VNQ vs. IYRI

Last updated Jun 4, 2026

VNQ (Vanguard Real Estate ETF) and IYRI (NEOS Real Estate High Income ETF) are both exchange-traded funds - VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index, while IYRI is a Derivative Income fund tracking the Dow Jones U.S. Real Estate Capped Index. Both are passively managed. Over the past year, VNQ returned 9.97% vs 8.34% for IYRI. With a 0.95 correlation, they move nearly in lockstep. VNQ charges 0.13%/yr vs 0.68%/yr for IYRI.

Performance

VNQ vs. IYRI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Real Estate ETF (VNQ) and NEOS Real Estate High Income ETF (IYRI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VNQ achieves a 7.83% return, which is significantly higher than IYRI's 4.08% return.

VNQ

• 1D: -0.12%
• 1M: -1.10%
• YTD: 7.83%
• 6M: 6.75%
• 1Y: 9.97%
• 3Y*: 9.15%
• 5Y*: 2.18%
• 10Y*: 5.21%

IYRI

• 1D: 0.17%
• 1M: -1.04%
• YTD: 4.08%
• 6M: 3.47%
• 1Y: 8.34%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VNQ vs. IYRI - Yearly Performance Comparison

	2026 (YTD)	2025
VNQ Vanguard Real Estate ETF	7.83%	4.64%
IYRI NEOS Real Estate High Income ETF	4.08%	7.95%

Correlation

The correlation between VNQ and IYRI is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jan 16, 2025	0.95

The correlation between VNQ and IYRI has been stable across timeframes, ranging from 0.95 to 0.95 - a consistent structural relationship.

VNQ vs. IYRI - Sectors Allocation Comparison

Sectors	VNQ	IYRI
Real Estate	97.3%	98.0%
Basic Materials	1.1%	1.3%
Communication Services	0.6%	0.6%
Technology	0.3%	-
Energy	0.1%	-
Financial Services	0.1%	-
Industrials	0.0%	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Healthcare	-	-
Utilities	-	-

Return for Risk

VNQ vs. IYRI — Risk / Return Rank

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

VNQ

VNQ Risk / Return Rank: 23
VNQ Sharpe Ratio Rank: 22
VNQ Sortino Ratio Rank: 21
VNQ Omega Ratio Rank: 20
VNQ Calmar Ratio Rank: 25
VNQ Martin Ratio Rank: 27

IYRI

IYRI Risk / Return Rank: 23
IYRI Sharpe Ratio Rank: 23
IYRI Sortino Ratio Rank: 21
IYRI Omega Ratio Rank: 22
IYRI Calmar Ratio Rank: 24
IYRI Martin Ratio Rank: 28

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.

VNQ vs. IYRI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Real Estate ETF (VNQ) and NEOS Real Estate High Income ETF (IYRI). 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.

	VNQ	IYRI	Difference
Sharpe ratio: Return per unit of total volatility	0.76	0.81	-0.05
Sortino ratio: Return per unit of downside risk	1.12	1.16	-0.05
Omega ratio: Gain probability vs. loss probability	1.14	1.15	-0.01
Calmar ratio: Return relative to maximum drawdown	1.20	1.11	+0.09
Martin ratio: Return relative to average drawdown	3.78	4.00	-0.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VNQ vs. IYRI - Sharpe Ratio Comparison

The current VNQ Sharpe Ratio is 0.76, which is comparable to the IYRI Sharpe Ratio of 0.81. The chart below compares the historical Sharpe Ratios of VNQ and IYRI, 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

	VNQ	IYRI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.76	0.81	-0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.12	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.25	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.68	-0.41

Drawdowns

VNQ vs. IYRI - Drawdown Comparison

The maximum VNQ drawdown since its inception was -73.07%, which is greater than IYRI's maximum drawdown of -12.12%. Use the drawdown chart below to compare losses from any high point for VNQ and IYRI.

Drawdown Indicators

	VNQ	IYRI	Difference
Max Drawdown Largest peak-to-trough decline	-73.07%	-12.12%	-60.95%
Max Drawdown (1Y) Largest decline over 1 year	-8.34%	-7.53%	-0.81%
Max Drawdown (3Y) Largest decline over 3 years	-17.46%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-34.48%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-42.40%	—	—
Current Drawdown Current decline from peak	-3.75%	-2.17%	-1.58%
Average Drawdown Average peak-to-trough decline	-13.63%	-1.72%	-11.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.64%	2.09%	+0.55%

Volatility

VNQ vs. IYRI - Volatility Comparison

Vanguard Real Estate ETF (VNQ) has a higher volatility of 3.72% compared to NEOS Real Estate High Income ETF (IYRI) at 3.03%. This indicates that VNQ's price experiences larger fluctuations and is considered to be riskier than IYRI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VNQ	IYRI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.72%	3.03%	+0.69%
Volatility (6M) Calculated over the trailing 6-month period	9.26%	7.17%	+2.09%
Volatility (1Y) Calculated over the trailing 1-year period	13.16%	10.31%	+2.85%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.80%	13.07%	+5.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.70%	13.07%	+7.63%

VNQ vs. IYRI - Expense Ratio Comparison

VNQ has a 0.13% expense ratio, which is lower than IYRI's 0.68% expense ratio.

Dividends

VNQ vs. IYRI - Dividend Comparison

VNQ's dividend yield for the trailing twelve months is around 3.69%, less than IYRI's 11.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYRI NEOS Real Estate High Income ETF	11.27%	11.72%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VNQ Vanguard Real Estate ETF	3.69%	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

Can I hold both VNQ and IYRI in my portfolio?

With a correlation of 0.95, VNQ and IYRI 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.

Which is riskier, VNQ or IYRI?

VNQ has higher volatility (3.72%) compared to IYRI (3.03%). In terms of maximum drawdown, VNQ dropped -73.07% vs IYRI's -12.12%.

Which ETF is better, VNQ or IYRI?

On 1-year performance, VNQ leads with 9.97% vs 8.34% for IYRI. On fees, VNQ is cheaper at 0.13% per year. On volatility, IYRI has been the lower-risk option at 3.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VNQ or IYRI?

Over the 1-year period, VNQ has performed better with a 9.97% return vs 8.34%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VNQ or IYRI?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.68% for IYRI.

Which ETF pays a higher dividend yield, VNQ or IYRI?

IYRI has the higher dividend yield at 11.27%, compared with 3.69% for VNQ.

What is the main difference between VNQ and IYRI?

VNQ is categorized as REIT, while IYRI is Derivative Income. VNQ tracks MSCI US Investable Market Real Estate 25/50 Index, while IYRI tracks Dow Jones U.S. Real Estate Capped Index. They also come from different issuers: Vanguard and Neos. Their fees differ too: 0.13% for VNQ and 0.68% for IYRI.

Which has better risk-adjusted returns?

IYRI currently has the higher Sharpe Ratio (0.81 vs 0.76), 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.