REM vs. O
REM (iShares Mortgage Real Estate ETF) is REIT fund tracking the FTSE NAREIT All Mortgage Capped Index, while O (Realty Income Corporation) is a stock. Over the past 10 years, REM returned 2.77%/yr vs 4.30%/yr for O. A 0.53 correlation means they provide meaningful diversification when combined.
Performance
REM vs. O - Performance Comparison
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Returns By Period
In the year-to-date period, REM achieves a -1.08% return, which is significantly lower than O's 9.82% return. Over the past 10 years, REM has underperformed O with an annualized return of 2.77%, while O has yielded a comparatively higher 4.30% annualized return.
REM
- 1D
- -0.79%
- 1M
- 0.25%
- YTD
- -1.08%
- 6M
- -2.10%
- 1Y
- 10.93%
- 3Y*
- 7.74%
- 5Y*
- -2.41%
- 10Y*
- 2.77%
O
- 1D
- 0.56%
- 1M
- -1.89%
- YTD
- 9.82%
- 6M
- 9.76%
- 1Y
- 11.86%
- 3Y*
- 6.80%
- 5Y*
- 3.66%
- 10Y*
- 4.30%
REM vs. O - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
REM iShares Mortgage Real Estate ETF | -1.08% | 13.30% | -1.00% | 14.43% | -27.56% | 16.14% | -19.99% | 21.34% | -3.09% | 18.43% |
O Realty Income Corporation | 9.82% | 12.20% | -2.11% | -4.55% | -7.38% | 23.95% | -11.60% | 21.27% | 15.94% | 3.67% |
Correlation
The correlation between REM and O is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.35 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.43 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.47 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.46 |
Correlation (All Time) Calculated using the full available price history since May 4, 2007 | 0.53 |
The correlation between REM and O shifts across timeframes, from 0.35 (1 year) to 0.53 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
REM vs. O — Risk / Return Rank
REM
O
REM vs. O - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Mortgage Real Estate ETF (REM) and Realty Income Corporation (O). 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.
| REM | O | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.08 | ||
| Sortino ratioReturn per unit of downside risk | -0.06 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.13 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 0.77 | 1.07 | -0.30 |
| Martin ratioReturn relative to average drawdown | 2.08 | 2.51 | -0.43 |
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Drawdowns
REM vs. O - Drawdown Comparison
The maximum REM drawdown since its inception was -74.73%, which is greater than O's maximum drawdown of -48.45%. Use the drawdown chart below to compare losses from any high point for REM and O.
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Drawdown Indicators
| REM | O | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -74.73% | -48.45% | -26.28% |
Max Drawdown (1Y)Largest decline over 1 year | -14.25% | -11.10% | -3.15% |
Max Drawdown (3Y)Largest decline over 3 years | -21.91% | -26.49% | +4.58% |
Max Drawdown (5Y)Largest decline over 5 years | -43.31% | -34.48% | -8.83% |
Max Drawdown (10Y)Largest decline over 10 years | -68.52% | -48.28% | -20.24% |
Current DrawdownCurrent decline from peak | -23.06% | -9.15% | -13.91% |
Average DrawdownAverage peak-to-trough decline | -38.30% | -9.20% | -29.10% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.27% | 4.73% | +0.54% |
Volatility
REM vs. O - Volatility Comparison
The current volatility for iShares Mortgage Real Estate ETF (REM) is 4.73%, while Realty Income Corporation (O) has a volatility of 5.73%. This indicates that REM experiences smaller price fluctuations and is considered to be less risky than O based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| REM | O | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.73% | 5.73% | -1.00% |
Volatility (6M)Calculated over the trailing 6-month period | 13.37% | 12.21% | +1.16% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.02% | 16.46% | +0.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 23.57% | 18.91% | +4.66% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 28.30% | 25.66% | +2.64% |
Dividends
REM vs. O - Dividend Comparison
REM's dividend yield for the trailing twelve months is around 9.11%, more than O's 5.34% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
O Realty Income Corporation | 5.34% | 6.19% | 5.37% | 5.33% | 4.68% | 3.87% | 4.51% | 3.69% | 4.19% | 4.45% | 4.18% | 4.41% |
REM iShares Mortgage Real Estate ETF | 9.11% | 8.70% | 9.61% | 9.46% | 11.13% | 7.29% | 7.72% | 8.16% | 10.00% | 9.97% | 10.03% | 11.99% |
Frequently Asked Questions
REM and O have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
O has higher volatility (5.73%) compared to REM (4.73%). In terms of maximum drawdown, REM dropped -74.73% vs O's -48.45%.
O currently has the higher Sharpe Ratio (0.72 vs 0.65), 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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