REET vs VYM
iShares Global REIT ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | REET | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.14% | 0.04% | |
| AUM | $5.2B | $79.0B | |
| Dividend Yield | 3.36% | 2.86% | |
| Holdings | 352 | 568 | |
| YTD Return | +14.19% | +15.80% | |
| 1Y Return | +17.80% | +26.12% | |
| 3Y Return (annualized) | +10.55% | +18.25% | |
| 5Y Return (annualized) | +2.79% | +12.51% | |
| Volatility (annualized) | 16.9% | 14.6% | |
| Max Drawdown | -44.6% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 8, 2014 | Nov 10, 2006 |
REET vs VYM Performance
iShares Global REIT ETF (REET) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year REET returned +17.80% while VYM returned +26.12%. Year to date, REET is up 14.19% versus a gain of 15.80% for VYM.
Over three years, REET compounded at +10.55% per year against +18.25% for VYM; over five years the annualized figures are +2.79% and +12.51% respectively. Across the full 12-year window we track, VYM has the edge at +7.07% annualized vs +2.44%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
REET has been the more volatile fund, with annualized monthly volatility of 16.9% compared with 14.6% for VYM. 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 -44.6% for REET and -58.8% for VYM. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
REET charges 0.14% per year while VYM charges 0.04%. On a $10,000 position that is $14 vs $4 annually, a gap of $10 per year that compounds over a long holding period. On income, REET currently yields 3.36% against 2.86% for VYM.
Holdings Overlap
REET and VYM share 0 holdings out of 880 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, REET or VYM?
REET has an expense ratio of 0.14% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $10 per year of difference.
Which performed better, REET or VYM?
Over the past year REET returned +17.80% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), REET annualized +2.44% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, REET or VYM?
REET has been the more volatile fund at 16.9% annualized versus 14.6% for VYM. Worst drawdown: REET -44.6% vs VYM -58.8%.
Should I hold both REET and VYM?
REET and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between REET and VYM?
REET and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 880 unique securities.
Which pays a higher dividend, REET or VYM?
REET yields 3.36% while VYM yields 2.86%, so REET currently pays the higher dividend yield.
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