IYR vs. VNQ
Compare and contrast key facts about iShares U.S. Real Estate ETF (IYR) and Vanguard Real Estate ETF (VNQ).
IYR and VNQ 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. VNQ is a passively managed fund by Vanguard that tracks the performance of the MSCI US REIT Index. It was launched on Sep 23, 2004. Both IYR and VNQ 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 VNQ.
Key characteristics
| IYR | VNQ | |
|---|---|---|
| YTD Return | 9.68% | 10.24% |
| 1Y Return | 23.72% | 24.63% |
| 3Y Return (Ann) | -0.85% | -0.98% |
| 5Y Return (Ann) | 4.05% | 4.31% |
| 10Y Return (Ann) | 6.17% | 6.08% |
| Sharpe Ratio | 1.79 | 1.85 |
| Sortino Ratio | 2.55 | 2.65 |
| Omega Ratio | 1.32 | 1.33 |
| Calmar Ratio | 1.16 | 1.17 |
| Martin Ratio | 6.80 | 7.06 |
| Ulcer Index | 4.47% | 4.47% |
| Daily Std Dev | 16.97% | 17.09% |
| Max Drawdown | -74.13% | -73.07% |
| Current Drawdown | -8.59% | -9.06% |
Correlation
The correlation between IYR and VNQ is 0.98, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
IYR vs. VNQ - Performance Comparison
In the year-to-date period, IYR achieves a 9.68% return, which is significantly lower than VNQ's 10.24% return. Both investments have delivered pretty close results over the past 10 years, with IYR having a 6.17% annualized return and VNQ not far behind at 6.08%. 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. VNQ - Expense Ratio Comparison
IYR has a 0.42% expense ratio, which is higher than VNQ's 0.12% expense ratio.
Risk-Adjusted Performance
IYR vs. VNQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Real Estate ETF (IYR) and Vanguard Real Estate ETF (VNQ). 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. VNQ - Dividend Comparison
IYR's dividend yield for the trailing twelve months is around 2.40%, less than VNQ's 3.85% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYR iShares U.S. Real Estate ETF | 2.40% | 2.75% | 2.92% | 2.06% | 2.58% | 3.05% | 3.53% | 3.73% | 4.41% | 3.92% | 3.66% | 3.78% |
VNQ Vanguard Real Estate ETF | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% | 4.32% |
Drawdowns
IYR vs. VNQ - Drawdown Comparison
The maximum IYR drawdown since its inception was -74.13%, roughly equal to the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for IYR and VNQ. For additional features, visit the drawdowns tool.
Volatility
IYR vs. VNQ - Volatility Comparison
iShares U.S. Real Estate ETF (IYR) has a higher volatility of 5.58% compared to Vanguard Real Estate ETF (VNQ) at 5.25%. This indicates that IYR's price experiences larger fluctuations and is considered to be riskier than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.