IYF vs. IYR
IYF (iShares U.S. Financials ETF) and IYR (iShares U.S. Real Estate ETF) are both exchange-traded funds - IYF is a Financials Equities fund tracking the Dow Jones U.S. Financials 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, IYF returned 13.53%/yr vs 5.97%/yr for IYR. A 0.66 correlation means they provide meaningful diversification when combined. Both charge a 0.42% expense ratio.
Performance
IYF vs. IYR - Performance Comparison
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Returns By Period
In the year-to-date period, IYF achieves a -0.19% return, which is significantly lower than IYR's 11.47% return. Over the past 10 years, IYF has outperformed IYR with an annualized return of 13.53%, while IYR has yielded a comparatively lower 5.97% annualized return.
IYF
- 1D
- 1.38%
- 1M
- 4.53%
- YTD
- -0.19%
- 6M
- -0.21%
- 1Y
- 13.73%
- 3Y*
- 21.71%
- 5Y*
- 10.87%
- 10Y*
- 13.53%
IYR
- 1D
- 0.89%
- 1M
- 3.00%
- YTD
- 11.47%
- 6M
- 11.46%
- 1Y
- 12.40%
- 3Y*
- 9.71%
- 5Y*
- 2.47%
- 10Y*
- 5.97%
IYF vs. IYR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYF iShares U.S. Financials ETF | -0.19% | 18.25% | 31.30% | 15.32% | -11.33% | 31.60% | -1.00% | 31.86% | -9.39% | 19.58% |
IYR iShares U.S. Real Estate ETF | 11.47% | 3.38% | 4.41% | 11.89% | -25.51% | 38.74% | -5.23% | 28.21% | -4.33% | 9.31% |
Correlation
The correlation between IYF and IYR is 0.51, 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 | 0.51 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.59 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.63 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2000 | 0.66 |
The correlation between IYF and IYR shifts across timeframes, from 0.51 (1 year) to 0.66 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
IYF vs. IYR — Risk / Return Rank
IYF
IYR
IYF vs. IYR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Financials ETF (IYF) 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.
| IYF | IYR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.01 | ||
| Sortino ratioReturn per unit of downside risk | -0.03 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.15 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 0.88 | 1.34 | -0.46 |
| Martin ratioReturn relative to average drawdown | 2.38 | 4.19 | -1.81 |
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Drawdowns
IYF vs. IYR - Drawdown Comparison
The maximum IYF drawdown since its inception was -79.09%, which is greater than IYR's maximum drawdown of -74.13%. Use the drawdown chart below to compare losses from any high point for IYF and IYR.
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Drawdown Indicators
| IYF | IYR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -79.09% | -74.13% | -4.96% |
Max Drawdown (1Y)Largest decline over 1 year | -13.88% | -8.54% | -5.34% |
Max Drawdown (3Y)Largest decline over 3 years | -16.60% | -17.52% | +0.92% |
Max Drawdown (5Y)Largest decline over 5 years | -25.06% | -33.75% | +8.69% |
Max Drawdown (10Y)Largest decline over 10 years | -42.57% | -42.32% | -0.25% |
Current DrawdownCurrent decline from peak | -3.25% | 0.00% | -3.25% |
Average DrawdownAverage peak-to-trough decline | -17.59% | -12.89% | -4.70% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.13% | 2.73% | +2.40% |
Volatility
IYF vs. IYR - Volatility Comparison
The current volatility for iShares U.S. Financials ETF (IYF) is 4.27%, while iShares U.S. Real Estate ETF (IYR) has a volatility of 4.80%. This indicates that IYF experiences smaller price fluctuations and is considered to be less risky 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
| IYF | IYR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.27% | 4.80% | -0.53% |
Volatility (6M)Calculated over the trailing 6-month period | 11.12% | 9.87% | +1.25% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.58% | 13.58% | +1.00% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.04% | 18.76% | +0.28% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.90% | 20.34% | +0.56% |
IYF vs. IYR - Expense Ratio Comparison
Both IYF and IYR have an expense ratio of 0.42%.
Dividends
IYF vs. IYR - Dividend Comparison
IYF's dividend yield for the trailing twelve months is around 1.49%, less than IYR's 2.15% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYF iShares U.S. Financials ETF | 1.49% | 1.32% | 1.29% | 1.67% | 1.86% | 1.27% | 1.72% | 1.64% | 1.90% | 1.46% | 1.67% | 1.66% |
IYR iShares U.S. Real Estate ETF | 2.15% | 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
IYF and IYR have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYR has higher volatility (4.80%) compared to IYF (4.27%). In terms of maximum drawdown, IYF dropped -79.09% vs IYR's -74.13%.
On 10-year performance, IYF leads with 13.53% vs 5.97% for IYR. Both ETFs have the same 0.42% expense ratio. On volatility, IYF has been the lower-risk option at 4.27%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYF has performed better with a 13.53% return vs 5.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IYF and IYR have the same expense ratio: 0.42% per year.
IYR has the higher dividend yield at 2.15%, compared with 1.49% for IYF.
IYF is categorized as Financials Equities, while IYR is REIT. IYF tracks Dow Jones U.S. Financials Index, while IYR tracks Dow Jones U.S. Real Estate Index.
IYR currently has the higher Sharpe Ratio (0.84 vs 0.84), 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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