IYR vs. FRI

Last updated Jun 3, 2026

IYR (iShares U.S. Real Estate ETF) and FRI (First Trust S&P REIT Index Fund) are both REIT funds - IYR tracks the Dow Jones U.S. Real Estate Index while FRI tracks the S&P United States REIT. Both are passively managed. Over the past 10 years, IYR returned 5.47%/yr vs 5.60%/yr for FRI. Their correlation of 0.92 suggests significant overlap in exposure. IYR charges 0.42%/yr vs 0.50%/yr for FRI.

Performance

IYR vs. FRI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Real Estate ETF (IYR) and First Trust S&P REIT Index Fund (FRI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IYR achieves a 6.80% return, which is significantly lower than FRI's 11.66% return. Both investments have delivered pretty close results over the past 10 years, with IYR having a 5.47% annualized return and FRI not far ahead at 5.60%.

IYR

• 1D: 0.39%
• 1M: -2.32%
• YTD: 6.80%
• 6M: 5.97%
• 1Y: 8.22%
• 3Y*: 8.68%
• 5Y*: 2.02%
• 10Y*: 5.47%

FRI

• 1D: 0.38%
• 1M: -1.40%
• YTD: 11.66%
• 6M: 10.48%
• 1Y: 14.05%
• 3Y*: 11.01%
• 5Y*: 4.35%
• 10Y*: 5.60%

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

IYR vs. FRI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYR iShares U.S. Real Estate ETF	6.80%	3.38%	4.41%	11.89%	-25.51%	38.74%	-5.23%	28.21%	-4.33%	9.31%
FRI First Trust S&P REIT Index Fund	11.66%	2.80%	7.84%	13.33%	-24.66%	42.55%	-7.90%	23.67%	-4.28%	3.86%

Correlation

The correlation between IYR and FRI 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	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.92

The correlation between IYR and FRI has been stable across timeframes, ranging from 0.92 to 0.98 - a consistent structural relationship.

IYR vs. FRI - Sectors Allocation Comparison

Sectors	IYR	FRI
Real Estate	97.9%	96.2%
Basic Materials	1.3%	-
Communication Services	0.6%	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	2.3%
Healthcare	-	-
Industrials	-	-
Technology	-	-
Utilities	-	0.8%

Return for Risk

IYR vs. FRI — 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: 23

FRI

FRI Risk / Return Rank: 32
FRI Sharpe Ratio Rank: 30
FRI Sortino Ratio Rank: 28
FRI Omega Ratio Rank: 28
FRI Calmar Ratio Rank: 38
FRI Martin Ratio Rank: 38

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. FRI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Real Estate ETF (IYR) and First Trust S&P REIT Index Fund (FRI). 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	FRI	Difference
Sharpe ratio Return per unit of total volatility	0.63	1.08	-0.46
Sortino ratio Return per unit of downside risk	0.93	1.52	-0.59
Omega ratio Gain probability vs. loss probability	1.12	1.19	-0.08
Calmar ratio Return relative to maximum drawdown	0.97	1.88	-0.91
Martin ratio Return relative to average drawdown	3.04	6.00	-2.96
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. FRI - Sharpe Ratio Comparison

The current IYR Sharpe Ratio is 0.63, which is lower than the FRI Sharpe Ratio of 1.08. The chart below compares the historical Sharpe Ratios of IYR and FRI, 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	FRI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.63	1.08	-0.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.11	0.23	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.27	0.27	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	0.18	+0.14

Drawdowns

IYR vs. FRI - Drawdown Comparison

The maximum IYR drawdown since its inception was -74.13%, roughly equal to the maximum FRI drawdown of -71.95%. Use the drawdown chart below to compare losses from any high point for IYR and FRI.

Drawdown Indicators

	IYR	FRI	Difference
Max Drawdown Largest peak-to-trough decline	-74.13%	-71.95%	-2.18%
Max Drawdown (1Y) Largest decline over 1 year	-8.54%	-7.57%	-0.97%
Max Drawdown (3Y) Largest decline over 3 years	-17.52%	-18.90%	+1.38%
Max Drawdown (5Y) Largest decline over 5 years	-33.75%	-31.21%	-2.54%
Max Drawdown (10Y) Largest decline over 10 years	-42.32%	-44.16%	+1.84%
Current Drawdown Current decline from peak	-3.92%	-3.44%	-0.48%
Average Drawdown Average peak-to-trough decline	-12.91%	-13.70%	+0.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.72%	2.37%	+0.35%

Volatility

IYR vs. FRI - Volatility Comparison

The current volatility for iShares U.S. Real Estate ETF (IYR) is 3.75%, while First Trust S&P REIT Index Fund (FRI) has a volatility of 3.99%. This indicates that IYR experiences smaller price fluctuations and is considered to be less risky than FRI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYR	FRI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.75%	3.99%	-0.24%
Volatility (6M) Calculated over the trailing 6-month period	9.43%	9.21%	+0.22%
Volatility (1Y) Calculated over the trailing 1-year period	13.19%	13.05%	+0.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.71%	18.65%	+0.06%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.32%	21.06%	-0.74%

IYR vs. FRI - Expense Ratio Comparison

IYR has a 0.42% expense ratio, which is lower than FRI's 0.50% expense ratio.

Dividends

IYR vs. FRI - Dividend Comparison

IYR's dividend yield for the trailing twelve months is around 2.25%, less than FRI's 2.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FRI First Trust S&P REIT Index Fund	2.60%	2.99%	3.33%	3.24%	2.52%	1.44%	3.08%	2.28%	3.21%	2.82%	3.27%	2.66%
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 FRI in my portfolio?

With a correlation of 0.95, IYR and FRI 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 FRI?

FRI has higher volatility (3.99%) compared to IYR (3.75%). In terms of maximum drawdown, IYR dropped -74.13% vs FRI's -71.95%.

Which ETF is better, IYR or FRI?

On 10-year performance, FRI leads with 5.60% vs 5.47% for IYR. On fees, IYR is cheaper at 0.42% per year. On volatility, IYR has been the lower-risk option at 3.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYR or FRI?

Over the 10-year period, FRI has performed better with a 5.60% return vs 5.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYR or FRI?

IYR is cheaper with a 0.42% expense ratio, compared with 0.50% for FRI.

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

FRI has the higher dividend yield at 2.60%, compared with 2.25% for IYR.

What is the main difference between IYR and FRI?

IYR tracks Dow Jones U.S. Real Estate Index, while FRI tracks S&P United States REIT. They also come from different issuers: iShares and First Trust. Their fees differ too: 0.42% for IYR and 0.50% for FRI.

Which has better risk-adjusted returns?

FRI currently has the higher Sharpe Ratio (1.08 vs 0.63), 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.