IYR vs. VDE
IYR (iShares U.S. Real Estate ETF) and VDE (Vanguard Energy ETF) are both exchange-traded funds - IYR is a REIT fund tracking the Dow Jones U.S. Real Estate Index, while VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index. Both are passively managed. Over the past 10 years, IYR returned 5.97%/yr vs 9.39%/yr for VDE. At a 0.39 correlation, their price movements are largely independent. IYR charges 0.42%/yr vs 0.09%/yr for VDE.
Performance
IYR vs. VDE - 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 VDE's 29.66% return. Over the past 10 years, IYR has underperformed VDE with an annualized return of 5.97%, while VDE has yielded a comparatively higher 9.39% 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%
VDE
- 1D
- 0.77%
- 1M
- -1.49%
- YTD
- 29.66%
- 6M
- 28.33%
- 1Y
- 35.15%
- 3Y*
- 16.71%
- 5Y*
- 20.05%
- 10Y*
- 9.39%
IYR vs. VDE - 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% |
VDE Vanguard Energy ETF | 29.66% | 7.11% | 6.75% | 0.03% | 62.89% | 56.31% | -33.02% | 9.28% | -19.95% | -2.50% |
Correlation
The correlation between IYR and VDE is 0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.06 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.22 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.28 |
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004 | 0.39 |
Over the past year, the correlation between IYR and VDE has dropped to 0.06 - well below their long-term average of 0.39, suggesting their price drivers have been diverging.
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Return for Risk
IYR vs. VDE — Risk / Return Rank
IYR
VDE
IYR vs. VDE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Real Estate ETF (IYR) and Vanguard Energy ETF (VDE). 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 | VDE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.00 | ||
| Sortino ratioReturn per unit of downside risk | -1.19 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.30 | -0.15 |
| Calmar ratioReturn relative to maximum drawdown | 1.34 | 3.20 | -1.86 |
| Martin ratioReturn relative to average drawdown | 4.19 | 8.95 | -4.76 |
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Drawdowns
IYR vs. VDE - Drawdown Comparison
The maximum IYR drawdown since its inception was -74.13%, roughly equal to the maximum VDE drawdown of -74.20%. Use the drawdown chart below to compare losses from any high point for IYR and VDE.
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Drawdown Indicators
| IYR | VDE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -74.13% | -74.20% | +0.07% |
Max Drawdown (1Y)Largest decline over 1 year | -8.54% | -11.80% | +3.26% |
Max Drawdown (3Y)Largest decline over 3 years | -17.52% | -21.41% | +3.89% |
Max Drawdown (5Y)Largest decline over 5 years | -33.75% | -26.58% | -7.17% |
Max Drawdown (10Y)Largest decline over 10 years | -42.32% | -69.29% | +26.97% |
Current DrawdownCurrent decline from peak | 0.00% | -8.26% | +8.26% |
Average DrawdownAverage peak-to-trough decline | -12.89% | -19.95% | +7.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.73% | 4.21% | -1.48% |
Volatility
IYR vs. VDE - Volatility Comparison
The current volatility for iShares U.S. Real Estate ETF (IYR) is 4.80%, while Vanguard Energy ETF (VDE) has a volatility of 7.15%. This indicates that IYR experiences smaller price fluctuations and is considered to be less risky than VDE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYR | VDE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.80% | 7.15% | -2.35% |
Volatility (6M)Calculated over the trailing 6-month period | 9.87% | 16.59% | -6.72% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.58% | 20.46% | -6.88% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.76% | 26.45% | -7.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.34% | 29.93% | -9.59% |
IYR vs. VDE - Expense Ratio Comparison
IYR has a 0.42% expense ratio, which is higher than VDE's 0.09% expense ratio.
Dividends
IYR vs. VDE - Dividend Comparison
IYR's dividend yield for the trailing twelve months is around 2.15%, less than VDE's 2.42% 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% |
VDE Vanguard Energy ETF | 2.42% | 3.11% | 3.23% | 3.34% | 3.65% | 4.13% | 4.76% | 3.42% | 3.35% | 2.90% | 2.31% | 3.17% |
Frequently Asked Questions
IYR and VDE have a correlation of 0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VDE has higher volatility (7.15%) compared to IYR (4.80%). In terms of maximum drawdown, IYR dropped -74.13% vs VDE's -74.20%.
On 10-year performance, VDE leads with 9.39% vs 5.97% for IYR. On fees, VDE is cheaper at 0.09% per year. 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, VDE has performed better with a 9.39% return vs 5.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VDE is cheaper with a 0.09% expense ratio, compared with 0.42% for IYR.
VDE has the higher dividend yield at 2.42%, compared with 2.15% for IYR.
IYR is categorized as REIT, while VDE is Energy Equities. IYR tracks Dow Jones U.S. Real Estate Index, while VDE tracks MSCI US Investable Market Energy 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.42% for IYR and 0.09% for VDE.
VDE currently has the higher Sharpe Ratio (1.85 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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