VNQ — VNQ | U.S. Real Estate ETF | REITs Proxy 13F holdings and portfolio analysis
Sign in to clone a new branch from the selected plan, then continue optimizing in the new branch.
Baseline
Analysis messagesPre-generated Q&A about this fund. Use as reference context for your own analysis.
Directly following the baseline means accepting a very concentrated real-estate proxy with modest returns and limited diversification benefit. The baseline artifact shows sectorWeights of 99.9% Real Estate, top5 concentration of 31.58%, top10 of 47.50%, and top20 of 64.46%. The largest names are Welltower at 8.45%, Prologis at 8.16%, American Tower at 5.66%, Equinix at 5.16%, and Simon Property Group at 4.15%. In return for that exposure, the baseline produced 2.32% annualized return, 25.54% total return, 0.59 beta, and a -30.06% max drawdown, with negative alpha of -5.02%.
The recent baseline periods show that low beta did not prevent meaningful underperformance in strong SPY months. The clearest examples are 2025-04, when the baseline returned 0.82% versus SPY’s 6.28% for a -5.47 point excess gap, and 2025-05, when the baseline lost -0.68% versus SPY gaining 3.75%, a -4.43 point gap. Another weak episode was 2025-09 at -2.20% versus 2.05%, a -4.25 point gap. There were some relative wins, such as 2025-01 at 2.35% versus -2.79% (+5.13 excess) and 2025-10 at 1.53% versus 0.20% (+1.33 excess), but those rebounds were not enough to offset the persistent benchmark lag highlighted by the -5.02 alpha.
Before accepting the baseline, a user should inspect three things: concentration, drawdown path, and turnover. First, concentration is high, with top10 holdings at 47.50% and the portfolio essentially all Real Estate. Second, the baseline drawdown profile is still harsh for a defensive-looking fund: maxDrawdown is -30.06%, and the artifact notes this happened despite the low beta profile. Third, turnover is not trivial in some periods: turnoverSeries includes 1.58 in both 2025-04 and 2025-05, and the risk notes mention a historical 60.7% rebalance month. Those details matter because the baseline and optimized results are not identical at the artifact level only in wording, but the baseline itself still delivers weak Sharpe and persistent negative alpha versus SPY.