REZ vs. ALAI

Last updated Jun 23, 2026

REZ (iShares Residential Real Estate ETF) and ALAI (Alger AI Enablers & Adopters ETF) are both exchange-traded funds - REZ is a REIT fund tracking the FTSE NAREIT All Residential Capped Index, while ALAI is a Technology Equities fund actively managed by Alger. REZ is passively managed, while ALAI is actively managed. Over the past year, REZ returned 12.37% vs 61.78% for ALAI. At a correlation of -0.02, they often move in opposite directions. REZ charges 0.48%/yr vs 0.55%/yr for ALAI.

Performance

REZ vs. ALAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Residential Real Estate ETF (REZ) and Alger AI Enablers & Adopters ETF (ALAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, REZ achieves a 9.54% return, which is significantly lower than ALAI's 27.78% return.

REZ

• 1D: 1.06%
• 1M: -1.63%
• YTD: 9.54%
• 6M: 9.75%
• 1Y: 12.37%
• 3Y*: 11.60%
• 5Y*: 3.90%
• 10Y*: 6.61%

ALAI

• 1D: -1.30%
• 1M: 5.90%
• YTD: 27.78%
• 6M: 25.70%
• 1Y: 61.78%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

REZ vs. ALAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
REZ iShares Residential Real Estate ETF	9.54%	4.80%	17.94%
ALAI Alger AI Enablers & Adopters ETF	27.78%	39.81%	32.38%

Correlation

The correlation between REZ and ALAI is -0.13, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.13
Correlation (All Time) Calculated using the full available price history since Apr 5, 2024	-0.02

The correlation between REZ and ALAI shifts across timeframes, from -0.13 (1 year) to -0.02 (all time), reflecting how their relationship changes across market environments.

Return for Risk

REZ vs. ALAI — Risk / Return Rank

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

REZ

REZ Risk / Return Rank: 26
REZ Sharpe Ratio Rank: 24
REZ Sortino Ratio Rank: 22
REZ Omega Ratio Rank: 22
REZ Calmar Ratio Rank: 29
REZ Martin Ratio Rank: 31

ALAI

ALAI Risk / Return Rank: 68
ALAI Sharpe Ratio Rank: 79
ALAI Sortino Ratio Rank: 69
ALAI Omega Ratio Rank: 67
ALAI Calmar Ratio Rank: 66
ALAI Martin Ratio Rank: 58

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.

REZ vs. ALAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Residential Real Estate ETF (REZ) and Alger AI Enablers & Adopters ETF (ALAI). 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.

	REZ	ALAI	Difference
Sharpe ratio: Return per unit of total volatility	0.83	2.41	-1.58
Sortino ratio: Return per unit of downside risk	1.20	3.01	-1.81
Omega ratio: Gain probability vs. loss probability	1.15	1.39	-0.24
Calmar ratio: Return relative to maximum drawdown	1.42	3.19	-1.77
Martin ratio: Return relative to average drawdown	4.29	10.01	-5.73

REZ vs. ALAI - Sharpe Ratio Comparison

The current REZ Sharpe Ratio is 0.83, which is lower than the ALAI Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of REZ and ALAI, 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

REZ vs. ALAI - Drawdown Comparison

The maximum REZ drawdown since its inception was -66.87%, which is greater than ALAI's maximum drawdown of -29.36%. Use the drawdown chart below to compare losses from any high point for REZ and ALAI.

Drawdown Indicators

	REZ	ALAI	Difference
Max Drawdown Largest peak-to-trough decline	-66.87%	-29.36%	-37.51%
Max Drawdown (1Y) Largest decline over 1 year	-8.76%	-19.48%	+10.72%
Max Drawdown (3Y) Largest decline over 3 years	-18.39%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-35.05%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-44.15%	—	—
Current Drawdown Current decline from peak	-2.45%	-1.30%	-1.15%
Average Drawdown Average peak-to-trough decline	-12.66%	-5.12%	-7.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.89%	6.19%	-3.30%

Volatility

REZ vs. ALAI - Volatility Comparison

The current volatility for iShares Residential Real Estate ETF (REZ) is 5.73%, while Alger AI Enablers & Adopters ETF (ALAI) has a volatility of 10.54%. This indicates that REZ experiences smaller price fluctuations and is considered to be less risky than ALAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	REZ	ALAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	10.54%	-4.81%
Volatility (6M) Calculated over the trailing 6-month period	11.43%	20.43%	-9.00%
Volatility (1Y) Calculated over the trailing 1-year period	14.99%	25.82%	-10.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.98%	28.83%	-9.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.57%	28.83%	-7.26%

REZ vs. ALAI - Expense Ratio Comparison

REZ has a 0.48% expense ratio, which is lower than ALAI's 0.55% expense ratio.

Dividends

REZ vs. ALAI - Dividend Comparison

REZ's dividend yield for the trailing twelve months is around 2.10%, more than ALAI's 1.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ALAI Alger AI Enablers & Adopters ETF	1.17%	1.50%	0.66%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
REZ iShares Residential Real Estate ETF	2.10%	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 REZ and ALAI in my portfolio?

REZ and ALAI have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, REZ or ALAI?

ALAI has higher volatility (10.54%) compared to REZ (5.73%). In terms of maximum drawdown, REZ dropped -66.87% vs ALAI's -29.36%.

Which ETF is better, REZ or ALAI?

On 1-year performance, ALAI leads with 61.78% vs 12.37% for REZ. On fees, REZ is cheaper at 0.48% per year. On volatility, REZ has been the lower-risk option at 5.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, REZ or ALAI?

Over the 1-year period, ALAI has performed better with a 61.78% return vs 12.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, REZ or ALAI?

REZ is cheaper with a 0.48% expense ratio, compared with 0.55% for ALAI.

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

REZ has the higher dividend yield at 2.10%, compared with 1.17% for ALAI.

What is the main difference between REZ and ALAI?

REZ is categorized as REIT, while ALAI is Technology Equities. They also come from different issuers: iShares and Alger. Their fees differ too: 0.48% for REZ and 0.55% for ALAI.

Which has better risk-adjusted returns?

ALAI currently has the higher Sharpe Ratio (2.41 vs 0.83), 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.