IYR vs. IYT
IYR (iShares U.S. Real Estate ETF) and IYT (iShares Transportation Average ETF) are both exchange-traded funds - IYR is a REIT fund tracking the Dow Jones U.S. Real Estate Index, while IYT is a Transportation Equities fund tracking the Dow Jones Transportation Average Index. Both are passively managed. Over the past 10 years, IYR returned 5.97%/yr vs 11.08%/yr for IYT. A 0.58 correlation means they provide meaningful diversification when combined. Both charge a 0.42% expense ratio.
Performance
IYR vs. IYT - Performance Comparison
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Returns By Period
In the year-to-date period, IYR achieves a 11.47% return, which is significantly lower than IYT's 16.53% return. Over the past 10 years, IYR has underperformed IYT with an annualized return of 5.97%, while IYT has yielded a comparatively higher 11.08% annualized return.
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%
IYT
- 1D
- 0.45%
- 1M
- 7.88%
- YTD
- 16.53%
- 6M
- 13.90%
- 1Y
- 34.06%
- 3Y*
- 14.84%
- 5Y*
- 6.47%
- 10Y*
- 11.08%
IYR vs. IYT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
IYT iShares Transportation Average ETF | 16.53% | 11.48% | 4.10% | 24.62% | -21.74% | 26.41% | 14.20% | 20.11% | -12.87% | 18.89% |
Correlation
The correlation between IYR and IYT is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.51 |
Correlation (All Time) Calculated using the full available price history since Oct 10, 2003 | 0.58 |
The correlation between IYR and IYT has been stable across timeframes, ranging from 0.50 to 0.59 - a consistent structural relationship.
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Return for Risk
IYR vs. IYT — Risk / Return Rank
IYR
IYT
IYR vs. IYT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Real Estate ETF (IYR) and iShares Transportation Average ETF (IYT). 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.
| IYR | IYT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.70 | ||
| Sortino ratioReturn per unit of downside risk | -0.95 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.27 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 1.34 | 2.63 | -1.29 |
| Martin ratioReturn relative to average drawdown | 4.19 | 8.56 | -4.38 |
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Drawdowns
IYR vs. IYT - Drawdown Comparison
The maximum IYR drawdown since its inception was -74.13%, which is greater than IYT's maximum drawdown of -60.39%. Use the drawdown chart below to compare losses from any high point for IYR and IYT.
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Drawdown Indicators
| IYR | IYT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -74.13% | -60.39% | -13.74% |
Max Drawdown (1Y)Largest decline over 1 year | -8.54% | -12.09% | +3.55% |
Max Drawdown (3Y)Largest decline over 3 years | -17.52% | -26.35% | +8.83% |
Max Drawdown (5Y)Largest decline over 5 years | -33.75% | -29.15% | -4.60% |
Max Drawdown (10Y)Largest decline over 10 years | -42.32% | -41.28% | -1.04% |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -12.89% | -9.30% | -3.59% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.73% | 3.71% | -0.98% |
Volatility
IYR vs. IYT - Volatility Comparison
The current volatility for iShares U.S. Real Estate ETF (IYR) is 4.80%, while iShares Transportation Average ETF (IYT) has a volatility of 6.45%. This indicates that IYR experiences smaller price fluctuations and is considered to be less risky than IYT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYR | IYT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.80% | 6.45% | -1.65% |
Volatility (6M)Calculated over the trailing 6-month period | 9.87% | 15.94% | -6.07% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.58% | 20.61% | -7.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.76% | 22.38% | -3.62% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.34% | 23.18% | -2.84% |
IYR vs. IYT - Expense Ratio Comparison
Both IYR and IYT have an expense ratio of 0.42%.
Dividends
IYR vs. IYT - Dividend Comparison
IYR's dividend yield for the trailing twelve months is around 2.15%, more than IYT's 0.93% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
IYT iShares Transportation Average ETF | 0.93% | 1.00% | 1.08% | 1.26% | 1.40% | 0.77% | 0.93% | 1.29% | 1.35% | 0.92% | 0.96% | 1.28% |
Frequently Asked Questions
IYR and IYT have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYT has higher volatility (6.45%) compared to IYR (4.80%). In terms of maximum drawdown, IYR dropped -74.13% vs IYT's -60.39%.
On 10-year performance, IYT leads with 11.08% 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, IYT has performed better with a 11.08% return vs 5.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IYR and IYT have the same expense ratio: 0.42% per year.
IYR has the higher dividend yield at 2.15%, compared with 0.93% for IYT.
IYR is categorized as REIT, while IYT is Transportation Equities. IYR tracks Dow Jones U.S. Real Estate Index, while IYT tracks Dow Jones Transportation Average Index.
IYT currently has the higher Sharpe Ratio (1.54 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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