IYR vs. PFFR

Last updated Jun 5, 2026

IYR (iShares U.S. Real Estate ETF) and PFFR (InfraCap REIT Preferred ETF) are both exchange-traded funds - IYR is a REIT fund tracking the Dow Jones U.S. Real Estate Index, while PFFR is a Preferred Stock/Convertible Bonds fund tracking the Indxx REIT Preferred Stock Index. Both are passively managed. Over the past 5 years, IYR returned 2.39%/yr vs 1.03%/yr for PFFR. At a 0.39 correlation, their price movements are largely independent. IYR charges 0.42%/yr vs 0.45%/yr for PFFR.

Performance

IYR vs. PFFR - Performance Comparison

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

Returns By Period

In the year-to-date period, IYR achieves a 8.72% return, which is significantly higher than PFFR's 1.09% return.

IYR

• 1D: 1.79%
• 1M: -0.15%
• YTD: 8.72%
• 6M: 7.83%
• 1Y: 10.09%
• 3Y*: 9.57%
• 5Y*: 2.39%
• 10Y*: 5.72%

PFFR

• 1D: 0.28%
• 1M: -0.76%
• YTD: 1.09%
• 6M: 1.70%
• 1Y: 7.55%
• 3Y*: 9.13%
• 5Y*: 1.03%
• 10Y*: —

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

IYR vs. PFFR - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYR iShares U.S. Real Estate ETF	8.72%	3.38%	4.41%	11.89%	-25.51%	38.74%	-5.23%	28.21%	-4.33%	8.25%
PFFR InfraCap REIT Preferred ETF	1.09%	5.36%	7.12%	21.04%	-23.90%	6.76%	0.19%	20.28%	-7.45%	7.60%

Correlation

The correlation between IYR and PFFR is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.36
Correlation (5Y) Calculated over the trailing 5-year period	0.39
Correlation (All Time) Calculated using the full available price history since Feb 9, 2017	0.39

The correlation between IYR and PFFR shifts across timeframes, from 0.29 (1 year) to 0.39 (5 years), reflecting how their relationship changes across market environments.

IYR vs. PFFR - Sectors Allocation Comparison

Sectors	IYR	PFFR
Real Estate	97.9%	84.9%
Basic Materials	1.3%	-
Communication Services	0.6%	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	5.3%
Healthcare	-	-
Industrials	-	-
Technology	-	-
Utilities	-	-

Return for Risk

IYR vs. PFFR — Risk / Return Rank

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

IYR

IYR Risk / Return Rank: 24
IYR Sharpe Ratio Rank: 23
IYR Sortino Ratio Rank: 22
IYR Omega Ratio Rank: 22
IYR Calmar Ratio Rank: 25
IYR Martin Ratio Rank: 27

PFFR

PFFR Risk / Return Rank: 26
PFFR Sharpe Ratio Rank: 28
PFFR Sortino Ratio Rank: 26
PFFR Omega Ratio Rank: 26
PFFR Calmar Ratio Rank: 25
PFFR Martin Ratio Rank: 22

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. PFFR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Real Estate ETF (IYR) and InfraCap REIT Preferred ETF (PFFR). 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	PFFR	Difference
Sharpe ratio: Return per unit of total volatility	0.76	0.96	-0.20
Sortino ratio: Return per unit of downside risk	1.12	1.40	-0.28
Omega ratio: Gain probability vs. loss probability	1.14	1.17	-0.03
Calmar ratio: Return relative to maximum drawdown	1.19	1.15	+0.03
Martin ratio: Return relative to average drawdown	3.70	2.70	+1.01
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. PFFR - Sharpe Ratio Comparison

The current IYR Sharpe Ratio is 0.76, which is comparable to the PFFR Sharpe Ratio of 0.96. The chart below compares the historical Sharpe Ratios of IYR and PFFR, 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	PFFR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.76	0.96	-0.20
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.13	0.10	+0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.28	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.33	0.16	+0.17

Drawdowns

IYR vs. PFFR - Drawdown Comparison

The maximum IYR drawdown since its inception was -74.13%, which is greater than PFFR's maximum drawdown of -53.02%. Use the drawdown chart below to compare losses from any high point for IYR and PFFR.

Drawdown Indicators

	IYR	PFFR	Difference
Max Drawdown Largest peak-to-trough decline	-74.13%	-53.02%	-21.11%
Max Drawdown (1Y) Largest decline over 1 year	-8.54%	-6.57%	-1.97%
Max Drawdown (3Y) Largest decline over 3 years	-17.52%	-11.16%	-6.36%
Max Drawdown (5Y) Largest decline over 5 years	-33.75%	-29.80%	-3.95%
Max Drawdown (10Y) Largest decline over 10 years	-42.32%	—	—
Current Drawdown Current decline from peak	-2.19%	-2.78%	+0.59%
Average Drawdown Average peak-to-trough decline	-12.91%	-7.00%	-5.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.73%	2.80%	-0.07%

Volatility

IYR vs. PFFR - Volatility Comparison

iShares U.S. Real Estate ETF (IYR) has a higher volatility of 4.12% compared to InfraCap REIT Preferred ETF (PFFR) at 2.81%. This indicates that IYR's price experiences larger fluctuations and is considered to be riskier than PFFR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYR	PFFR	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.12%	2.81%	+1.31%
Volatility (6M) Calculated over the trailing 6-month period	9.50%	6.14%	+3.36%
Volatility (1Y) Calculated over the trailing 1-year period	13.30%	7.87%	+5.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.73%	10.47%	+8.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.32%	20.53%	-0.21%

IYR vs. PFFR - Expense Ratio Comparison

IYR has a 0.42% expense ratio, which is lower than PFFR's 0.45% expense ratio.

Dividends

IYR vs. PFFR - Dividend Comparison

IYR's dividend yield for the trailing twelve months is around 2.21%, less than PFFR's 8.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYR iShares U.S. Real Estate ETF	2.21%	2.48%	2.57%	2.75%	2.92%	2.06%	2.58%	3.05%	3.53%	3.73%	4.41%	3.92%
PFFR InfraCap REIT Preferred ETF	8.27%	7.99%	7.78%	7.72%	8.60%	6.08%	6.11%	5.77%	6.48%	6.59%	0.00%	0.00%

Frequently Asked Questions

Can I hold both IYR and PFFR in my portfolio?

IYR and PFFR have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYR or PFFR?

IYR has higher volatility (4.12%) compared to PFFR (2.81%). In terms of maximum drawdown, IYR dropped -74.13% vs PFFR's -53.02%.

Which ETF is better, IYR or PFFR?

On 5-year performance, IYR leads with 2.39% vs 1.03% for PFFR. On fees, IYR is cheaper at 0.42% per year. On volatility, PFFR has been the lower-risk option at 2.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYR or PFFR?

Over the 5-year period, IYR has performed better with a 2.39% return vs 1.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYR or PFFR?

IYR is cheaper with a 0.42% expense ratio, compared with 0.45% for PFFR.

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

PFFR has the higher dividend yield at 8.27%, compared with 2.21% for IYR.

What is the main difference between IYR and PFFR?

IYR is categorized as REIT, while PFFR is Preferred Stock/Convertible Bonds. IYR tracks Dow Jones U.S. Real Estate Index, while PFFR tracks Indxx REIT Preferred Stock Index. They also come from different issuers: iShares and Virtus Investment Partners. Their fees differ too: 0.42% for IYR and 0.45% for PFFR.

Which has better risk-adjusted returns?

PFFR currently has the higher Sharpe Ratio (0.96 vs 0.76), 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.