IYR vs VNQ Stock Comparison: AI Score, Valuation, Performance and Upside
IYR and VNQ are both broad US REIT ETFs with similar holdings but meaningfully different expense ratios. VNQ at 0.13% is roughly one-third the cost of IYR at 0.40%. Both provide diversified exposure to US commercial real estate through REITs. The primary reason to choose one over the other is cost — VNQ's lower expense ratio provides a structural long-term advantage that compounds significantly over 20+ year holding periods.
IYR vs VNQ is essentially the same US REIT market exposure at meaningfully different cost — VNQ at 0.13% vs IYR at 0.40% creates a 0.27% annual headwind for IYR investors that compounds into meaningful wealth difference over long periods, making VNQ the preferred low-cost REIT allocation for most investors.
VNQ holds the edge across 5 of 5 key metrics in this comparison. VNQ has delivered stronger 1-year price return (+14.06% vs +12.45% for IYR).
- hold iShares/BlackRock ETFs as a platform preference and receive commission-free trading on IYR at their brokerage
- value IYR's long track record since 2000 providing extensive historical data through the 2008 financial crisis and COVID real estate stress
- want broad REIT exposure and are willing to pay 0.40% for the iShares platform relationship
- are comfortable with the 0.27% annual cost premium vs VNQ given platform or liquidity preferences
- prefer the lower-cost REIT ETF at 0.13% vs IYR's 0.40% — the primary reason most investors choose VNQ over IYR
- value Vanguard's structural cost-minimization advantages for building a low-expense REIT allocation
- want the REIT ETF used by most institutional and retail investors as the de facto real estate index standard
- are comfortable with Vanguard's REIT index methodology and the commission-free availability at most major brokerages
| Metric | IYR | VNQ |
|---|---|---|
| ETF scorei | 24.9 | 24.8 |
| Latest closei | $104.02 | $98.03 |
| 1M returni | +10.24% | +9.96% |
| 3M returni | -0.33% | -0.04% |
| 6M returni | +1.96% | +2.74% |
| 1Y returni | +12.45% | +14.06% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | IYR | VNQ |
|---|---|---|
| 1Y ago | $11.52K (+15.2%) started 2025-11-04 | $11.84K (+18.4%) started 2025-11-04 |
| 5Y ago | $12.41K (+24.1%) started 2021-11-05 | $13.4K (+34.0%) started 2021-11-05 |
| 10Y ago | $25.94K (+159.4%) started 2016-11-07 | $29.55K (+195.5%) started 2016-11-07 |
Hypothetical — past performance does not guarantee future results.
| Metric | IYR | VNQ |
|---|---|---|
| Expense ratioi | 0.37% | 0.13% |
| Total assets (AUM)i | $4.03B | $68.1B |
| Dividend yieldi | 2.39% | 3.63% |
| Trailing P/Ei | 26.67 | 31.03 |
| Betai | 0.95 | 0.96 |
| 52-week change | 12.45% | 14.06% |
| Metric | IYR | VNQ |
|---|---|---|
| 1Y returni | +12.45% | +14.06% |
| 6M returni | +1.96% | +2.74% |
| 3M returni | -0.33% | -0.04% |
| 1M returni | +10.24% | +9.96% |
| 1Y Sharpe ratio | 0.58 | 0.69 |
| Betai | 0.95 | 0.96 |
| Dividend yieldi | 2.39% | 3.63% |
| 5Y CAGR | +1.50% | +1.61% |
Over the past year, IYR and VNQ have moved strongly in the same direction (correlation of 1.00), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | IYR | VNQ |
|---|---|---|---|
| 1Y | Growthi | +12.45% | +14.06% |
| CAGRi | +12.46% | +14.07% | |
| Volatilityi | 14.30% | 14.10% | |
| Sharpe ratioi | 0.58 | 0.69 | |
| Sortino ratioi | 0.86 | 1.03 | |
| Max drawdowni | 11.82% | 11.38% | |
| Current drawdowni | 2.30% | 2.05% | |
| Avg drawdowni | 2.97% | 2.91% | |
| Ulcer Indexi | 4.17% | 4.08% | |
| Max daily dropi | 3.13% | 3.10% | |
| Max wkly dropi | 4.96% | 4.81% | |
| 5Y | Growthi | +7.70% | +8.28% |
| CAGRi | +1.50% | +1.61% | |
| Volatilityi | 18.89% | 18.95% | |
| Sharpe ratioi | -0.06 | -0.06 | |
| Sortino ratioi | -0.09 | -0.08 | |
| Max drawdowni | 33.74% | 34.48% | |
| Current drawdowni | 2.30% | 2.05% | |
| Avg drawdowni | 14.14% | 14.71% | |
| Ulcer Indexi | 16.44% | 17.02% | |
| Max daily dropi | 4.93% | 5.00% | |
| Max wkly dropi | 11.87% | 12.07% | |
| 10Y | Growthi | +85.16% | +82.03% |
| CAGRi | +6.36% | +6.18% | |
| Volatilityi | 20.34% | 20.69% | |
| Sharpe ratioi | 0.19 | 0.18 | |
| Sortino ratioi | 0.25 | 0.24 | |
| Max drawdowni | 42.32% | 42.40% | |
| Current drawdowni | 2.30% | 2.05% | |
| Avg drawdowni | 9.87% | 10.22% | |
| Ulcer Indexi | 13.32% | 13.68% | |
| Max daily dropi | 16.87% | 17.73% | |
| Max wkly dropi | 24.93% | 24.91% |
| Category | IYR | VNQ |
|---|---|---|
| Fund name | iShares U.S. Real Estate ETF | Vanguard Real Estate Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratioi | 0.37% | 0.13% |
| Total assets (AUM)i | $4.03B | $68.1B |
| Dividend yieldi | 2.39% | 3.63% |
- Comprehensive US REIT exposure across all property types — data centers, apartments, industrial warehouses, retail, and specialty healthcare REITs
- Long track record since 2000 with extensive historical performance data through multiple real estate cycles
- iShares/BlackRock platform provides institutional-quality ETF with deep liquidity
- 0.13% expense ratio provides the same REIT market exposure as IYR at one-third the cost — significant long-term compounding advantage
- Tracks MSCI US Real Estate index with comprehensive REIT coverage and well-established index methodology
- Vanguard's structural advantages (investor-owned fund company) support continued cost minimization
- 0.40% expense ratio is significantly higher than VNQ's 0.13% — meaningful cost difference on large REIT allocations over time
- Rising interest rates compress REIT valuations — REITs use leverage and high dividend yields compete with Treasury bonds for income investors
- Data center and cell tower REIT classification (sometimes in communication services rather than real estate) affects composition
- Rising interest rates compress REIT valuations — same rate sensitivity as IYR; VNQ's lower cost does not eliminate REIT rate risk
- Real estate cycles can produce prolonged drawdowns — COVID reduced office and retail REIT values significantly
- Individual REIT selection within VNQ means concentration in largest REITs (Prologis, American Tower) by market cap weighting
Compare more than two at a time
This page is a fixed writeup on IYR and VNQ. Our comparison engine is the interactive version: load up to five tickers, switch timeframes, and get the correlation, drawdown, and overlap analysis that a static page can't show.
Add three more names beside IYR and VNQ, mixing stocks and ETFs in the same table — useful when the real question is which of a whole peer group to own.
AI score, forward P/E, analyst target upside, operating margin, and revenue growth are scored head-to-head, with a running tally of which ticker leads on how many metrics.
Volatility, Sharpe and Sortino ratios, maximum, current, and average drawdown, Ulcer Index, and worst single-day and single-week drops across every timeframe.
Pairwise daily-return correlation for every combination, so you can see whether two holdings actually diversify each other or just move together.
A scatter plot of forward P/E against return on equity, plus drawdown and 30-day rolling volatility charts, to separate what is cheap from what is merely beaten down.
For ETFs, a top-holdings comparison that exposes hidden overlap between funds. Every comparison exports to CSV for your own spreadsheet work.
Two comparisons a week are free without an account. A 14-day trial removes the limit and adds AI price forecasts, stock rankings, saved watchlists, and the intrinsic value calculator — no credit card required.
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.