VDE vs. IYR
VDE (Vanguard Energy ETF) and IYR (iShares U.S. Real Estate ETF) are both exchange-traded funds - VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index, while IYR is a REIT fund tracking the Dow Jones U.S. Real Estate Index. Both are passively managed. Over the past 10 years, VDE returned 9.39%/yr vs 5.97%/yr for IYR. At a 0.39 correlation, their price movements are largely independent. VDE charges 0.09%/yr vs 0.42%/yr for IYR.
Performance
VDE vs. IYR - Performance Comparison
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Returns By Period
In the year-to-date period, VDE achieves a 29.66% return, which is significantly higher than IYR's 11.47% return. Over the past 10 years, VDE has outperformed IYR with an annualized return of 9.39%, while IYR has yielded a comparatively lower 5.97% annualized return.
VDE
- 1D
- 0.77%
- 1M
- -1.49%
- YTD
- 29.66%
- 6M
- 28.33%
- 1Y
- 35.15%
- 3Y*
- 16.71%
- 5Y*
- 20.05%
- 10Y*
- 9.39%
IYR
- 1D
- 0.89%
- 1M
- 3.00%
- YTD
- 11.47%
- 6M
- 11.46%
- 1Y
- 12.40%
- 3Y*
- 9.71%
- 5Y*
- 2.47%
- 10Y*
- 5.97%
VDE vs. IYR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VDE Vanguard Energy ETF | 29.66% | 7.11% | 6.75% | 0.03% | 62.89% | 56.31% | -33.02% | 9.28% | -19.95% | -2.50% |
IYR iShares U.S. Real Estate ETF | 11.47% | 3.38% | 4.41% | 11.89% | -25.51% | 38.74% | -5.23% | 28.21% | -4.33% | 9.31% |
Correlation
The correlation between VDE and IYR is 0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.06 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.22 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.26 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.28 |
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004 | 0.39 |
Over the past year, the correlation between VDE and IYR has dropped to 0.06 - well below their long-term average of 0.39, suggesting their price drivers have been diverging.
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Return for Risk
VDE vs. IYR — Risk / Return Rank
VDE
IYR
VDE vs. IYR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) and iShares U.S. Real Estate ETF (IYR). 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.
| VDE | IYR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.00 | ||
| Sortino ratioReturn per unit of downside risk | +1.19 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.15 | +0.15 |
| Calmar ratioReturn relative to maximum drawdown | 3.20 | 1.34 | +1.86 |
| Martin ratioReturn relative to average drawdown | 8.95 | 4.19 | +4.76 |
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Drawdowns
VDE vs. IYR - Drawdown Comparison
The maximum VDE drawdown since its inception was -74.20%, roughly equal to the maximum IYR drawdown of -74.13%. Use the drawdown chart below to compare losses from any high point for VDE and IYR.
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Drawdown Indicators
| VDE | IYR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -74.20% | -74.13% | -0.07% |
Max Drawdown (1Y)Largest decline over 1 year | -11.80% | -8.54% | -3.26% |
Max Drawdown (3Y)Largest decline over 3 years | -21.41% | -17.52% | -3.89% |
Max Drawdown (5Y)Largest decline over 5 years | -26.58% | -33.75% | +7.17% |
Max Drawdown (10Y)Largest decline over 10 years | -69.29% | -42.32% | -26.97% |
Current DrawdownCurrent decline from peak | -8.26% | 0.00% | -8.26% |
Average DrawdownAverage peak-to-trough decline | -19.95% | -12.89% | -7.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.21% | 2.73% | +1.48% |
Volatility
VDE vs. IYR - Volatility Comparison
Vanguard Energy ETF (VDE) has a higher volatility of 7.15% compared to iShares U.S. Real Estate ETF (IYR) at 4.80%. This indicates that VDE's price experiences larger fluctuations and is considered to be riskier than IYR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VDE | IYR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.15% | 4.80% | +2.35% |
Volatility (6M)Calculated over the trailing 6-month period | 16.59% | 9.87% | +6.72% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.46% | 13.58% | +6.88% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.45% | 18.76% | +7.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 29.93% | 20.34% | +9.59% |
VDE vs. IYR - Expense Ratio Comparison
VDE has a 0.09% expense ratio, which is lower than IYR's 0.42% expense ratio.
Dividends
VDE vs. IYR - Dividend Comparison
VDE's dividend yield for the trailing twelve months is around 2.42%, more than IYR's 2.15% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYR iShares U.S. Real Estate ETF | 2.15% | 2.48% | 2.57% | 2.75% | 2.92% | 2.06% | 2.58% | 3.05% | 3.53% | 3.73% | 4.41% | 3.92% |
VDE Vanguard Energy ETF | 2.42% | 3.11% | 3.23% | 3.34% | 3.65% | 4.13% | 4.76% | 3.42% | 3.35% | 2.90% | 2.31% | 3.17% |
Frequently Asked Questions
VDE and IYR have a correlation of 0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VDE has higher volatility (7.15%) compared to IYR (4.80%). In terms of maximum drawdown, VDE dropped -74.20% vs IYR's -74.13%.
On 10-year performance, VDE leads with 9.39% vs 5.97% for IYR. On fees, VDE is cheaper at 0.09% per year. On volatility, IYR has been the lower-risk option at 4.80%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VDE has performed better with a 9.39% return vs 5.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VDE is cheaper with a 0.09% expense ratio, compared with 0.42% for IYR.
VDE has the higher dividend yield at 2.42%, compared with 2.15% for IYR.
VDE is categorized as Energy Equities, while IYR is REIT. VDE tracks MSCI US Investable Market Energy 25/50 Index, while IYR tracks Dow Jones U.S. Real Estate Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VDE and 0.42% for IYR.
VDE currently has the higher Sharpe Ratio (1.85 vs 0.84), 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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