VNQ observed max drawdown: 68.3%
Vanguard Real Estate ETF. From its 2007-01-31 peak, VNQ fell 68.3% to the 2009-02-28 trough and needed 5.4 years to make a new high (2012-06-30). Computed from 264 months of observed fund history. Fund inception boundary (first available fund observation): 2004-09-29; the monthly analysis runs from 2004-09-30 through 2026-08-31.
Before 2004-09-29, the extended history is simulated. Observed fund drawdowns come first; simulation assumptions and results are separated below.
What is VNQ's observed maximum drawdown?
VNQ's observed maximum drawdown was 68.3%, from a peak in 2007-01-31 to a trough in 2009-02-28, based on monthly closes from fund prices first observed on 2004-09-29. The sample contains 264 monthly observations through 2026-08-31. Monthly closes can miss deeper daily losses.
| Measure | Value |
|---|---|
| Maximum drawdown | -68.3% |
| Peak | 2007-01-31 |
| Trough | 2009-02-28 |
| Recovered | 2012-06-30 |
| Monthly observations | 264 |
Last verified
What is VNQ's observed maximum drawdown?
VNQ's observed maximum drawdown was 68.3%, from a peak in 2007-01-31 to a trough in 2009-02-28, based on monthly closes from fund prices first observed on 2004-09-29.
How long did VNQ take to recover from its worst drawdown?
VNQ took 5.4 years from the 2007-01-31 peak to make a new high in 2012-06-30, based only on observed fund prices.
What was VNQ's worst 12-month return?
VNQ's worst observed rolling 12-month return was -58.2%, in the 12 months ending 2009-03-31.
VNQ observed fund drawdown statistics
2007-01-31 peak to 2009-02-28 trough.
New high reached 2012-06-30.
Share of all months spent below a prior high.
Rolling year ending 2009-03-31.
The biggest VNQ drawdowns in observed fund history
| Depth | Peak | Trough | Recovered | Peak to trough | Total underwater |
|---|---|---|---|---|---|
| -68.3% | 2007-01-31 | 2009-02-28 | 2012-06-30 | 25 mo | 5.4 years |
| -32.8% | 2021-12-31 | 2023-10-31 | 2026-07-31 | 22 mo | 4.6 years |
| -25.1% | 2020-01-31 | 2020-03-31 | 2021-03-31 | 2 mo | 14 months |
| -14.9% | 2016-07-31 | 2018-02-28 | 2019-01-31 | 19 mo | 2.5 years |
| -13.5% | 2013-04-30 | 2013-08-31 | 2014-04-30 | 4 mo | 12 months |
Methodology: observed VNQ fund prices only, first available from 2004-09-29. Monthly closing-price statistics cover 2004-09-30 through 2026-08-31; no proxy or pre-inception simulation is included in this table. Educational information, not investment advice.
Before 2004-09-29: simulated from the underlying index with assumptions
This separate series combines observed prices with a modeled pre-inception extension from 1971-12-31 through 2026-09-30. The 2026-09-30 endpoint is the legacy current partial-month bucket/month-end label, not evidence that VNQ was observed through that future date. It is not observed VNQ performance. The API's observed boundary is 2004-09-29; observed monthly statistics run from 2004-09-30 through 2026-08-31.
- Rebalancing convention: monthly rebalance at month-end close; drawdown statistics use monthly closing prices.
- Proxy source for VNQ: VGSIX (proxy_etf), from 1996-05-13 to 2004-09-28.
- Proxy source for VNQ: FRESX (proxy_etf), from 1986-11-14 to 1996-05-10.
- Proxy source for VNQ: nareit (static_monthly), from 1971-12-31 to 1986-11-13.
- Proxy source for SPY: VFINX (proxy_etf), from 1976-08-31 to 1993-01-28.
- Proxy source for SPY: spy_tr (static_monthly), from 1900-01-31 to 1976-08-30.
Modeled extended statistics
2007-01-31 peak to 2009-02-28 trough.
New high reached 2012-06-30.
Share of all months spent below a prior high.
Rolling year ending 2009-03-31.
For context, SPY (the S&P 500 baseline) had a maximum drawdown of 50.8% over the same kind of monthly-close analysis.
Modeled extended drawdowns
| Depth | Peak | Trough | Recovered | Peak to trough | Total underwater |
|---|---|---|---|---|---|
| -68.3% | 2007-01-31 | 2009-02-28 | 2012-06-30 | 25 mo | 5.4 years |
| -58.1% | 1973-01-31 | 1974-12-31 | 1977-11-30 | 23 mo | 4.8 years |
| -32.8% | 2021-12-31 | 2023-10-31 | 2026-07-31 | 22 mo | 4.6 years |
| -25.1% | 2020-01-31 | 2020-03-31 | 2021-03-31 | 2 mo | 14 months |
| -24.5% | 1987-03-31 | 1990-10-31 | 1991-04-30 | 43 mo | 4.1 years |
Monthly closing prices, peak-to-trough on total return where available. The pre-inception segment is a reconstruction, not a live fund record, and actual tracking, financing, taxes, spreads, and volatility drag can differ.
Drawdowns are the reason tactical strategies exist
Buy-and-hold VNQ means living through every number on this page. BestFolio tracks published TAA strategies whose whole job is cutting these drawdowns, with out-of-sample track records.