VT vs. IYR
VT (Vanguard Total World Stock ETF) and IYR (iShares U.S. Real Estate ETF) are both exchange-traded funds - VT is a Global Equities fund tracking the FTSE Global All Cap 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, VT returned 12.93%/yr vs 5.97%/yr for IYR. A 0.65 correlation means they provide meaningful diversification when combined. VT charges 0.06%/yr vs 0.42%/yr for IYR.
Performance
VT vs. IYR - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with VT having a 11.06% return and IYR slightly higher at 11.47%. Over the past 10 years, VT has outperformed IYR with an annualized return of 12.93%, while IYR has yielded a comparatively lower 5.97% annualized return.
VT
- 1D
- 0.44%
- 1M
- 0.17%
- YTD
- 11.06%
- 6M
- 11.82%
- 1Y
- 27.43%
- 3Y*
- 19.71%
- 5Y*
- 10.65%
- 10Y*
- 12.93%
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%
VT vs. IYR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VT Vanguard Total World Stock ETF | 11.06% | 22.43% | 16.49% | 22.02% | -18.00% | 18.27% | 16.59% | 26.81% | -9.76% | 24.50% |
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 VT and IYR is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.52 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.62 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Jun 26, 2008 | 0.65 |
Over the past year, the correlation between VT and IYR has dropped to 0.38 - well below their long-term average of 0.65, suggesting their price drivers have been diverging.
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Return for Risk
VT vs. IYR — Risk / Return Rank
VT
IYR
VT vs. IYR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total World Stock ETF (VT) 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.
| VT | IYR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.10 | ||
| Sortino ratioReturn per unit of downside risk | +1.44 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.15 | +0.20 |
| Calmar ratioReturn relative to maximum drawdown | 2.68 | 1.34 | +1.34 |
| Martin ratioReturn relative to average drawdown | 11.67 | 4.19 | +7.48 |
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Drawdowns
VT vs. IYR - Drawdown Comparison
The maximum VT drawdown since its inception was -50.27%, smaller than the maximum IYR drawdown of -74.13%. Use the drawdown chart below to compare losses from any high point for VT and IYR.
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Drawdown Indicators
| VT | IYR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -50.27% | -74.13% | +23.86% |
Max Drawdown (1Y)Largest decline over 1 year | -9.67% | -8.54% | -1.13% |
Max Drawdown (3Y)Largest decline over 3 years | -16.51% | -17.52% | +1.01% |
Max Drawdown (5Y)Largest decline over 5 years | -26.38% | -33.75% | +7.37% |
Max Drawdown (10Y)Largest decline over 10 years | -34.24% | -42.32% | +8.08% |
Current DrawdownCurrent decline from peak | -1.92% | 0.00% | -1.92% |
Average DrawdownAverage peak-to-trough decline | -7.01% | -12.89% | +5.88% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.22% | 2.73% | -0.51% |
Volatility
VT vs. IYR - Volatility Comparison
Vanguard Total World Stock ETF (VT) has a higher volatility of 5.26% compared to iShares U.S. Real Estate ETF (IYR) at 4.80%. This indicates that VT'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
| VT | IYR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.26% | 4.80% | +0.46% |
Volatility (6M)Calculated over the trailing 6-month period | 11.01% | 9.87% | +1.14% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.38% | 13.58% | -0.20% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.15% | 18.76% | -2.61% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.27% | 20.34% | -3.07% |
VT vs. IYR - Expense Ratio Comparison
VT has a 0.06% expense ratio, which is lower than IYR's 0.42% expense ratio.
Dividends
VT vs. IYR - Dividend Comparison
VT's dividend yield for the trailing twelve months is around 1.61%, less 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% |
VT Vanguard Total World Stock ETF | 1.61% | 1.82% | 1.95% | 2.08% | 2.20% | 1.82% | 1.66% | 2.32% | 2.53% | 2.11% | 2.39% | 2.45% |
Frequently Asked Questions
VT and IYR have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VT has higher volatility (5.26%) compared to IYR (4.80%). In terms of maximum drawdown, VT dropped -50.27% vs IYR's -74.13%.
On 10-year performance, VT leads with 12.93% vs 5.97% for IYR. On fees, VT is cheaper at 0.06% 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, VT has performed better with a 12.93% return vs 5.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VT is cheaper with a 0.06% expense ratio, compared with 0.42% for IYR.
IYR has the higher dividend yield at 2.15%, compared with 1.61% for VT.
VT is categorized as Global Equities, while IYR is REIT. VT tracks FTSE Global All Cap Index, while IYR tracks Dow Jones U.S. Real Estate Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.06% for VT and 0.42% for IYR.
VT currently has the higher Sharpe Ratio (1.94 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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