REZ vs. VLUE

Last updated Jun 9, 2026

REZ (iShares Residential Real Estate ETF) and VLUE (iShares Edge MSCI USA Value Factor ETF) are both exchange-traded funds - REZ is a REIT fund tracking the FTSE NAREIT All Residential Capped Index, while VLUE is a Large Cap Value Equities fund tracking the MSCI USA Value Weighted Index. Both are passively managed. Over the past 10 years, REZ returned 6.63%/yr vs 15.02%/yr for VLUE. At a 0.41 correlation, their price movements are largely independent. REZ charges 0.48%/yr vs 0.15%/yr for VLUE.

Performance

REZ vs. VLUE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Residential Real Estate ETF (REZ) and iShares Edge MSCI USA Value Factor ETF (VLUE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, REZ achieves a 8.03% return, which is significantly lower than VLUE's 43.65% return. Over the past 10 years, REZ has underperformed VLUE with an annualized return of 6.63%, while VLUE has yielded a comparatively higher 15.02% annualized return.

REZ

• 1D: -1.64%
• 1M: -2.07%
• YTD: 8.03%
• 6M: 6.75%
• 1Y: 10.29%
• 3Y*: 9.61%
• 5Y*: 3.77%
• 10Y*: 6.63%

VLUE

• 1D: 1.90%
• 1M: 7.11%
• YTD: 43.65%
• 6M: 46.05%
• 1Y: 83.03%
• 3Y*: 31.74%
• 5Y*: 15.73%
• 10Y*: 15.02%

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

REZ vs. VLUE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
REZ iShares Residential Real Estate ETF	8.03%	4.80%	12.73%	10.97%	-28.31%	47.86%	-6.62%	24.49%	3.89%	3.87%
VLUE iShares Edge MSCI USA Value Factor ETF	43.65%	32.67%	7.25%	14.26%	-14.17%	28.93%	-0.23%	27.20%	-11.13%	21.95%

Correlation

The correlation between REZ and VLUE is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.45
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since Apr 19, 2013	0.41

The correlation between REZ and VLUE shifts across timeframes, from 0.23 (1 year) to 0.52 (5 years), reflecting how their relationship changes across market environments.

REZ vs. VLUE - Sectors Allocation Comparison

Sectors	REZ	VLUE
Real Estate	99.4%	1.8%
Financial Services	0.1%	10.4%
Basic Materials	-	1.6%
Communication Services	-	8.3%
Consumer Cyclical	-	8.3%
Consumer Defensive	-	4.0%
Energy	-	3.2%
Healthcare	-	8.5%
Industrials	-	7.4%
Technology	-	44.5%
Utilities	-	2.0%

Return for Risk

REZ vs. VLUE — Risk / Return Rank

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

REZ

REZ Risk / Return Rank: 24
REZ Sharpe Ratio Rank: 23
REZ Sortino Ratio Rank: 21
REZ Omega Ratio Rank: 21
REZ Calmar Ratio Rank: 27
REZ Martin Ratio Rank: 28

VLUE

VLUE Risk / Return Rank: 97
VLUE Sharpe Ratio Rank: 98
VLUE Sortino Ratio Rank: 97
VLUE Omega Ratio Rank: 96
VLUE Calmar Ratio Rank: 97
VLUE Martin Ratio Rank: 97

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. VLUE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Residential Real Estate ETF (REZ) and iShares Edge MSCI USA Value Factor ETF (VLUE). 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.

	REZ	VLUE	Difference
Sharpe ratio: Return per unit of total volatility	0.71	4.65	-3.94
Sortino ratio: Return per unit of downside risk	1.04	5.85	-4.80
Omega ratio: Gain probability vs. loss probability	1.13	1.79	-0.66
Calmar ratio: Return relative to maximum drawdown	1.18	9.24	-8.06
Martin ratio: Return relative to average drawdown	3.59	40.39	-36.80
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

REZ vs. VLUE - Sharpe Ratio Comparison

The current REZ Sharpe Ratio is 0.71, which is lower than the VLUE Sharpe Ratio of 4.65. The chart below compares the historical Sharpe Ratios of REZ and VLUE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	REZ	VLUE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.71	4.65	-3.94
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.20	0.88	-0.68
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.31	0.76	-0.45
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.74	-0.50

Drawdowns

REZ vs. VLUE - Drawdown Comparison

The maximum REZ drawdown since its inception was -66.87%, which is greater than VLUE's maximum drawdown of -39.47%. Use the drawdown chart below to compare losses from any high point for REZ and VLUE.

Drawdown Indicators

	REZ	VLUE	Difference
Max Drawdown Largest peak-to-trough decline	-66.87%	-39.47%	-27.40%
Max Drawdown (1Y) Largest decline over 1 year	-8.76%	-9.04%	+0.28%
Max Drawdown (3Y) Largest decline over 3 years	-18.39%	-17.89%	-0.50%
Max Drawdown (5Y) Largest decline over 5 years	-35.05%	-27.12%	-7.93%
Max Drawdown (10Y) Largest decline over 10 years	-44.15%	-39.47%	-4.68%
Current Drawdown Current decline from peak	-3.16%	-3.99%	+0.83%
Average Drawdown Average peak-to-trough decline	-12.68%	-6.01%	-6.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.87%	2.06%	+0.81%

Volatility

REZ vs. VLUE - Volatility Comparison

The current volatility for iShares Residential Real Estate ETF (REZ) is 4.85%, while iShares Edge MSCI USA Value Factor ETF (VLUE) has a volatility of 9.02%. This indicates that REZ experiences smaller price fluctuations and is considered to be less risky than VLUE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	REZ	VLUE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.85%	9.02%	-4.17%
Volatility (6M) Calculated over the trailing 6-month period	10.94%	14.83%	-3.89%
Volatility (1Y) Calculated over the trailing 1-year period	14.50%	17.97%	-3.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.94%	17.91%	+1.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.53%	19.88%	+1.65%

REZ vs. VLUE - Expense Ratio Comparison

REZ has a 0.48% expense ratio, which is higher than VLUE's 0.15% expense ratio.

Dividends

REZ vs. VLUE - Dividend Comparison

REZ's dividend yield for the trailing twelve months is around 2.13%, more than VLUE's 1.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
REZ iShares Residential Real Estate ETF	2.13%	2.74%	2.26%	2.94%	3.37%	1.81%	3.17%	2.90%	3.63%	3.57%	5.55%	3.18%
VLUE iShares Edge MSCI USA Value Factor ETF	1.45%	2.11%	2.73%	2.66%	3.18%	2.22%	2.42%	2.61%	2.70%	2.14%	2.07%	2.39%

Frequently Asked Questions

Can I hold both REZ and VLUE in my portfolio?

REZ and VLUE have a correlation of 0.23, 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 VLUE?

VLUE has higher volatility (9.02%) compared to REZ (4.85%). In terms of maximum drawdown, REZ dropped -66.87% vs VLUE's -39.47%.

Which ETF is better, REZ or VLUE?

On 10-year performance, VLUE leads with 15.02% vs 6.63% for REZ. On fees, VLUE is cheaper at 0.15% per year. On volatility, REZ has been the lower-risk option at 4.85%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, REZ or VLUE?

Over the 10-year period, VLUE has performed better with a 15.02% return vs 6.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, REZ or VLUE?

VLUE is cheaper with a 0.15% expense ratio, compared with 0.48% for REZ.

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

REZ has the higher dividend yield at 2.13%, compared with 1.45% for VLUE.

What is the main difference between REZ and VLUE?

REZ is categorized as REIT, while VLUE is Large Cap Value Equities. REZ tracks FTSE NAREIT All Residential Capped Index, while VLUE tracks MSCI USA Value Weighted Index. Their fees differ too: 0.48% for REZ and 0.15% for VLUE.

Which has better risk-adjusted returns?

VLUE currently has the higher Sharpe Ratio (4.65 vs 0.71), 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.