IYR vs. AVRE

Last updated Jun 4, 2026

IYR (iShares U.S. Real Estate ETF) and AVRE (Avantis Real Estate ETF) are both REIT funds. IYR is passively managed, while AVRE is actively managed. Over the past 3 years, IYR returned 8.68%/yr vs 8.26%/yr for AVRE. With a 0.97 correlation, they move nearly in lockstep. IYR charges 0.42%/yr vs 0.17%/yr for AVRE.

Performance

IYR vs. AVRE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Real Estate ETF (IYR) and Avantis Real Estate ETF (AVRE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IYR achieves a 6.81% return, which is significantly lower than AVRE's 7.23% return.

IYR

• 1D: 0.01%
• 1M: -1.60%
• YTD: 6.81%
• 6M: 5.67%
• 1Y: 8.44%
• 3Y*: 8.68%
• 5Y*: 2.02%
• 10Y*: 5.47%

AVRE

• 1D: -0.30%
• 1M: -1.25%
• YTD: 7.23%
• 6M: 6.93%
• 1Y: 9.59%
• 3Y*: 8.26%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

IYR vs. AVRE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
IYR iShares U.S. Real Estate ETF	6.81%	3.38%	4.41%	11.89%	-25.51%	14.60%
AVRE Avantis Real Estate ETF	7.23%	8.34%	0.54%	9.10%	-23.70%	13.16%

Correlation

The correlation between IYR and AVRE is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (All Time) Calculated using the full available price history since Oct 1, 2021	0.97

The correlation between IYR and AVRE has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

IYR vs. AVRE - Sectors Allocation Comparison

Sectors	IYR	AVRE
Real Estate	97.9%	99.3%
Basic Materials	1.3%	-
Communication Services	0.6%	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	0.1%
Healthcare	-	-
Industrials	-	-
Technology	-	-
Utilities	-	0.1%

Return for Risk

IYR vs. AVRE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IYR

IYR Risk / Return Rank: 20
IYR Sharpe Ratio Rank: 19
IYR Sortino Ratio Rank: 18
IYR Omega Ratio Rank: 18
IYR Calmar Ratio Rank: 21
IYR Martin Ratio Rank: 24

AVRE

AVRE Risk / Return Rank: 23
AVRE Sharpe Ratio Rank: 23
AVRE Sortino Ratio Rank: 22
AVRE Omega Ratio Rank: 22
AVRE Calmar Ratio Rank: 22
AVRE Martin Ratio Rank: 27

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IYR vs. AVRE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Real Estate ETF (IYR) and Avantis Real Estate ETF (AVRE). 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.

	IYR	AVRE	Difference
Sharpe ratio: Return per unit of total volatility	0.64	0.81	-0.17
Sortino ratio: Return per unit of downside risk	0.96	1.18	-0.22
Omega ratio: Gain probability vs. loss probability	1.12	1.15	-0.03
Calmar ratio: Return relative to maximum drawdown	0.99	1.03	-0.03
Martin ratio: Return relative to average drawdown	3.10	3.74	-0.64
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IYR vs. AVRE - Sharpe Ratio Comparison

The current IYR Sharpe Ratio is 0.64, which is comparable to the AVRE Sharpe Ratio of 0.81. The chart below compares the historical Sharpe Ratios of IYR and AVRE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	IYR	AVRE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.64	0.81	-0.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.11	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.27	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.13	+0.20

Drawdowns

IYR vs. AVRE - Drawdown Comparison

The maximum IYR drawdown since its inception was -74.13%, which is greater than AVRE's maximum drawdown of -32.52%. Use the drawdown chart below to compare losses from any high point for IYR and AVRE.

Drawdown Indicators

	IYR	AVRE	Difference
Max Drawdown Largest peak-to-trough decline	-74.13%	-32.52%	-41.61%
Max Drawdown (1Y) Largest decline over 1 year	-8.54%	-9.38%	+0.84%
Max Drawdown (3Y) Largest decline over 3 years	-17.52%	-17.34%	-0.18%
Max Drawdown (5Y) Largest decline over 5 years	-33.75%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-42.32%	—	—
Current Drawdown Current decline from peak	-3.91%	-3.04%	-0.87%
Average Drawdown Average peak-to-trough decline	-12.91%	-14.76%	+1.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.73%	2.57%	+0.16%

Volatility

IYR vs. AVRE - Volatility Comparison

iShares U.S. Real Estate ETF (IYR) has a higher volatility of 3.69% compared to Avantis Real Estate ETF (AVRE) at 3.45%. This indicates that IYR's price experiences larger fluctuations and is considered to be riskier than AVRE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYR	AVRE	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.69%	3.45%	+0.24%
Volatility (6M) Calculated over the trailing 6-month period	9.35%	8.96%	+0.39%
Volatility (1Y) Calculated over the trailing 1-year period	13.19%	11.90%	+1.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.71%	16.60%	+2.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.31%	16.60%	+3.71%

IYR vs. AVRE - Expense Ratio Comparison

IYR has a 0.42% expense ratio, which is higher than AVRE's 0.17% expense ratio.

Dividends

IYR vs. AVRE - Dividend Comparison

IYR's dividend yield for the trailing twelve months is around 2.25%, less than AVRE's 3.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVRE Avantis Real Estate ETF	3.51%	4.30%	3.99%	3.33%	3.78%	0.61%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
IYR iShares U.S. Real Estate ETF	2.25%	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

Can I hold both IYR and AVRE in my portfolio?

With a correlation of 0.95, IYR and AVRE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, IYR or AVRE?

IYR has higher volatility (3.69%) compared to AVRE (3.45%). In terms of maximum drawdown, IYR dropped -74.13% vs AVRE's -32.52%.

Which ETF is better, IYR or AVRE?

On 3-year performance, IYR leads with 8.68% vs 8.26% for AVRE. On fees, AVRE is cheaper at 0.17% per year. On volatility, AVRE has been the lower-risk option at 3.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYR or AVRE?

Over the 3-year period, IYR has performed better with a 8.68% return vs 8.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYR or AVRE?

AVRE is cheaper with a 0.17% expense ratio, compared with 0.42% for IYR.

Which ETF pays a higher dividend yield, IYR or AVRE?

AVRE has the higher dividend yield at 3.51%, compared with 2.25% for IYR.

What is the main difference between IYR and AVRE?

They also come from different issuers: iShares and Avantis. Their fees differ too: 0.42% for IYR and 0.17% for AVRE.

Which has better risk-adjusted returns?

AVRE currently has the higher Sharpe Ratio (0.81 vs 0.64), 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.