OUSM vs. REZ

Last updated Jun 13, 2026

OUSM (OShares U.S. Small-Cap Quality Dividend ETF) and REZ (iShares Residential Real Estate ETF) are both exchange-traded funds - OUSM is a Small Cap Blend Equities fund tracking the O'Shares US Small-Cap Quality Dividend Index, while REZ is a REIT fund tracking the FTSE NAREIT All Residential Capped Index. Both are passively managed. Over the past 5 years, OUSM returned 7.57%/yr vs 4.39%/yr for REZ. A 0.51 correlation means they provide meaningful diversification when combined. Both charge a 0.48% expense ratio.

Performance

OUSM vs. REZ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in OShares U.S. Small-Cap Quality Dividend ETF (OUSM) and iShares Residential Real Estate ETF (REZ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, OUSM achieves a 8.25% return, which is significantly lower than REZ's 12.29% return.

OUSM

• 1D: 0.94%
• 1M: 2.04%
• YTD: 8.25%
• 6M: 6.15%
• 1Y: 11.79%
• 3Y*: 11.20%
• 5Y*: 7.57%
• 10Y*: —

REZ

• 1D: 0.89%
• 1M: 0.88%
• YTD: 12.29%
• 6M: 12.93%
• 1Y: 13.92%
• 3Y*: 10.92%
• 5Y*: 4.39%
• 10Y*: 7.05%

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

OUSM vs. REZ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
OUSM OShares U.S. Small-Cap Quality Dividend ETF	8.25%	2.17%	13.45%	18.82%	-7.89%	21.45%	7.64%	28.04%	-10.60%	10.85%
REZ iShares Residential Real Estate ETF	12.29%	4.80%	12.73%	10.97%	-28.31%	47.86%	-6.62%	24.49%	3.89%	3.87%

Correlation

The correlation between OUSM and REZ is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (All Time) Calculated using the full available price history since Dec 30, 2016	0.51

The correlation between OUSM and REZ shifts across timeframes, from 0.44 (1 year) to 0.59 (5 years), reflecting how their relationship changes across market environments.

OUSM vs. REZ - Sectors Allocation Comparison

Sectors	OUSM	REZ
Industrials	22.8%	-
Financial Services	21.1%	0.1%
Consumer Cyclical	19.3%	-
Technology	13.5%	-
Healthcare	9.2%	-
Consumer Defensive	4.9%	-
Utilities	3.9%	-
Communication Services	3.8%	-
Basic Materials	1.4%	-
Energy	0.3%	-
Real Estate	-	99.4%

Return for Risk

OUSM vs. REZ — Risk / Return Rank

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

OUSM

OUSM Risk / Return Rank: 28
OUSM Sharpe Ratio Rank: 28
OUSM Sortino Ratio Rank: 29
OUSM Omega Ratio Rank: 26
OUSM Calmar Ratio Rank: 30
OUSM Martin Ratio Rank: 29

REZ

REZ Risk / Return Rank: 31
REZ Sharpe Ratio Rank: 30
REZ Sortino Ratio Rank: 28
REZ Omega Ratio Rank: 27
REZ Calmar Ratio Rank: 36
REZ Martin Ratio Rank: 36

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.

OUSM vs. REZ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for OShares U.S. Small-Cap Quality Dividend ETF (OUSM) and iShares Residential Real Estate ETF (REZ). 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.

	OUSM	REZ	Difference
Sharpe ratio: Return per unit of total volatility	0.89	0.95	-0.06
Sortino ratio: Return per unit of downside risk	1.42	1.36	+0.06
Omega ratio: Gain probability vs. loss probability	1.16	1.17	-0.01
Calmar ratio: Return relative to maximum drawdown	1.29	1.60	-0.31
Martin ratio: Return relative to average drawdown	3.76	4.86	-1.10

OUSM vs. REZ - Sharpe Ratio Comparison

The current OUSM Sharpe Ratio is 0.89, which is comparable to the REZ Sharpe Ratio of 0.95. The chart below compares the historical Sharpe Ratios of OUSM and REZ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

OUSM vs. REZ - Drawdown Comparison

The maximum OUSM drawdown since its inception was -39.84%, smaller than the maximum REZ drawdown of -66.87%. Use the drawdown chart below to compare losses from any high point for OUSM and REZ.

Drawdown Indicators

	OUSM	REZ	Difference
Max Drawdown Largest peak-to-trough decline	-39.84%	-66.87%	+27.03%
Max Drawdown (1Y) Largest decline over 1 year	-9.21%	-8.76%	-0.45%
Max Drawdown (3Y) Largest decline over 3 years	-19.44%	-18.39%	-1.05%
Max Drawdown (5Y) Largest decline over 5 years	-19.44%	-35.05%	+15.61%
Max Drawdown (10Y) Largest decline over 10 years	—	-44.15%	—
Current Drawdown Current decline from peak	-0.33%	0.00%	-0.33%
Average Drawdown Average peak-to-trough decline	-5.20%	-12.67%	+7.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.15%	2.87%	+0.28%

Volatility

OUSM vs. REZ - Volatility Comparison

The current volatility for OShares U.S. Small-Cap Quality Dividend ETF (OUSM) is 3.89%, while iShares Residential Real Estate ETF (REZ) has a volatility of 5.69%. This indicates that OUSM experiences smaller price fluctuations and is considered to be less risky than REZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OUSM	REZ	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.89%	5.69%	-1.80%
Volatility (6M) Calculated over the trailing 6-month period	9.31%	11.14%	-1.83%
Volatility (1Y) Calculated over the trailing 1-year period	13.26%	14.73%	-1.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.32%	18.97%	-2.65%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.92%	21.55%	-2.63%

OUSM vs. REZ - Expense Ratio Comparison

Both OUSM and REZ have an expense ratio of 0.48%.

Dividends

OUSM vs. REZ - Dividend Comparison

OUSM's dividend yield for the trailing twelve months is around 2.04%, which matches REZ's 2.05% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
OUSM OShares U.S. Small-Cap Quality Dividend ETF	2.04%	2.09%	1.62%	1.64%	1.98%	1.55%	2.02%	1.99%	2.63%	2.17%	0.00%	0.00%
REZ iShares Residential Real Estate ETF	2.05%	2.74%	2.26%	2.94%	3.37%	1.81%	3.17%	2.90%	3.63%	3.57%	5.55%	3.18%

Frequently Asked Questions

Can I hold both OUSM and REZ in my portfolio?

OUSM and REZ have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, OUSM or REZ?

REZ has higher volatility (5.69%) compared to OUSM (3.89%). In terms of maximum drawdown, OUSM dropped -39.84% vs REZ's -66.87%.

Which ETF is better, OUSM or REZ?

On 5-year performance, OUSM leads with 7.57% vs 4.39% for REZ. Both ETFs have the same 0.48% expense ratio. On volatility, OUSM has been the lower-risk option at 3.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OUSM or REZ?

Over the 5-year period, OUSM has performed better with a 7.57% return vs 4.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OUSM or REZ?

OUSM and REZ have the same expense ratio: 0.48% per year.

Which ETF pays a higher dividend yield, OUSM or REZ?

OUSM and REZ have nearly identical dividend yields, around 2.04%.

What is the main difference between OUSM and REZ?

OUSM is categorized as Small Cap Blend Equities, while REZ is REIT. OUSM tracks O'Shares US Small-Cap Quality Dividend Index, while REZ tracks FTSE NAREIT All Residential Capped Index. They also come from different issuers: O'Shares Investments and iShares.

Which has better risk-adjusted returns?

REZ currently has the higher Sharpe Ratio (0.95 vs 0.89), 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.