IYR vs LQD
iShares U.S. Real Estate ETF vs iShares iBoxx $ Investment Grade Corporate Bond ETF
Last updated: 2026-04-02
iShares U.S. Real Estate ETF (IYR) is an exchange-traded fund issued by iShares that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges an above-average expense ratio of 0.38%. The fund offers a moderate dividend yield of 2.37%. Launched in 2000, the fund has a 26-year track record.
iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) is an exchange-traded fund issued by iShares that provides exposure to investment-grade U.S. corporate bonds. It charges a low expense ratio of 0.14%. The fund offers a high dividend yield of 4.53%. Launched in 2002, the fund has a 24-year track record.
Quick Verdict
LQD is significantly cheaper at 0.14% vs 0.38% expense ratio, saving you approximately $469 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (-1.0% vs 0.0%), tracking closely. Income investors may prefer LQD for its higher yield (4.5% vs 2.4%).
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
IYR Top Holdings
| Name | Weight |
|---|---|
| Welltower Inc.WELL | 10.03% |
| Prologis, Inc.PLD | 9.11% |
| Equinix, Inc.EQIX | 4.68% |
| Digital Realty Trust, Inc.DLR | 4.59% |
| Simon Property Group, Inc.SPG | 4.50% |
| Realty Income CorporationO | 4.44% |
| American Tower CorporationAMT | 4.39% |
| Public StoragePSA | 3.40% |
| Ventas, Inc.VTR | 3.15% |
| CBRE Group, Inc.CBRE | 3.10% |
Which One Should You Choose?
Choose LQD if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Choose LQD if...
you prioritize dividend income and want higher regular distributions from your portfolio.