VOO vs. IYR
VOO (Vanguard S&P 500 ETF) and IYR (iShares U.S. Real Estate ETF) are both exchange-traded funds - VOO is a S&P 500 fund tracking the S&P 500 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, VOO returned 15.72%/yr vs 5.75%/yr for IYR. A 0.62 correlation means they provide meaningful diversification when combined. VOO charges 0.03%/yr vs 0.42%/yr for IYR.
Performance
VOO vs. IYR - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with VOO having a 10.99% return and IYR slightly lower at 10.64%. Over the past 10 years, VOO has outperformed IYR with an annualized return of 15.72%, while IYR has yielded a comparatively lower 5.75% annualized return.
VOO
- 1D
- 1.74%
- 1M
- 2.12%
- YTD
- 10.99%
- 6M
- 11.51%
- 1Y
- 27.95%
- 3Y*
- 21.25%
- 5Y*
- 13.93%
- 10Y*
- 15.72%
IYR
- 1D
- -0.75%
- 1M
- 3.79%
- YTD
- 10.64%
- 6M
- 10.25%
- 1Y
- 11.55%
- 3Y*
- 9.07%
- 5Y*
- 2.62%
- 10Y*
- 5.75%
VOO vs. IYR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VOO Vanguard S&P 500 ETF | 10.99% | 17.82% | 24.98% | 26.32% | -18.17% | 28.79% | 18.32% | 31.37% | -4.50% | 21.77% |
IYR iShares U.S. Real Estate ETF | 10.64% | 3.38% | 4.41% | 11.89% | -25.51% | 38.74% | -5.23% | 28.21% | -4.33% | 9.31% |
Correlation
The correlation between VOO and IYR is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.30 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.46 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Sep 9, 2010 | 0.62 |
Over the past year, the correlation between VOO and IYR has dropped to 0.30 - well below their long-term average of 0.62, suggesting their price drivers have been diverging.
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Return for Risk
VOO vs. IYR — Risk / Return Rank
VOO
IYR
VOO vs. IYR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard S&P 500 ETF (VOO) 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.
| VOO | IYR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.42 | ||
| Sortino ratioReturn per unit of downside risk | +1.81 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.16 | +0.26 |
| Calmar ratioReturn relative to maximum drawdown | 3.15 | 1.36 | +1.80 |
| Martin ratioReturn relative to average drawdown | 14.25 | 4.24 | +10.01 |
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Drawdowns
VOO vs. IYR - Drawdown Comparison
The maximum VOO drawdown since its inception was -33.99%, smaller than the maximum IYR drawdown of -74.13%. Use the drawdown chart below to compare losses from any high point for VOO and IYR.
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Drawdown Indicators
| VOO | IYR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -33.99% | -74.13% | +40.14% |
Max Drawdown (1Y)Largest decline over 1 year | -8.90% | -8.54% | -0.36% |
Max Drawdown (3Y)Largest decline over 3 years | -18.69% | -17.52% | -1.17% |
Max Drawdown (5Y)Largest decline over 5 years | -24.52% | -33.75% | +9.23% |
Max Drawdown (10Y)Largest decline over 10 years | -33.99% | -42.32% | +8.33% |
Current DrawdownCurrent decline from peak | -0.63% | -0.75% | +0.12% |
Average DrawdownAverage peak-to-trough decline | -3.68% | -12.89% | +9.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.97% | 2.73% | -0.76% |
Volatility
VOO vs. IYR - Volatility Comparison
Vanguard S&P 500 ETF (VOO) and iShares U.S. Real Estate ETF (IYR) have volatilities of 4.61% and 4.82%, 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
| VOO | IYR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.61% | 4.82% | -0.21% |
Volatility (6M)Calculated over the trailing 6-month period | 9.72% | 9.90% | -0.18% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.34% | 13.60% | -1.26% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.90% | 18.76% | -1.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.05% | 20.34% | -2.29% |
VOO vs. IYR - Expense Ratio Comparison
VOO has a 0.03% expense ratio, which is lower than IYR's 0.42% expense ratio.
Dividends
VOO vs. IYR - Dividend Comparison
VOO's dividend yield for the trailing twelve months is around 1.03%, less than IYR's 2.67% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYR iShares U.S. Real Estate ETF | 2.67% | 2.48% | 2.57% | 2.75% | 2.92% | 2.06% | 2.58% | 3.05% | 3.53% | 3.73% | 4.41% | 3.92% |
VOO Vanguard S&P 500 ETF | 1.03% | 1.13% | 1.24% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% |
Frequently Asked Questions
VOO and IYR have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYR has higher volatility (4.82%) compared to VOO (4.61%). In terms of maximum drawdown, VOO dropped -33.99% vs IYR's -74.13%.
On 10-year performance, VOO leads with 15.72% vs 5.75% for IYR. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 4.61%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VOO has performed better with a 15.72% return vs 5.75%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VOO is cheaper with a 0.03% expense ratio, compared with 0.42% for IYR.
IYR has the higher dividend yield at 2.67%, compared with 1.03% for VOO.
VOO is categorized as S&P 500, while IYR is REIT. VOO tracks S&P 500 Index, while IYR tracks Dow Jones U.S. Real Estate Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.03% for VOO and 0.42% for IYR.
VOO currently has the higher Sharpe Ratio (2.28 vs 0.86), 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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