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REZ vs. VTIP
Performance
Return for Risk
Drawdowns
Volatility
Dividends

REZ vs. VTIP

Last updated Jun 9, 2026

REZ (iShares Residential Real Estate ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both exchange-traded funds - REZ is a REIT fund tracking the FTSE NAREIT All Residential Capped Index, while VTIP is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Both are passively managed. Over the past 10 years, REZ returned 6.63%/yr vs 3.08%/yr for VTIP. At a 0.20 correlation, their price movements are largely independent. REZ charges 0.48%/yr vs 0.03%/yr for VTIP.

Performance

REZ vs. VTIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Residential Real Estate ETF (REZ) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, REZ achieves a 8.03% return, which is significantly higher than VTIP's 1.76% return. Over the past 10 years, REZ has outperformed VTIP with an annualized return of 6.63%, while VTIP has yielded a comparatively lower 3.08% 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%

VTIP

1D
0.00%
1M
-0.18%
YTD
1.76%
6M
1.89%
1Y
4.64%
3Y*
5.17%
5Y*
3.37%
10Y*
3.08%
*Multi-year figures are annualized to reflect compound growth (CAGR)

REZ vs. VTIP - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
VTIP
Vanguard Short-Term Inflation-Protected Securities ETF		1.76%6.07%4.74%4.62%-2.94%5.36%4.95%4.86%0.56%0.82%

Correlation

The correlation between REZ and VTIP is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.19

Correlation (3Y)
Calculated over the trailing 3-year period

0.24

Correlation (5Y)
Calculated over the trailing 5-year period

0.25

Correlation (10Y)
Calculated over the trailing 10-year period

0.22

Correlation (All Time)
Calculated using the full available price history since Oct 16, 2012

0.20

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares Residential Real Estate ETF

Vanguard Short-Term Inflation-Protected Securities ETF

Often compared with REZ:
REZ vs. VNQREZ vs. IYRREZ vs. HAUSREZ vs. NUREREZ vs. AVBREZ vs. UREREZ vs. FRESX
Often compared with VTIP:
VTIP vs. SCHPVTIP vs. TIPVTIP vs. VGSHVTIP vs. STIPVTIP vs. BNDVTIP vs. VGITVTIP vs. VTAPX

Return for Risk

REZ vs. VTIP — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
REZ
REZ Risk / Return Rank: 2424
Overall Rank
REZ Sharpe Ratio Rank: 2323
Sharpe Ratio Rank
REZ Sortino Ratio Rank: 2121
Sortino Ratio Rank
REZ Omega Ratio Rank: 2121
Omega Ratio Rank
REZ Calmar Ratio Rank: 2727
Calmar Ratio Rank
REZ Martin Ratio Rank: 2828
Martin Ratio Rank
VTIP
VTIP Risk / Return Rank: 9595
Overall Rank
VTIP Sharpe Ratio Rank: 9393
Sharpe Ratio Rank
VTIP Sortino Ratio Rank: 9696
Sortino Ratio Rank
VTIP Omega Ratio Rank: 9595
Omega Ratio Rank
VTIP Calmar Ratio Rank: 9494
Calmar Ratio Rank
VTIP Martin Ratio Rank: 9494
Martin Ratio Rank
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. VTIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Residential Real Estate ETF (REZ) and Vanguard Short-Term Inflation-Protected Securities ETF (VTIP). 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.

REZVTIPDifference
Sharpe ratioReturn per unit of total volatility
0.71
3.12

-2.40

Sortino ratioReturn per unit of downside risk
1.04
5.31

-4.27

Omega ratioGain probability vs. loss probability

1.13

1.66

-0.54

Calmar ratioReturn relative to maximum drawdown

1.18

6.66

-5.48

Martin ratioReturn relative to average drawdown

3.59

26.11

-22.52

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. VTIP - Sharpe Ratio Comparison

The current REZ Sharpe Ratio is 0.71, which is lower than the VTIP Sharpe Ratio of 3.12. The chart below compares the historical Sharpe Ratios of REZ and VTIP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

REZVTIPDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

0.71

3.12

-2.40

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.20

1.22

-1.02

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.31

1.13

-0.82

Sharpe Ratio (All Time)

Calculated using the full available price history

0.24

0.89

-0.65

Drawdowns

REZ vs. VTIP - Drawdown Comparison

The maximum REZ drawdown since its inception was -66.87%, which is greater than VTIP's maximum drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for REZ and VTIP.

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Drawdown Indicators

REZVTIPDifference

Max Drawdown

Largest peak-to-trough decline

-66.87%

-6.27%

-60.60%

Max Drawdown (1Y)

Largest decline over 1 year

-8.76%

-0.70%

-8.06%

Max Drawdown (3Y)

Largest decline over 3 years

-18.39%

-0.98%

-17.41%

Max Drawdown (5Y)

Largest decline over 5 years

-35.05%

-5.50%

-29.55%

Max Drawdown (10Y)

Largest decline over 10 years

-44.15%

-6.27%

-37.88%

Current Drawdown

Current decline from peak

-3.16%

-0.30%

-2.86%

Average Drawdown

Average peak-to-trough decline

-12.68%

-1.04%

-11.64%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.87%

0.18%

+2.69%

Volatility

REZ vs. VTIP - Volatility Comparison

iShares Residential Real Estate ETF (REZ) has a higher volatility of 4.85% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.45%. This indicates that REZ's price experiences larger fluctuations and is considered to be riskier than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

REZVTIPDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.85%

0.45%

+4.40%

Volatility (6M)

Calculated over the trailing 6-month period

10.94%

1.05%

+9.89%

Volatility (1Y)

Calculated over the trailing 1-year period

14.50%

1.50%

+13.00%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

18.94%

2.78%

+16.16%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.53%

2.74%

+18.79%

REZ vs. VTIP - Expense Ratio Comparison

REZ has a 0.48% expense ratio, which is higher than VTIP's 0.03% expense ratio.

Dividends

REZ vs. VTIP - Dividend Comparison

REZ's dividend yield for the trailing twelve months is around 2.13%, less than VTIP's 3.59% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
VTIP
Vanguard Short-Term Inflation-Protected Securities ETF		3.59%3.81%2.70%2.86%6.84%4.68%1.20%1.95%2.45%1.52%0.76%0.00%

Frequently Asked Questions

REZ and VTIP have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

REZ has higher volatility (4.85%) compared to VTIP (0.45%). In terms of maximum drawdown, REZ dropped -66.87% vs VTIP's -6.27%.

On 10-year performance, REZ leads with 6.63% vs 3.08% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, VTIP has been the lower-risk option at 0.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, REZ has performed better with a 6.63% return vs 3.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VTIP is cheaper with a 0.03% expense ratio, compared with 0.48% for REZ.

VTIP has the higher dividend yield at 3.59%, compared with 2.13% for REZ.

REZ is categorized as REIT, while VTIP is Inflation-Protected Bonds. REZ tracks FTSE NAREIT All Residential Capped Index, while VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.48% for REZ and 0.03% for VTIP.

VTIP currently has the higher Sharpe Ratio (3.12 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.

Portfolio Optimizer

Find the right allocation for REZ and VTIP

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