VNQ vs XLRE: 62% overlap
Vanguard Real Estate ETF and Real Estate Select Sector SPDR Fund share 62.5% of their portfolios by weight — computed as Σ min(wA, wB) over every holding both funds own.
You would hold two tickers and get the diversification of 1.4. Two funds that shared nothing would score 2.0; two identical funds score 1.0.
Top shared holdings
VNQ and XLRE hold 32 of the same securities. The ten contributing most to the overlap figure:
| Holding | in VNQ | in XLRE | Δ |
|---|---|---|---|
| WELL | 8.4% | 11.7% | 3.3% |
| PLD | 6.7% | 9.1% | 2.4% |
| EQIX | 5.5% | 6.9% | 1.4% |
| AMT | 4.0% | 5.2% | 1.1% |
| SPG | 3.9% | 4.9% | 1.1% |
| DLR | 3.3% | 4.7% | 1.4% |
| O | 3.0% | 4.7% | 1.6% |
| PSA | 2.7% | 4.6% | 1.9% |
| VTR | 2.2% | 4.8% | 2.6% |
| CBRE | 2.1% | 4.0% | 1.9% |
Where VNQ and XLRE differ
Sector weights as a share of each fund, ordered by the size of the gap rather than the size of the sector — two funds that overlap heavily still usually diverge somewhere.
| Sector | VNQ | XLRE | Δ |
|---|---|---|---|
| Real Estate | 84.0% | 99.9% | −15.9pp |
| Unclassified | 14.7% | 0.0% | +14.7pp |
| Cash and/or Derivatives | 0.6% | 0.0% | +0.6pp |
| Financials | 0.3% | 0.0% | +0.3pp |
| Consumer Discretionary | 0.2% | 0.0% | +0.2pp |
| Consumer Staples | 0.2% | 0.0% | +0.2pp |
| Industrials | 0.0% | 0.0% | +0.0pp |
| Cash & Other | 0.0% | 0.0% | −0.0pp |
Δ is VNQ minus XLRE, in percentage points. Sector data is not published by every issuer, so “Unclassified” is a real category rather than a gap in the table.
What each fund holds alone
37.0% of VNQ by weight, held in no part of XLRE.
0.0% of XLRE by weight, held in no part of VNQ.
A large count with a small weight is the usual shape: the positions one fund adds are typically its smallest ones.
Concentration and cost
| VNQ | XLRE | |
|---|---|---|
| Top 10 holdings | 54.1% | 60.6% |
| Positions held | 145 | 34 |
| Cost per $10,000 held, per year | $13 | $8 |
Cost is the expense ratio applied to $10,000; it excludes any brokerage commission, bid-ask spread or tax consequence. Figures are facts about the funds, not a suggestion about which to hold.
Frequently asked
How much do VNQ and XLRE overlap?
VNQ and XLRE overlap 62.5% by portfolio weight — substantial duplication if you hold both. They share 32 holdings. The figure comes from current issuer holdings files (VNQ as of 2026-06-30, XLRE as of 2026-07-23).
How is the overlap between VNQ and XLRE calculated?
As the sum of the smaller weight in each fund, over every holding both funds own: Σ min(wA, wB). If VNQ holds a stock at 6% and XLRE holds the same stock at 4%, 4% counts as shared. The result is bounded between 0% and 100%, and it is computed after looking through any fund-of-funds to the underlying holdings.
Is it redundant to hold both VNQ and XLRE?
That depends on your goals — we state facts, not advice. At 62.5% overlap, each fund still contributes meaningfully distinct exposure.
What does VNQ own that XLRE doesn't?
VNQ holds 145 positions and XLRE holds 34; 113 of VNQ's positions don't appear in XLRE at all, and they are 37.0% of VNQ by weight.
You probably hold more than two funds
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Related comparisons
Sources: issuer holdings files, VNQ as of 2026-06-30, XLRE as of 2026-07-23. Weights are fractions of each fund. Diagnostics, not advice.