Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: Both IYR and REZ fall intoTier 3: Specialty. This suggests they share a similar risk profile and volatility expectation.
| Metric | IYR | REZ |
|---|---|---|
| Total Return (1Y) | -0.72% | 1.81% |
| NAV Change (1Y) | -1.79% | -2.51% |
| Max Drawdown | -14.65% | -13.95% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
IYR (iShares US Real Estate) is a sector-specific income fund managed by iShares. It focuses on generating income through strategic holdings. With $4.1B in assets under management, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
REZ (iShares Residential Real Estate) is a sector-specific income fund managed by iShares. It focuses on generating income through strategic holdings. With $843.4M in assets under management, this fund has been operational since its inception.
Strategy: Concentrates on sector-specific opportunities, typically REITs, MLPs, or BDCs with higher baseline yields.
In the head-to-head battle of IYR vs REZ, the choice depends on your specific goal. REZ wins for Immediate Income with a 4.32% yield. However, REZ is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
IYR
Annual Yield: 1.07%
$89/mo
($1,072/year)
Frequency: quarterly
REZ
Annual Yield: 4.32%
$360/mo
($4,318/year)
Frequency: quarterly
Income Gap: REZ generates $3,246/year more than IYR on the same $100k investment.
Over 20 years, that's $64,914 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. REZ has delivered a superior Total Return of 1.81% over the past year.
What is an Expense Ratio? The annual fee charged by the fund, expressed as a percentage of assets. It's deducted daily from the fund's NAV, making it invisible to most investors—but it compounds over time.
IYR (LOWER COST)
0.380%
Annual expense ratio
REZ (HIGHER COST)
0.480%
Annual expense ratio
20-YEAR FEE IMPACT SIMULATION ($100,000 INITIAL INVESTMENT)
The Hidden Cost of "Just 0.10%": That seemingly small difference of 0.100% annually becomes $2,000 in lost wealth over 20 years. Factor in compound growth, and you're giving up ~$5,602 in potential portfolio value.
💡 Cost Efficiency Winner: IYR is the clear winner for long-term buy-and-hold investors. Lower fees mean more capital compounds in YOUR account, not the fund manager's.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.