IYR vs VOO
iShares US Real Estate ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | IYR | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.03% | |
| AUM | $4.8B | $979.0B | |
| Dividend Yield | 2.21% | 1.09% | |
| Holdings | 65 | 509 | |
| YTD Return | +10.98% | +13.72% | |
| 1Y Return | +12.08% | +21.63% | |
| 3Y Return (annualized) | +9.37% | +21.55% | |
| 5Y Return (annualized) | +2.01% | +13.26% | |
| Volatility (annualized) | 19.8% | 14.1% | |
| Max Drawdown | -76.5% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | Sep 7, 2010 |
IYR vs VOO Performance
iShares US Real Estate ETF (IYR) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year IYR returned +12.08% while VOO returned +21.63%. Year to date, IYR is up 10.98% versus a gain of 13.72% for VOO.
Over three years, IYR compounded at +9.37% per year against +21.55% for VOO; over five years the annualized figures are +2.01% and +13.26% respectively. Across the full 16-year window we track, VOO has the edge at +13.56% annualized vs +4.78%. 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 14.1% for VOO. 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 -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.75. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYR charges 0.38% per year while VOO charges 0.03%. On a $10,000 position that is $38 vs $3 annually, a gap of $35 per year that compounds over a long holding period. On income, IYR currently yields 2.21% against 1.09% for VOO.
Holdings Overlap
IYR and VOO share 31 holdings out of 536 unique holdings combined, representing a 1.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYR or VOO?
IYR has an expense ratio of 0.38% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, IYR or VOO?
Over the past year IYR returned +12.08% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), IYR annualized +4.78% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, IYR or VOO?
IYR has been the more volatile fund at 19.8% annualized versus 14.1% for VOO. Worst drawdown: IYR -76.5% vs VOO -34.3%.
Should I hold both IYR and VOO?
IYR and VOO have a monthly-return correlation of 0.75, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYR and VOO?
IYR and VOO share 31 common holdings with a 1.9% weight overlap. Combined, they hold 536 unique securities.
Which pays a higher dividend, IYR or VOO?
IYR yields 2.21% while VOO yields 1.09%, so IYR currently pays the higher dividend yield.
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