IYR vs. IYZ
IYR (iShares U.S. Real Estate ETF) and IYZ (iShares U.S. Telecommunications ETF) are both exchange-traded funds - IYR is a REIT fund tracking the Dow Jones U.S. Real Estate Index, while IYZ is a Communications Equities fund tracking the Dow Jones U.S. Select Telecommunications Index. Both are passively managed. Over the past 10 years, IYR returned 5.47%/yr vs 6.28%/yr for IYZ. A 0.53 correlation means they provide meaningful diversification when combined. Both charge a 0.42% expense ratio.
Performance
IYR vs. IYZ - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, IYR achieves a 6.81% return, which is significantly lower than IYZ's 32.03% return. Over the past 10 years, IYR has underperformed IYZ with an annualized return of 5.47%, while IYZ has yielded a comparatively higher 6.28% annualized 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%
IYZ
- 1D
- -2.96%
- 1M
- 4.94%
- YTD
- 32.03%
- 6M
- 38.73%
- 1Y
- 59.79%
- 3Y*
- 30.34%
- 5Y*
- 8.18%
- 10Y*
- 6.28%
IYR vs. IYZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYR iShares U.S. Real Estate ETF | 6.81% | 3.38% | 4.41% | 11.89% | -25.51% | 38.74% | -5.23% | 28.21% | -4.33% | 9.31% |
IYZ iShares U.S. Telecommunications ETF | 32.03% | 29.28% | 20.53% | 3.90% | -30.29% | 11.69% | 4.13% | 16.14% | -8.59% | -11.86% |
Correlation
The correlation between IYR and IYZ is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.33 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.48 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.58 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Jun 20, 2000 | 0.53 |
The correlation between IYR and IYZ shifts across timeframes, from 0.33 (1 year) to 0.58 (5 years), reflecting how their relationship changes across market environments.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
IYR vs. IYZ — Risk / Return Rank
IYR
IYZ
IYR vs. IYZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Real Estate ETF (IYR) and iShares U.S. Telecommunications ETF (IYZ). 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 | IYZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.71 | ||
| Sortino ratioReturn per unit of downside risk | -3.49 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.58 | -0.46 |
| Calmar ratioReturn relative to maximum drawdown | 0.99 | 9.54 | -8.55 |
| Martin ratioReturn relative to average drawdown | 3.10 | 32.08 | -28.98 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
Loading charts...
Sharpe Ratios by Period
| IYR | IYZ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.64 | 3.35 | -2.71 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.11 | 0.44 | -0.33 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.27 | 0.33 | -0.06 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.32 | 0.07 | +0.25 |
Drawdowns
IYR vs. IYZ - Drawdown Comparison
The maximum IYR drawdown since its inception was -74.13%, roughly equal to the maximum IYZ drawdown of -77.11%. Use the drawdown chart below to compare losses from any high point for IYR and IYZ.
Loading charts...
Drawdown Indicators
| IYR | IYZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -74.13% | -77.11% | +2.98% |
Max Drawdown (1Y)Largest decline over 1 year | -8.54% | -6.30% | -2.24% |
Max Drawdown (3Y)Largest decline over 3 years | -17.52% | -13.85% | -3.67% |
Max Drawdown (5Y)Largest decline over 5 years | -33.75% | -39.74% | +5.99% |
Max Drawdown (10Y)Largest decline over 10 years | -42.32% | -39.74% | -2.58% |
Current DrawdownCurrent decline from peak | -3.91% | -2.96% | -0.95% |
Average DrawdownAverage peak-to-trough decline | -12.91% | -40.14% | +27.23% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.73% | 1.87% | +0.86% |
Volatility
IYR vs. IYZ - Volatility Comparison
The current volatility for iShares U.S. Real Estate ETF (IYR) is 3.69%, while iShares U.S. Telecommunications ETF (IYZ) has a volatility of 7.44%. This indicates that IYR experiences smaller price fluctuations and is considered to be less risky than IYZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| IYR | IYZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.69% | 7.44% | -3.75% |
Volatility (6M)Calculated over the trailing 6-month period | 9.35% | 14.76% | -5.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.19% | 17.95% | -4.76% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.71% | 18.75% | -0.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.31% | 19.25% | +1.06% |
IYR vs. IYZ - Expense Ratio Comparison
Both IYR and IYZ have an expense ratio of 0.42%.
Dividends
IYR vs. IYZ - Dividend Comparison
IYR's dividend yield for the trailing twelve months is around 2.25%, more than IYZ's 1.50% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
IYZ iShares U.S. Telecommunications ETF | 1.50% | 2.04% | 1.94% | 2.27% | 2.55% | 2.51% | 2.60% | 2.36% | 2.15% | 3.54% | 2.27% | 1.98% |
Frequently Asked Questions
IYR and IYZ have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYZ has higher volatility (7.44%) compared to IYR (3.69%). In terms of maximum drawdown, IYR dropped -74.13% vs IYZ's -77.11%.
On 10-year performance, IYZ leads with 6.28% vs 5.47% for IYR. Both ETFs have the same 0.42% expense ratio. On volatility, IYR has been the lower-risk option at 3.69%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYZ has performed better with a 6.28% return vs 5.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IYR and IYZ have the same expense ratio: 0.42% per year.
IYR has the higher dividend yield at 2.25%, compared with 1.50% for IYZ.
IYR is categorized as REIT, while IYZ is Communications Equities. IYR tracks Dow Jones U.S. Real Estate Index, while IYZ tracks Dow Jones U.S. Select Telecommunications Index.
IYZ currently has the higher Sharpe Ratio (3.35 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.
Find the right allocation for IYR and IYZ
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer