Performance Comparison
Real Estate (REIT) vs Materials — backtested 2005–2024
XLB wins$50,514 vs $37,027 on $10,000 over 20 years
VNQReal Estate (REIT)
Final value$37,027
CAGR+6.8%
Max drawdown-47.3%
Best year+41% (2021)
Years won11 of 20
XLBMaterials
Final value$50,514
CAGR+8.4%
Max drawdown-44.9%
Best year+48% (2009)
Years won9 of 20
Growth of $10,000
2005–2024VNQXLB
VNQ$37,027
XLB$50,514
50/50 mix$45,759
50/50 blend: $45,759 (+7.9%/yr CAGR)
Splitting equally between VNQ and XLB would have landed between the two — slightly lower CAGR than XLB but less volatility. Try a custom split →
Year-by-year: VNQ vs XLB
| Year | VNQ | XLB | Winner |
|---|---|---|---|
| 2024 | +4.8% | +6.5% | XLB |
| 2023 | +11.8% | +11.9% | XLB |
| 2022 | -26.2% | -13.8% | XLB |
| 2021 | +40.5% | +27.3% | VNQ |
| 2020 | -4.7% | +20.6% | XLB |
| 2019 | +28.9% | +24.5% | VNQ |
| 2018 | -6.0% | -14.7% | VNQ |
| 2017 | +4.9% | +22.1% | XLB |
| 2016 | +8.6% | +17.4% | XLB |
| 2015 | +2.4% | -8.0% | VNQ |
| 2014 | +30.4% | +6.9% | VNQ |
| 2013 | +2.3% | +25.6% | XLB |
| 2012 | +17.6% | +15.4% | VNQ |
| 2011 | +8.6% | -9.8% | VNQ |
| 2010 | +28.4% | +20.5% | VNQ |
| 2009 | +30.1% | +47.6% | XLB |
| 2008 | -37.0% | -44.9% | VNQ |
| 2007 | -16.3% | +22.9% | XLB |
| 2006 | +35.2% | +22.4% | VNQ |
| 2005 | +11.6% | +11.0% | VNQ |
More comparisons
Build your portfolio
Mix VNQ + XLB with custom allocations
Try a 70/30 or 40/60 split — or add up to 3 more ETFs. See exactly how your custom portfolio would have performed.
Open Portfolio Builder →Past performance does not guarantee future results.