IYR vs VNQ
iShares U.S. Real Estate ETF vs Vanguard Real Estate Index Fund ETF Shares
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.
Vanguard Real Estate Index Fund ETF Shares (VNQ) is an exchange-traded fund issued by Vanguard that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges a low expense ratio of 0.13%. The fund offers an attractive dividend yield of 3.92%. Launched in 2004, the fund has a 22-year track record.
Quick Verdict
VNQ is significantly cheaper at 0.13% vs 0.38% expense ratio, saving you approximately $489 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (-1.0% vs -1.7%), tracking closely. Income investors may prefer VNQ for its higher yield (3.9% 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
9 of top 10 holdings overlap (90% overlap in 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% |
VNQ Top Holdings
| Name | Weight |
|---|---|
| Vanguard Real Estate II Index Fund!mutf/VRTPX | 14.38% |
| Welltower Inc.WELL | 7.52% |
| Prologis, Inc.PLD | 7.08% |
| Equinix, Inc.EQIX | 5.11% |
| American Tower CorporationAMT | 4.80% |
| Simon Property Group, Inc.SPG | 3.56% |
| Realty Income CorporationO | 3.27% |
| Digital Realty Trust, Inc.DLR | 3.25% |
| Public StoragePSA | 2.59% |
| CBRE Group, Inc.CBRE | 2.35% |
Which One Should You Choose?
Choose VNQ if...
you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.
Choose VNQ if...
you prioritize dividend income and want higher regular distributions from your portfolio.
Either works if...
you just need broad us real estate exposure. Both are solid options — pick whichever your brokerage offers commission-free.