IYR vs VOO
iShares US Real Estate ETF vs Vanguard S&P 500 ETF
Which is better, IYR or VOO?
Mid Cap Blend against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 36.4% 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 | VOO |
|---|---|---|
| Expense Ratio | 0.37% | 0.03%Best |
| AUM | $4.4B | $997.4B |
| Dividend Yield | 2.21% | 1.04% |
| Holdings | 65 | 509 |
| YTD Return | +7.19% | +11.55%Best |
| 1Y Return | +5.61% | +17.54%Best |
| 3Y Return (annualized) | +8.62% | +20.71%Best |
| 5Y Return (annualized) | +1.19% | +12.80%Best |
| Volatility (annualized) | 16.4% | 14.1%Best |
| Max Drawdown | -42.3% | -34.3%Best |
| $10,000 over 5 years | $10,609 | $18,262Best |
| Top 10 Weight | 52.4% | 36.4%Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Blend |
| Inception | Jun 12, 2000 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 10, 2026 (16 years).
IYR vs VOO 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 16 years both funds cover.
IYR vs VOO Performance
iShares US Real Estate ETF (IYR) is an ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year IYR returned +5.61% while VOO returned +17.54%. Year to date, IYR is up 7.19% versus a gain of 11.55% for VOO.
Over three years, IYR compounded at +8.62% per year against +20.71% for VOO; over five years the annualized figures are +1.19% and +12.80% respectively. Across the full 16-year window we track, VOO has the edge at +13.35% annualized vs +4.96%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IYR has been the more volatile fund, with annualized monthly volatility of 16.4% 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 -42.3% for IYR and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 0.37% per year while VOO charges 0.03%. On a $10,000 position that is $37 vs $3 annually, a gap of $34 per year that compounds over a long holding period. On income, IYR currently yields 2.21% against 1.04% for VOO.
Holdings Overlap
80.5% of IYR's money is in holdings VOO also owns. 1.9% of VOO's money is in holdings IYR also owns.
Most of IYR is already inside VOO. Owning both mostly buys the same companies twice.
31 positions in common, counted across the 62 positions we hold weights for in IYR and 505 in VOO, against full books of 65 and 509.
What only one of them owns
Our book lists 466 positions for VOO that do not appear in our book for IYR (97.6% of the fund), and 31 for IYR that do not appear in VOO (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 VOO | Difference |
|---|---|---|---|
| WELLWelltower Inc | 10.99% | 0.25% | 10.74% |
| PLDPrologis Inc | 8.96% | 0.20% | 8.76% |
| DLRDigital Realty Trust Inc. | 4.87% | 0.09% | 4.78% |
| 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% | 0.06% | 3.12% |
80.5% of IYR is already inside VOO.
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 VOO?
IYR has an expense ratio of 0.37% while VOO charges 0.03%. VOO is the cheaper option, by $34 a year on a $10,000 investment.
Which performed better, IYR or VOO?
Over the past year IYR returned +5.61% vs +17.54% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), IYR annualized +4.96% vs +13.35% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, IYR or VOO?
IYR has been the more volatile fund at 16.4% annualized versus 14.1% for VOO. Worst drawdown: IYR -42.3% vs VOO -34.3%.
Should I hold both IYR and VOO?
IYR and VOO have a monthly-return correlation of 0.75, 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 VOO?
80.5% of IYR's money is in holdings VOO also owns. 1.9% of VOO'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 505 in VOO.
Which pays a higher dividend, IYR or VOO?
IYR yields 2.21% while VOO yields 1.04%, so IYR currently pays the higher dividend yield.
Is VOO better than IYR?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 36.4% 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.