IYR vs. REM
Compare and contrast key facts about iShares U.S. Real Estate ETF (IYR) and iShares Mortgage Real Estate ETF (REM).
IYR and REM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. IYR is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Real Estate Index. It was launched on Jun 12, 2000. REM is a passively managed fund by iShares that tracks the performance of the FTSE NAREIT All Mortgage Capped Index. It was launched on May 4, 2007. Both IYR and REM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: IYR or REM.
Key characteristics
| IYR | REM | |
|---|---|---|
| YTD Return | 11.16% | 3.04% |
| 1Y Return | 32.35% | 19.71% |
| 3Y Return (Ann) | -0.47% | -7.22% |
| 5Y Return (Ann) | 4.67% | -3.71% |
| 10Y Return (Ann) | 6.23% | 1.92% |
| Sharpe Ratio | 1.78 | 0.82 |
| Sortino Ratio | 2.54 | 1.22 |
| Omega Ratio | 1.32 | 1.15 |
| Calmar Ratio | 1.01 | 0.42 |
| Martin Ratio | 6.81 | 2.98 |
| Ulcer Index | 4.44% | 5.73% |
| Daily Std Dev | 17.01% | 20.68% |
| Max Drawdown | -74.13% | -74.72% |
| Current Drawdown | -7.36% | -28.54% |
Correlation
The correlation between IYR and REM is 0.68, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
IYR vs. REM - Performance Comparison
In the year-to-date period, IYR achieves a 11.16% return, which is significantly higher than REM's 3.04% return. Over the past 10 years, IYR has outperformed REM with an annualized return of 6.23%, while REM has yielded a comparatively lower 1.92% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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IYR vs. REM - Expense Ratio Comparison
IYR has a 0.42% expense ratio, which is lower than REM's 0.48% expense ratio.
Risk-Adjusted Performance
IYR vs. REM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Real Estate ETF (IYR) and iShares Mortgage Real Estate ETF (REM). 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.
Dividends
IYR vs. REM - Dividend Comparison
IYR's dividend yield for the trailing twelve months is around 2.37%, less than REM's 9.33% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYR iShares U.S. Real Estate ETF | 2.37% | 2.75% | 2.92% | 2.06% | 2.58% | 3.05% | 3.53% | 3.73% | 4.41% | 3.92% | 3.66% | 3.78% |
REM iShares Mortgage Real Estate ETF | 9.33% | 9.46% | 11.13% | 7.29% | 7.72% | 8.16% | 10.00% | 9.97% | 10.03% | 11.99% | 14.53% | 16.12% |
Drawdowns
IYR vs. REM - Drawdown Comparison
The maximum IYR drawdown since its inception was -74.13%, roughly equal to the maximum REM drawdown of -74.72%. Use the drawdown chart below to compare losses from any high point for IYR and REM. For additional features, visit the drawdowns tool.
Volatility
IYR vs. REM - Volatility Comparison
iShares U.S. Real Estate ETF (IYR) has a higher volatility of 5.61% compared to iShares Mortgage Real Estate ETF (REM) at 4.56%. This indicates that IYR's price experiences larger fluctuations and is considered to be riskier than REM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.