IYR vs SPY
iShares US Real Estate ETF vs State Street SPDR S&P 500 ETF Trust
Which is better, IYR or SPY?
Mid Cap Blend against Large Cap Blend.
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 52.4%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | IYR | SPY |
|---|---|---|
| Expense Ratio | 0.37% | 0.09%Best |
| AUM | $4.4B | $804.7B |
| Dividend Yield | 2.21% | 0.98% |
| Holdings | 65 | 505 |
| YTD Return | +7.19% | +11.52%Best |
| 1Y Return | +5.61% | +17.48%Best |
| 3Y Return (annualized) | +8.62% | +20.62%Best |
| 5Y Return (annualized) | +1.19% | +12.73%Best |
| Volatility (annualized) | 19.8% | 15.1%Best |
| Max Drawdown | -76.5% | -56.5%Best |
| $10,000 over 5 years | $10,609 | $18,205Best |
| Top 10 Weight | 52.4% | 38.0%Best |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Blend |
| Inception | Jun 12, 2000 | Jan 22, 1993 |
Volatility and max drawdown are measured over the window both funds cover: Jun 19, 2000 to Sep 10, 2026 (26.2 years).
IYR vs SPY growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 26.2 years both funds cover.
IYR vs SPY Performance
iShares US Real Estate ETF (IYR) is an ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is an ETF from State Street Investment Management. Over the past year IYR returned +5.61% while SPY returned +17.48%. Year to date, IYR is up 7.19% versus a gain of 11.52% for SPY.
Over three years, IYR compounded at +8.62% per year against +20.62% for SPY; over five years the annualized figures are +1.19% and +12.73% respectively. Across the full 26-year window we track, SPY has the edge at +6.71% annualized vs +4.63%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYR has been the more volatile fund, with annualized monthly volatility of 19.8% compared with 15.1% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -76.5% for IYR and -56.5% for SPY. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.69. They move together some of the time, and apart the rest.
Fees and Cost Over Time
IYR charges 0.37% per year while SPY charges 0.09%. On a $10,000 position that is $37 vs $9 annually, a gap of $28 per year that compounds over a long holding period. On income, IYR currently yields 2.21% against 0.98% for SPY.
Holdings Overlap
80.5% of IYR's money is in holdings SPY also owns. 1.8% of SPY's money is in holdings IYR also owns.
Most of IYR is already inside SPY. Owning both mostly buys the same companies twice.
31 positions in common, counted across the 62 positions we hold weights for in IYR and 504 in SPY, against full books of 65 and 505.
What only one of them owns
Our book lists 464 positions for SPY that do not appear in our book for IYR (97.7% of the fund), and 31 for IYR that do not appear in SPY (19.5%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in IYR | Weight in SPY | Difference |
|---|---|---|---|
| WELLWelltower Inc | 10.99% | 0.25% | 10.74% |
| PLDPrologis Inc | 8.96% | 0.19% | 8.77% |
| DLRDigital Realty Trust Inc. | 4.87% | 0.10% | 4.77% |
| SPGSimon Property Group Inc | 4.66% | 0.11% | 4.55% |
| EQIXEquinix, Inc. | 4.48% | 0.16% | 4.32% |
| ORealty Income Corp. | 4.20% | 0.09% | 4.11% |
| PSAPublic Storage | 3.94% | 0.08% | 3.86% |
| AMTAmerican Tower Corp | 3.85% | 0.12% | 3.73% |
| VTRVentas, Inc. | 3.23% | 0.07% | 3.16% |
| CBRECbre Group Inc. Class A | 3.18% | 0.07% | 3.11% |
80.5% of IYR is already inside SPY.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, IYR or SPY?
IYR has an expense ratio of 0.37% while SPY charges 0.09%. SPY is the cheaper option, by $28 a year on a $10,000 investment.
Which performed better, IYR or SPY?
Over the past year IYR returned +5.61% vs +17.48% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (26 years), IYR annualized +4.63% vs +6.71% for SPY. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYR or SPY?
IYR has been the more volatile fund at 19.8% annualized versus 15.1% for SPY. Worst drawdown: IYR -76.5% vs SPY -56.5%.
Should I hold both IYR and SPY?
IYR and SPY have a monthly-return correlation of 0.69, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between IYR and SPY?
80.5% of IYR's money is in holdings SPY also owns. 1.8% of SPY's is in holdings IYR also owns. They hold 31 positions in common, counted across the 62 positions we hold weights for in IYR and 504 in SPY.
Which pays a higher dividend, IYR or SPY?
IYR yields 2.21% while SPY yields 0.98%, so IYR currently pays the higher dividend yield.
Is SPY better than IYR?
SPY has a lower expense ratio. SPY led over 1Y, 3Y, 5Y and the full window. SPY is less concentrated, with 38.0% of the fund in its ten largest positions against 52.4%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.