VNQ vs. IYR
VNQ (Vanguard Real Estate ETF) and IYR (iShares U.S. Real Estate ETF) are both REIT funds - VNQ tracks the MSCI US Investable Market Real Estate 25/50 Index while IYR tracks the Dow Jones U.S. Real Estate Index. Both are passively managed. Over the past 10 years, VNQ returned 5.20%/yr vs 5.50%/yr for IYR. With a 0.98 correlation, they move nearly in lockstep. VNQ charges 0.13%/yr vs 0.42%/yr for IYR.
Performance
VNQ vs. IYR - Performance Comparison
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Returns By Period
In the year-to-date period, VNQ achieves a 9.20% return, which is significantly higher than IYR's 8.00% return. Over the past 10 years, VNQ has underperformed IYR with an annualized return of 5.20%, while IYR has yielded a comparatively higher 5.50% annualized return.
VNQ
- 1D
- -2.50%
- 1M
- 0.63%
- YTD
- 9.20%
- 6M
- 9.07%
- 1Y
- 10.97%
- 3Y*
- 8.75%
- 5Y*
- 2.59%
- 10Y*
- 5.20%
IYR
- 1D
- -2.63%
- 1M
- 0.20%
- YTD
- 8.00%
- 6M
- 8.04%
- 1Y
- 9.27%
- 3Y*
- 8.19%
- 5Y*
- 2.42%
- 10Y*
- 5.50%
VNQ vs. IYR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNQ Vanguard Real Estate ETF | 9.20% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 28.91% | -6.03% | 4.90% |
IYR iShares U.S. Real Estate ETF | 8.00% | 3.38% | 4.41% | 11.89% | -25.51% | 38.74% | -5.23% | 28.21% | -4.33% | 9.31% |
Correlation
The correlation between VNQ and IYR is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.99 |
Correlation (3Y) Calculated over the trailing 3-year period | 1.00 |
Correlation (5Y) Calculated over the trailing 5-year period | 1.00 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004 | 0.98 |
The correlation between VNQ and IYR has been stable across timeframes, ranging from 0.98 to 1.00 - a consistent structural relationship.
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Return for Risk
VNQ vs. IYR — Risk / Return Rank
VNQ
IYR
VNQ vs. IYR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) 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.
| VNQ | IYR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.13 | ||
| Sortino ratioReturn per unit of downside risk | +0.17 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.13 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 1.32 | 1.09 | +0.23 |
| Martin ratioReturn relative to average drawdown | 4.15 | 3.39 | +0.76 |
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Drawdowns
VNQ vs. IYR - Drawdown Comparison
The maximum VNQ drawdown since its inception was -73.07%, roughly equal to the maximum IYR drawdown of -74.13%. Use the drawdown chart below to compare losses from any high point for VNQ and IYR.
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Drawdown Indicators
| VNQ | IYR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -73.07% | -74.13% | +1.06% |
Max Drawdown (1Y)Largest decline over 1 year | -8.34% | -8.54% | +0.20% |
Max Drawdown (3Y)Largest decline over 3 years | -17.46% | -17.52% | +0.06% |
Max Drawdown (5Y)Largest decline over 5 years | -34.48% | -33.75% | -0.73% |
Max Drawdown (10Y)Largest decline over 10 years | -42.40% | -42.32% | -0.08% |
Current DrawdownCurrent decline from peak | -2.94% | -3.12% | +0.18% |
Average DrawdownAverage peak-to-trough decline | -13.60% | -12.89% | -0.71% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.65% | 2.74% | -0.09% |
Volatility
VNQ vs. IYR - Volatility Comparison
Vanguard Real Estate ETF (VNQ) and iShares U.S. Real Estate ETF (IYR) have volatilities of 5.08% and 5.22%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VNQ | IYR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.08% | 5.22% | -0.14% |
Volatility (6M)Calculated over the trailing 6-month period | 10.13% | 10.27% | -0.14% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.75% | 13.83% | -0.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.88% | 18.79% | +0.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.74% | 20.36% | +0.38% |
VNQ vs. IYR - Expense Ratio Comparison
VNQ has a 0.13% expense ratio, which is lower than IYR's 0.42% expense ratio.
Dividends
VNQ vs. IYR - Dividend Comparison
VNQ's dividend yield for the trailing twelve months is around 3.65%, more than IYR's 2.25% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYR iShares U.S. Real Estate ETF | 2.25% | 2.48% | 2.57% | 2.75% | 2.92% | 2.06% | 2.58% | 3.05% | 3.53% | 3.73% | 4.41% | 3.92% |
VNQ Vanguard Real Estate ETF | 3.65% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
Frequently Asked Questions
With a correlation of 0.99, VNQ and IYR move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
IYR has higher volatility (5.22%) compared to VNQ (5.08%). In terms of maximum drawdown, VNQ dropped -73.07% vs IYR's -74.13%.
On 10-year performance, IYR leads with 5.50% vs 5.20% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 5.08%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IYR has performed better with a 5.50% return vs 5.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.42% for IYR.
VNQ has the higher dividend yield at 3.65%, compared with 2.25% for IYR.
VNQ tracks MSCI US Investable Market Real Estate 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: 0.13% for VNQ and 0.42% for IYR.
VNQ currently has the higher Sharpe Ratio (0.80 vs 0.67), 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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