IYZ vs. IYR
IYZ (iShares U.S. Telecommunications ETF) and IYR (iShares U.S. Real Estate ETF) are both exchange-traded funds - IYZ is a Communications Equities fund tracking the Dow Jones U.S. Select Telecommunications Index, while IYR is a REIT fund tracking the Dow Jones U.S. Real Estate Capped Index. Both are passively managed. Over the past 10 years, IYZ returned 5.30%/yr vs 5.61%/yr for IYR. A 0.52 correlation means they provide meaningful diversification when combined. IYZ charges 0.42%/yr vs 0.38%/yr for IYR.
Performance
IYZ vs. IYR - Performance Comparison
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Returns By Period
In the year-to-date period, IYZ achieves a 24.39% return, which is significantly higher than IYR's 9.06% return. Over the past 10 years, IYZ has underperformed IYR with an annualized return of 5.30%, while IYR has yielded a comparatively higher 5.61% annualized return.
IYZ
- 1D
- 0.62%
- 1M
- -6.02%
- YTD
- 24.39%
- 6M
- 23.91%
- 1Y
- 51.48%
- 3Y*
- 28.45%
- 5Y*
- 7.11%
- 10Y*
- 5.30%
IYR
- 1D
- 1.15%
- 1M
- -0.59%
- YTD
- 9.06%
- 6M
- 9.39%
- 1Y
- 9.98%
- 3Y*
- 10.10%
- 5Y*
- 2.37%
- 10Y*
- 5.61%
IYZ vs. IYR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYZ iShares U.S. Telecommunications ETF | 24.39% | 29.28% | 20.53% | 3.90% | -30.29% | 11.69% | 4.13% | 16.14% | -8.59% | -11.86% |
IYR iShares U.S. Real Estate ETF | 9.06% | 3.38% | 4.41% | 11.89% | -25.51% | 38.74% | -5.23% | 28.21% | -4.33% | 9.31% |
Correlation
The correlation between IYZ and IYR 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 | 0.46 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.57 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2000 | 0.52 |
Over the past year, the correlation between IYZ and IYR has dropped to 0.29 - well below their long-term average of 0.52, suggesting their price drivers have been diverging.
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Return for Risk
IYZ vs. IYR — Risk / Return Rank
IYZ
IYR
IYZ vs. IYR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Telecommunications ETF (IYZ) and iShares U.S. Real Estate ETF (IYR). 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.
| IYZ | IYR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.04 | ||
| Sortino ratioReturn per unit of downside risk | +2.58 | ||
| Omega ratioGain probability vs. loss probability | 1.48 | 1.13 | +0.35 |
| Calmar ratioReturn relative to maximum drawdown | 5.66 | 1.17 | +4.48 |
| Martin ratioReturn relative to average drawdown | 21.21 | 3.64 | +17.57 |
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Drawdowns
IYZ vs. IYR - Drawdown Comparison
The maximum IYZ drawdown since its inception was -77.11%, roughly equal to the maximum IYR drawdown of -74.13%. Use the drawdown chart below to compare losses from any high point for IYZ and IYR.
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Drawdown Indicators
| IYZ | IYR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -77.11% | -74.13% | -2.98% |
Max Drawdown (1Y)Largest decline over 1 year | -9.15% | -8.54% | -0.61% |
Max Drawdown (3Y)Largest decline over 3 years | -13.85% | -17.52% | +3.67% |
Max Drawdown (5Y)Largest decline over 5 years | -39.74% | -33.75% | -5.99% |
Max Drawdown (10Y)Largest decline over 10 years | -39.74% | -42.32% | +2.58% |
Current DrawdownCurrent decline from peak | -8.58% | -2.17% | -6.41% |
Average DrawdownAverage peak-to-trough decline | -40.07% | -12.89% | -27.18% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.43% | 2.75% | -0.32% |
Volatility
IYZ vs. IYR - Volatility Comparison
iShares U.S. Telecommunications ETF (IYZ) has a higher volatility of 8.28% compared to iShares U.S. Real Estate ETF (IYR) at 5.22%. This indicates that IYZ's price experiences larger fluctuations and is considered to be riskier than IYR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYZ | IYR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.28% | 5.22% | +3.06% |
Volatility (6M)Calculated over the trailing 6-month period | 15.56% | 10.28% | +5.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.80% | 13.90% | +4.90% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.90% | 18.77% | +0.13% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.31% | 20.37% | -1.06% |
IYZ vs. IYR - Expense Ratio Comparison
IYZ has a 0.42% expense ratio, which is higher than IYR's 0.38% expense ratio.
Dividends
IYZ vs. IYR - Dividend Comparison
IYZ's dividend yield for the trailing twelve months is around 1.68%, less than IYR's 2.23% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYR iShares U.S. Real Estate ETF | 2.23% | 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 | 1.68% | 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
IYZ and IYR 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.
IYZ has higher volatility (8.28%) compared to IYR (5.22%). In terms of maximum drawdown, IYZ dropped -77.11% vs IYR's -74.13%.
On 10-year performance, IYR leads with 5.61% vs 5.30% for IYZ. On fees, IYR is cheaper at 0.38% per year. On volatility, IYR has been the lower-risk option at 5.22%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYR has performed better with a 5.61% return vs 5.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IYR is cheaper with a 0.38% expense ratio, compared with 0.42% for IYZ.
IYR has the higher dividend yield at 2.23%, compared with 1.68% for IYZ.
IYZ is categorized as Communications Equities, while IYR is REIT. IYZ tracks Dow Jones U.S. Select Telecommunications Index, while IYR tracks Dow Jones U.S. Real Estate Capped Index. Their fees differ too: 0.42% for IYZ and 0.38% for IYR.
IYZ currently has the higher Sharpe Ratio (2.76 vs 0.72), 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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