ETF Versus

IEF vs IYR

iShares 7-10 Year Treasury Bond ETF vs iShares U.S. Real Estate ETF

Last updated: 2026-04-02

IEF iShares

iShares 7-10 Year Treasury Bond ETF (IEF) is an exchange-traded fund issued by iShares that provides exposure to intermediate-term U.S. Treasury bonds. It charges a low expense ratio of 0.15%. The fund offers an attractive dividend yield of 3.84%. Launched in 2002, the fund has a 24-year track record.

AUM: $48.0B ER: 0.15% Yield: 3.84% Since: Jul 22, 2002
IYR iShares

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.

AUM: $3.9B ER: 0.38% Yield: 2.37% Since: Jun 12, 2000

Quick Verdict

IEF is significantly cheaper at 0.15% vs 0.38% expense ratio, saving you approximately $450 per $10,000 invested over 10 years. Both funds have delivered similar 1-year returns (-0.4% vs -1.0%), tracking closely. Income investors may prefer IEF for its higher yield (3.8% vs 2.4%).

Key Metrics

Metric IEF IYR
Expense Ratio 0.15% 0.38%
Dividend Yield 3.8% 2.4%
Fund Family iShares iShares
Category US Intermediate Treasury US Real Estate

Performance Chart

Indexed to 100 at start (5-year comparison)

75 85 95 105 115 125 2021-04 2022-06 2023-09 2024-12 2026-04
IEF -15.9%
IYR +1.0%

Performance Comparison

Period IEF IYR Difference
1 Month -2.14% -6.56% +4.42%
3 Months -1.08% +0.95% -2.03%
6 Months -1.41% -2.23% +0.82%
YTD -1.08% +0.95% -2.03%
1 Year -0.38% -0.97% +0.59%
3 Years -4.38% +12.64% -17.02%
5 Years -15.92% +0.99% -16.91%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IEF Fees IYR Fees You Save
$10.000 10 years $298 $748 $450
$10.000 20 years $1.278 $3.173 $1.895
$10.000 30 years $4.109 $10.097 $5.988
$50.000 10 years $1.490 $3.739 $2.249
$50.000 30 years $20.547 $50.486 $29.939
$100.000 30 years $41.094 $100.972 $59.878

Risk Metrics

Based on 5 years of daily returns

Metric IEF IYR
Annualized Volatility 7.7% 18.8%
Max Drawdown -24.7% -36.9%
Sharpe Ratio -1.00 -0.13

Dividend Comparison

Metric IEF IYR
Annual Dividend (per share) $3.65 $2.25
Dividend Yield 3.84% 2.37%
Distribution Frequency Monthly Quarterly

Top Holdings

IYR Top Holdings

NameWeight
Welltower Inc.WELL10.03%
Prologis, Inc.PLD9.11%
Equinix, Inc.EQIX4.68%
Digital Realty Trust, Inc.DLR4.59%
Simon Property Group, Inc.SPG4.50%
Realty Income CorporationO4.44%
American Tower CorporationAMT4.39%
Public StoragePSA3.40%
Ventas, Inc.VTR3.15%
CBRE Group, Inc.CBRE3.10%

Which One Should You Choose?

Choose IEF if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose IEF if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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