Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both HBAN and VNQI fall intoTier 3: Specialty. This suggests they share a similar risk profile and volatility expectation.
| Metric | HBAN | VNQI |
|---|---|---|
| Total Return (1Y) | 17.51% | 20.84% |
| NAV Change (1Y) | 13.96% | 16.34% |
| Max Drawdown | -33.46% | -22.43% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
HBAN (Huntington Bancshares Incorporated) is a sector-specific income fund managed by institutional managers. It focuses on generating income through strategic holdings. With significant capital, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
VNQI (Vanguard Global ex-US Real Estate) is a sector-specific income fund managed by Vanguard. It focuses on generating income through strategic holdings. With $3.9B in assets under management, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
In the head-to-head battle of HBAN vs VNQI, the choice depends on your specific goal. VNQI wins for Immediate Income with a 4.50% yield. However, VNQI is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
HBAN
Annual Yield: 3.55%
$296/mo
($3,547/year)
Frequency: quarterly
VNQI
Annual Yield: 4.50%
$375/mo
($4,497/year)
Frequency: annual
Income Gap: VNQI generates $950/year more than HBAN on the same $100k investment.
Over 20 years, that's $19,008 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. VNQI has delivered a superior Total Return of 20.84% over the past year.
What is Max Drawdown? Max drawdown measures the largest peak-to-trough decline in portfolio value during a specific period. Unlike NAV change (which only looks at start vs. end), max drawdown captures the worst moment of pain an investor experienced.
Real-World Scenario: $100,000 Investment
VNQI (More Resilient)
Max Drawdown: -22.43%
-$22,430
Worst unrealized loss
HBAN (More Volatile)
Max Drawdown: -33.46%
-$33,460
Worst unrealized loss
Protection Value: VNQI saved investors $11,030 in drawdown severity on a $100k position.
Why This Matters More Than Total Return: During bear markets or corrections, investors with lower max drawdown are:
⚖️ Capital Preservation Winner: VNQI demonstrated superior downside protection, making it the better choice for retirees who cannot afford steep temporary losses.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.