VBR vs VNQ: how much do they really overlap?
VBR (Vanguard Small-Cap Value ETF, tracking the CRSP US Small Cap Value) and VNQ (Vanguard Real Estate ETF, tracking the MSCI US IMI Real Estate 25/50) overlap by roughly 11% by weight. 0 of VBR's top 10 holdings also appear in VNQ. A 50/50 blend of the two behaves like about 86 equally-weighted bets (diversification grade A). In short, the two funds have only a small shared core — they mostly hold different things and are largely complementary.
The same companies, in both funds
These 6 holdings appear in both VBR and VNQ. The weight columns show how much of each fund each name represents.
| Holding | in VBR | in VNQ |
|---|---|---|
| ESS Essex Property Trust Inc. | 0.40% | 1.00% |
| INVH Invitation Homes Inc. | 0.38% | 0.87% |
| KIM Kimco Realty Corp. | 0.36% | 0.91% |
| HST Host Hotels & Resorts Inc. | 0.35% | 0.87% |
| MAA Mid-America Apartment Communities Inc. | 0.34% | 0.86% |
| WPC WP Carey Inc. | 0.34% | 0.83% |
Only in VBR
Vanguard Small-Cap Value ETF — US small-cap value. Its biggest holdings that VNQ doesn’t have:
| JBL Jabil Inc. | 0.87% |
| NRG NRG Energy Inc. | 0.66% |
| TPR Tapestry Inc. | 0.63% |
| ATO Atmos Energy Corp. | 0.61% |
| WSM Williams-Sonoma Inc. | 0.58% |
| MRNA Moderna Inc. | 0.53% |
| SW Smurfit Westrock plc | 0.52% |
| FFIV F5 Networks Inc. | 0.50% |
Only in VNQ
Vanguard Real Estate ETF — US real estate. Its biggest holdings that VBR doesn’t have:
| VRTPX Vanguard Real Estate II Index Fund Institutional Plus Shares | 14.42% |
| WELL Welltower Inc. | 8.41% |
| PLD Prologis Inc. | 6.70% |
| EQIX Equinix Inc. | 5.46% |
| AMT American Tower Corp. | 4.05% |
| SPG Simon Property Group Inc. | 3.86% |
| DLR Digital Realty Trust Inc. | 3.28% |
| O Realty Income Corp. | 3.04% |
So — mostly different. Should you hold both?
VBR and VNQ have only a small shared core — they mostly hold different things and are largely complementary. Held together they genuinely broaden your exposure — a 50/50 blend reaches ~86 effective positions (grade A), because they hold largely different securities.
Holdings as of — VBR: Jun 30, 2026 (Vanguard); VNQ: Jun 30, 2026 (Vanguard). Refreshed monthly. Overlap is measured across each fund’s largest holdings (top 50); the diffuse long tail barely moves the math.
See this for YOUR whole portfolio, free →VBR vs VNQ — FAQ
- How much do VBR and VNQ overlap?
- VBR and VNQ overlap by approximately 11% measured by portfolio weight — that is the share of the smaller fund's holdings (by weight) that also sit inside the other. 0 of VBR's 10 largest holdings are also held by VNQ. They share 6 of their listed top holdings in total.
- Is it redundant to hold both VBR and VNQ?
- Because they have only a small shared core — they mostly hold different things and are largely complementary, holding both is not redundant — each fund covers largely different holdings, so together they broaden your exposure. A 50/50 blend has an effective 86 positions and a A diversification grade.
- What does VNQ hold that VBR doesn't?
- VNQ's largest holdings that VBR doesn't hold include VRTPX, WELL, PLD, EQIX, AMT. Its category is US real estate, versus VBR's US small-cap value.
- Which is more concentrated, VBR or VNQ?
- VBR's top 10 holdings are 29% of its listed weight; VNQ's are 62%. The more concentrated fund leans harder on its largest names.