IYR vs VTI
iShares US Real Estate ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | IYR | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.37% | 0.03% | |
| AUM | $4.6B | $666.9B | |
| Dividend Yield | 2.14% | 1.07% | |
| Holdings | 65 | 3,543 | |
| YTD Return | +12.29% | +13.14% | |
| 1Y Return | +11.66% | +22.35% | |
| 3Y Return (annualized) | +11.03% | +21.83% | |
| 5Y Return (annualized) | +2.19% | +12.01% | |
| Volatility (annualized) | 19.8% | 15.3% | |
| Max Drawdown | -76.5% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 12, 2000 | May 24, 2001 |
IYR vs VTI Performance
iShares US Real Estate ETF (IYR) is a ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year IYR returned +11.66% while VTI returned +22.35%. Year to date, IYR is up 12.29% versus a gain of 13.14% for VTI.
Over three years, IYR compounded at +11.03% per year against +21.83% for VTI; over five years the annualized figures are +2.19% and +12.01% respectively. Across the full 25-year window we track, VTI has the edge at +8.09% annualized vs +4.82%. 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 15.3% for VTI. 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 -56.6% for VTI. 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 0.73. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
IYR charges 0.37% per year while VTI 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 2.14% against 1.07% for VTI.
Holdings Overlap
IYR and VTI share 45 holdings out of 2804 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IYR or VTI?
IYR has an expense ratio of 0.37% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $34 per year of difference.
Which performed better, IYR or VTI?
Over the past year IYR returned +11.66% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (25 years), IYR annualized +4.82% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, IYR or VTI?
IYR has been the more volatile fund at 19.8% annualized versus 15.3% for VTI. Worst drawdown: IYR -76.5% vs VTI -56.6%.
Should I hold both IYR and VTI?
IYR and VTI have a monthly-return correlation of 0.73, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IYR and VTI?
IYR and VTI share 45 common holdings with a 1.7% weight overlap. Combined, they hold 2804 unique securities.
Which pays a higher dividend, IYR or VTI?
IYR yields 2.14% while VTI yields 1.07%, so IYR currently pays the higher dividend yield.
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