ITB vs. IYR
ITB (iShares U.S. Home Construction ETF) and IYR (iShares U.S. Real Estate ETF) are both exchange-traded funds - ITB is a Building & Construction fund tracking the Dow Jones U.S. Select Home Construction Index, while IYR is a REIT fund tracking the Dow Jones U.S. Real Estate Index. Both are passively managed. Over the past 10 years, ITB returned 14.32%/yr vs 5.75%/yr for IYR. A 0.60 correlation means they provide meaningful diversification when combined. ITB charges 0.38%/yr vs 0.42%/yr for IYR.
Performance
ITB vs. IYR - Performance Comparison
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Returns By Period
In the year-to-date period, ITB achieves a 1.18% return, which is significantly lower than IYR's 10.64% return. Over the past 10 years, ITB has outperformed IYR with an annualized return of 14.32%, while IYR has yielded a comparatively lower 5.75% annualized return.
ITB
- 1D
- 0.31%
- 1M
- 12.49%
- YTD
- 1.18%
- 6M
- -4.59%
- 1Y
- 8.99%
- 3Y*
- 7.33%
- 5Y*
- 8.75%
- 10Y*
- 14.32%
IYR
- 1D
- -0.75%
- 1M
- 3.79%
- YTD
- 10.64%
- 6M
- 10.25%
- 1Y
- 11.55%
- 3Y*
- 9.07%
- 5Y*
- 2.62%
- 10Y*
- 5.75%
ITB vs. IYR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 1.18% | -5.26% | 2.06% | 68.91% | -26.26% | 49.25% | 26.42% | 48.70% | -30.92% | 59.65% |
IYR iShares U.S. Real Estate ETF | 10.64% | 3.38% | 4.41% | 11.89% | -25.51% | 38.74% | -5.23% | 28.21% | -4.33% | 9.31% |
Correlation
The correlation between ITB and IYR is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.58 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.61 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.62 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.55 |
Correlation (All Time) Calculated using the full available price history since May 5, 2006 | 0.60 |
The correlation between ITB and IYR has been stable across timeframes, ranging from 0.55 to 0.62 - a consistent structural relationship.
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Return for Risk
ITB vs. IYR — Risk / Return Rank
ITB
IYR
ITB vs. IYR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Home Construction ETF (ITB) and iShares U.S. Real Estate ETF (IYR). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| ITB | IYR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.55 | ||
| Sortino ratioReturn per unit of downside risk | -0.53 | ||
| Omega ratioGain probability vs. loss probability | 1.08 | 1.16 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 0.35 | 1.36 | -1.01 |
| Martin ratioReturn relative to average drawdown | 0.67 | 4.24 | -3.57 |
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Drawdowns
ITB vs. IYR - Drawdown Comparison
The maximum ITB drawdown since its inception was -86.53%, which is greater than IYR's maximum drawdown of -74.13%. Use the drawdown chart below to compare losses from any high point for ITB and IYR.
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Drawdown Indicators
| ITB | IYR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -86.53% | -74.13% | -12.40% |
Max Drawdown (1Y)Largest decline over 1 year | -26.04% | -8.54% | -17.50% |
Max Drawdown (3Y)Largest decline over 3 years | -33.35% | -17.52% | -15.83% |
Max Drawdown (5Y)Largest decline over 5 years | -40.55% | -33.75% | -6.80% |
Max Drawdown (10Y)Largest decline over 10 years | -52.10% | -42.32% | -9.78% |
Current DrawdownCurrent decline from peak | -23.30% | -0.75% | -22.55% |
Average DrawdownAverage peak-to-trough decline | -37.08% | -12.89% | -24.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 13.49% | 2.73% | +10.76% |
Volatility
ITB vs. IYR - Volatility Comparison
iShares U.S. Home Construction ETF (ITB) has a higher volatility of 9.26% compared to iShares U.S. Real Estate ETF (IYR) at 4.82%. This indicates that ITB's price experiences larger fluctuations and is considered to be riskier than IYR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ITB | IYR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.26% | 4.82% | +4.44% |
Volatility (6M)Calculated over the trailing 6-month period | 20.89% | 9.90% | +10.99% |
Volatility (1Y)Calculated over the trailing 1-year period | 29.80% | 13.60% | +16.20% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 29.29% | 18.76% | +10.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 30.06% | 20.34% | +9.72% |
ITB vs. IYR - Expense Ratio Comparison
ITB has a 0.38% expense ratio, which is lower than IYR's 0.42% expense ratio.
Dividends
ITB vs. IYR - Dividend Comparison
ITB's dividend yield for the trailing twelve months is around 1.33%, less than IYR's 2.67% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 1.33% | 1.67% | 0.46% | 0.48% | 0.86% | 0.37% | 0.46% | 0.50% | 0.63% | 0.28% | 0.43% | 0.34% |
IYR iShares U.S. Real Estate ETF | 2.67% | 2.48% | 2.57% | 2.75% | 2.92% | 2.06% | 2.58% | 3.05% | 3.53% | 3.73% | 4.41% | 3.92% |
Frequently Asked Questions
ITB and IYR have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ITB has higher volatility (9.26%) compared to IYR (4.82%). In terms of maximum drawdown, ITB dropped -86.53% vs IYR's -74.13%.
On 10-year performance, ITB leads with 14.32% vs 5.75% for IYR. On fees, ITB is cheaper at 0.38% per year. On volatility, IYR has been the lower-risk option at 4.82%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, ITB has performed better with a 14.32% return vs 5.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
ITB is cheaper with a 0.38% expense ratio, compared with 0.42% for IYR.
IYR has the higher dividend yield at 2.67%, compared with 1.33% for ITB.
ITB is categorized as Building & Construction, while IYR is REIT. ITB tracks Dow Jones U.S. Select Home Construction Index, while IYR tracks Dow Jones U.S. Real Estate Index. Their fees differ too: 0.38% for ITB and 0.42% for IYR.
IYR currently has the higher Sharpe Ratio (0.86 vs 0.30), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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