Dividend comparison
VNQ vs IYR: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for Vanguard Real Estate ETF and iShares U.S. Real Estate ETF, side by side. Updated October 21, 2026.
VNQ vs IYR: key differences
The short answer, from the latest data on this page.
- Fees. VNQ is cheaper at 0.13% a year versus 0.37% for IYR. On $10,000 that is $24 a year less in fees.
- Income. VNQ pays more income, yielding 3.69% over the last twelve months versus 2.43% for IYR. That is about $126 more a year on $10,000. Both pay quarterly.
- Performance. Over the last 5 years, IYR returned 1.6% versus -0.3% for VNQ, with dividends reinvested. $10,000 would have grown to $10,162 in IYR and $9,967 in VNQ.
- Risk. Their worst declines over the last 5 years were similar: -34.5% for VNQ and -33.8% for IYR from peak to trough.
- Diversification. VNQ holds 158 positions and IYR holds 58. The ten largest positions make up 43.7% of VNQ and 52.8% of IYR.
- Overlap. At least 76% of the two portfolios overlap by weight, across 58 shared holdings. Owning both adds little diversification.
- Dividend growth. VNQ grew its yearly payout 4.0% a year over the last 4 years, versus -0.7% for IYR.
- Size. VNQ is the larger fund with $66.4 billion in assets, against $3.9 billion for IYR.
Bottom line: VNQ has the edge on these figures, with lower fees, more income today, faster dividend growth and broader diversification. IYR does not lead on any of the measures compared here. With 76% overlap, most investors would hold one or the other rather than both.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | VNQ Vanguard Real Estate ETF | IYR iShares U.S. Real Estate ETF |
|---|---|---|
| Dividend yield (TTM) | 3.69% | 2.43% |
| Dividend / share (TTM) | $3.41 | $2.39 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $0.8046 on Sep 25, 2026 | $0.7382 on Sep 18, 2026 |
| Ex-dividend date | Sep 23, 2026 | Sep 15, 2026 |
| Dividend growth (CAGR) | 4.0% over 4 yrs | -0.7% over 4 yrs |
| Price | $92.28 | $98.00 |
| Dividend growth streak | 1 year | — |
| Beta | 0.99 | 0.98 |
| Max drawdown (5Y) | -34.5% | -33.8% |
| Market cap | $66.40B | $4.09B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.13% | 0.37% |
| Assets under management | $66.40B | $3.95B |
| Number of holdings | 158 | 58 |
| Top 10 concentration | 43.7% | 52.8% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
VNQ
$30.76/mo
$369 /yr at 3.69% yield
IYR
$20.29/mo
$243 /yr at 2.43% yield
Dividend history
Total dividends paid per share in each calendar year. VNQ pays quarterly; IYR pays quarterly.
| Year | VNQ | IYR |
|---|---|---|
| 2025 | $3.4718 | $2.3302 |
| 2024 | $3.4335 | $2.3934 |
| 2023 | $3.4928 | $2.5136 |
| 2022 | $3.2261 | $2.4550 |
| 2021 | $2.9656 | $2.3950 |
Strategy: Alternative income
Income vehicles outside ordinary stocks and bonds: real estate investment trusts, preferred shares, business development companies that lend to private firms, and energy pipeline partnerships. Each is structured to pass most of its earnings through to shareholders, which is why yields are high. Their payouts depend on rents, loan books or pipeline volumes rather than on corporate dividend policy.
These income streams are sensitive to interest rates and credit conditions, and much of the income is taxed as ordinary income rather than qualified dividends.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $9,967 in VNQ and $10,162 in IYR.
| Period | VNQ | IYR |
|---|---|---|
| 1 month | -0.68% | 0.00% |
| 3 months | -7.74% | -6.46% |
| Year to date | 4.28% | 5.97% |
| 1 year | 0.21% | 2.49% |
| 3 years | 38.16% | 40.02% |
| 5 years | -0.33% | 1.62% |
- VNQ
- IYR
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- VNQ
- IYR
VNQ vs IYR holdings overlap
At least 76% overlap by weight, with 58 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | VNQ weight | IYR weight |
|---|---|---|
| WELLWelltower Inc | 9.12% | 10.33% |
| PLDPrologis Inc | 6.86% | 8.76% |
| EQIXEquinix Inc | 5.65% | 4.55% |
| AMTAmerican Tower Corp | 4.32% | 5.03% |
| SPGSimon Property Group Inc | 3.69% | 4.57% |
| DLRDigital Realty Trust Inc | 3.68% | 4.47% |
| ORealty Income Corp | 2.85% | 4.17% |
| PSAPublic Storage | 2.69% | 3.95% |
| VMRKVivmark Residential | 2.46% | 3.48% |
| VTRVentas Inc | 2.34% | 3.44% |
Top 10 holdings
Largest positions by portfolio weight.
VNQ158 holdings total
Quick verdict
VNQ has the edge on these figures, with lower fees, more income today, faster dividend growth and broader diversification. IYR does not lead on any of the measures compared here. With 76% overlap, most investors would hold one or the other rather than both. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
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Frequently asked questions
Is VNQ or IYR better for dividend income?
It depends on your goals. VNQ currently yields 3.69% Trailing Twelve Months (TTM) while IYR yields 2.43%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between VNQ and IYR?
Vanguard Real Estate ETF (VNQ) is an ETF listed on AMEX. iShares U.S. Real Estate ETF (IYR) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, VNQ or IYR?
VNQ has the lower expense ratio. VNQ charges 0.13% a year and IYR charges 0.37%, a difference of $24 a year on a $10,000 investment.
Which has performed better, VNQ or IYR?
Over the last 5 years, IYR has the higher total return with dividends reinvested: VNQ returned -0.3% and IYR returned 1.6%. Past performance does not predict future returns.
Which is riskier, VNQ or IYR?
Measured by the worst peak-to-trough decline over the last five years, VNQ has been riskier: VNQ fell as much as 34.5% and IYR as much as 33.8%. Their betas are 0.99 and 0.98.
How much do VNQ and IYR overlap?
At least 76% of the two portfolios overlap by weight, across 58 shared holdings. The largest shared positions are WELL, PLD, EQIX. Holding both adds little diversification.
How often do VNQ and IYR pay dividends?
Both pay quarterly. The most recent payments were $0.8046 for VNQ and $0.7382 for IYR.
How much income does $10,000 in VNQ vs IYR generate?
At current TTM yields, $10,000 in VNQ would generate roughly $30.76 per month ($369 annually). The same amount in IYR would produce about $20.29 per month ($243 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both VNQ and IYR?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare VNQ vs IYR with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how VNQ and IYR fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.