IYM vs. IYR
IYM (iShares U.S. Basic Materials ETF) and IYR (iShares U.S. Real Estate ETF) are both exchange-traded funds - IYM is a Materials fund tracking the Dow Jones U.S. Basic Materials 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, IYM returned 11.23%/yr vs 5.97%/yr for IYR. A 0.53 correlation means they provide meaningful diversification when combined. Both charge a 0.42% expense ratio.
Performance
IYM vs. IYR - Performance Comparison
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Returns By Period
In the year-to-date period, IYM achieves a 22.39% return, which is significantly higher than IYR's 11.47% return. Over the past 10 years, IYM has outperformed IYR with an annualized return of 11.23%, while IYR has yielded a comparatively lower 5.97% annualized return.
IYM
- 1D
- 1.70%
- 1M
- 1.07%
- YTD
- 22.39%
- 6M
- 23.93%
- 1Y
- 37.90%
- 3Y*
- 14.64%
- 5Y*
- 8.31%
- 10Y*
- 11.23%
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%
IYM vs. IYR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYM iShares U.S. Basic Materials ETF | 22.39% | 20.41% | -4.54% | 12.83% | -9.15% | 25.62% | 17.87% | 19.22% | -16.63% | 24.83% |
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 IYM and IYR is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.46 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.58 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.51 |
Correlation (All Time) Calculated using the full available price history since Jun 20, 2000 | 0.53 |
The correlation between IYM and IYR shifts across timeframes, from 0.46 (1 year) to 0.58 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
IYM vs. IYR — Risk / Return Rank
IYM
IYR
IYM vs. IYR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Basic Materials ETF (IYM) 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.
| IYM | IYR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.06 | ||
| Sortino ratioReturn per unit of downside risk | +1.31 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.15 | +0.17 |
| Calmar ratioReturn relative to maximum drawdown | 2.74 | 1.34 | +1.39 |
| Martin ratioReturn relative to average drawdown | 10.29 | 4.19 | +6.10 |
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Drawdowns
IYM vs. IYR - Drawdown Comparison
The maximum IYM drawdown since its inception was -67.78%, smaller than the maximum IYR drawdown of -74.13%. Use the drawdown chart below to compare losses from any high point for IYM and IYR.
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Drawdown Indicators
| IYM | IYR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -67.78% | -74.13% | +6.35% |
Max Drawdown (1Y)Largest decline over 1 year | -13.61% | -8.54% | -5.07% |
Max Drawdown (3Y)Largest decline over 3 years | -23.62% | -17.52% | -6.10% |
Max Drawdown (5Y)Largest decline over 5 years | -29.94% | -33.75% | +3.81% |
Max Drawdown (10Y)Largest decline over 10 years | -42.76% | -42.32% | -0.44% |
Current DrawdownCurrent decline from peak | -0.61% | 0.00% | -0.61% |
Average DrawdownAverage peak-to-trough decline | -11.45% | -12.89% | +1.44% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.61% | 2.73% | +0.88% |
Volatility
IYM vs. IYR - Volatility Comparison
iShares U.S. Basic Materials ETF (IYM) has a higher volatility of 8.10% compared to iShares U.S. Real Estate ETF (IYR) at 4.80%. This indicates that IYM'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
| IYM | IYR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.10% | 4.80% | +3.30% |
Volatility (6M)Calculated over the trailing 6-month period | 15.79% | 9.87% | +5.92% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.55% | 13.58% | +5.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 20.53% | 18.76% | +1.77% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.77% | 20.34% | +1.43% |
IYM vs. IYR - Expense Ratio Comparison
Both IYM and IYR have an expense ratio of 0.42%.
Dividends
IYM vs. IYR - Dividend Comparison
IYM's dividend yield for the trailing twelve months is around 1.23%, less than IYR's 2.15% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYM iShares U.S. Basic Materials ETF | 1.23% | 1.51% | 1.65% | 1.77% | 2.14% | 1.48% | 1.39% | 2.08% | 1.68% | 1.43% | 1.47% | 2.04% |
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
IYM and IYR have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYM has higher volatility (8.10%) compared to IYR (4.80%). In terms of maximum drawdown, IYM dropped -67.78% vs IYR's -74.13%.
On 10-year performance, IYM leads with 11.23% vs 5.97% for IYR. Both ETFs have the same 0.42% expense ratio. On volatility, IYR has been the lower-risk option at 4.80%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYM has performed better with a 11.23% return vs 5.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IYM and IYR have the same expense ratio: 0.42% per year.
IYR has the higher dividend yield at 2.15%, compared with 1.23% for IYM.
IYM is categorized as Materials, while IYR is REIT. IYM tracks Dow Jones U.S. Basic Materials Index, while IYR tracks Dow Jones U.S. Real Estate Index.
IYM currently has the higher Sharpe Ratio (1.90 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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