ETF Comparison: ICF vs VNQ
ETF Descriptions
ICF - iShares Cohen & Steers REIT ETF
The iShares Cohen & Steers REIT ETF provides exposure to the US real estate sector, offering a diversified portfolio of mid and large-cap REITs. The fund tracks the S&P Cohen & Steers US Realty Majors Portfolio Index, which includes a range of real estate investment trusts. REITs can provide a regular income stream and indirect exposure to real estate prices, making them an attractive option for investors seeking diversification and income generation.
VNQ - Vanguard Real Estate ETF
The Vanguard Real Estate ETF (VNQ) provides diversified exposure to the US real estate market, investing in a broad range of equity REITs, specialized REITs, and real estate firms. The fund offers a cost-effective way to gain indirect exposure to real estate prices, with the potential for income generation and low correlation with traditional stock and bond investments.
Comparison Table
| ICF | VNQ | |
|---|---|---|
| Fund Name | iShares Cohen & Steers REIT ETF | Vanguard Real Estate ETF |
| Fund Provider | BlackRock | Vanguard |
| Index | S&P Cohen & Steers US Realty Majors Portfolio Index | MSCI US Investable Market Real Estate 25/50 Index |
| Asset Class | Real Estate | Real Estate |
| Listing | US-listed | US-listed |
| Expense Ratio | 0.33% | 0.12% |
| Inception Date | 2001-01-29 | 2004-09-23 |
| Number Of Holdings | 31 | 160 |
| Region | United States | United States |
| Investment Style | Blend | Blend |
| Market Cap | Blend | Blend |
| Sector | Real Estate | Real Estate |
| Leveraged | Non-leveraged | Non-leveraged |
Backtesting Options
Key Metrics
Performance Metrics
Risk Metrics
Detailed Returns
Benchmark Comparison
Performance Analysis
The performance analysis evaluates historical data to measure investment strategy returns through key metrics like Cumulative returns, End of Year (EoY) returns, and risk-adjusted measures such as the Sharpe ratio and Sortino ratio. This helps investors assess both absolute and relative performance across different market conditions.
Cumulative Returns
End of Year Returns Table
End of Year Returns
Risk Analysis
The risk analysis refers to an assessment of potential negative events that could lead to a loss of capital. Conducting a risk analysis can help in deciding whether an investment should be made. This is done using risk metrics such as drawdowns, volatility and beta which reflect stakeholders' confidence in the consistency of an investment strategy.
Drawdowns
Drawdowns Table
Monte Carlo Simulation
The Monte Carlo simulation is a statistical method used to forecast portfolio returns by generating a wide range of potential outcomes through random sampling from historical asset price data. It helps investors assess the potential risk and return of a portfolio under various market conditions. The simulation takes into account the initial investment and optionally simulates cash flow scenarios like fixed contributions, fixed withdrawals, or percentage withdrawals.
IMPORTANT: The forecast generated through Monte Carlo simulations is purely hypothetical and does not guarantee future returns. Investment decisions should be made with consideration of various factors, and past performance is not indicative of future results.