IYR vs SPRE: Weighing a Broad U.S. REIT ETF Against a Concentrated Global Alternative

Key Takeaways

• IYR is a broad, passive, market-cap-weighted U.S. real estate fund with roughly 65 holdings, while SPRE is a far more concentrated, Sharia-compliant global REIT fund with about 32–33 holdings.
• IYR is materially cheaper at a 0.37% expense ratio versus SPRE at 0.50%, and it offers substantially greater liquidity and scale.
• SPRE adds international and emerging-market REIT exposure, but its top 10 names represent nearly 80% of assets, creating significant single-stock and country concentration risk.
• Both funds share heavy overlap in data-center, tower, industrial, and healthcare landlords, meaning their performance is closely tied to interest-rate expectations and the technology-driven demand for digital infrastructure.
• On a structural basis, Tickeron AI Verdict: IYR is favored for its lower cost, broader diversification, and deeper liquidity.

Introduction

Real estate continues to stand out as one of the equity market’s most sensitive sectors to interest-rate shifts, which makes comparing these two ETFs particularly relevant right now. The IYR and SPRE funds both focus on listed property, yet they approach the opportunity from very different angles. One delivers a diversified U.S.-only benchmark approach, while the other follows a global, faith-based strategy built around a compact portfolio. They do not compete directly on structure, but they serve overlapping investor objectives around income and appreciation from real estate. I find it useful to examine how their exposure profiles line up when deciding between broad domestic coverage and a more specialized global option.

IYR: The iShares U.S. Real Estate ETF

IYR tracks the Dow Jones U.S. Real Estate Capped Index in a passive, market-cap-weighted format. It holds roughly 60–65 securities and provides broad exposure across U.S. REITs and real estate operating companies, spanning data centers, cell towers, industrial, retail, residential, healthcare, self-storage, and specialty segments. The largest holdings tilt toward digital and secular-growth names such as WELL, PLD, AMT, SPG, EQIX, DLR, O, PSA, and VTR. The top 10 account for about half the assets, which still leaves room for diversification elsewhere in the portfolio. The expense ratio sits at 0.37%, and the fund’s multi-billion-dollar AUM supports strong liquidity.

SPRE: The SP Funds S&P Global REIT Sharia ETF

SPRE follows the S&P Global REIT Shariah Index and applies Islamic finance screens that exclude companies with excessive leverage, interest income, or prohibited activities. This compliance focus sets it apart from standard real estate funds. The portfolio is much tighter, with roughly 32–33 holdings and the top 10 representing nearly 80% of assets. Overlap with IYR appears in names such as WELL, EQIX, and PLD, but SPRE adds international exposure through Australian REITs like Goodman Group and Charter Hall Group, along with WY, SUI, EGP, ELS, and TRNO. Its 0.50% expense ratio and low-hundreds-of-millions AUM reflect a smaller, less liquid vehicle.

Shared Industry Themes and Macro Drivers

Both ETFs sit at the intersection of interest-rate policy and secular demand for digital infrastructure. Lower rates have historically supported REIT valuations by easing financing costs, while higher rates create pressure. Cloud computing and AI continue to drive demand for data centers and towers, benefiting the core holdings in each fund. Residential and industrial segments also benefit from supply constraints, whereas office and certain retail areas face ongoing challenges. For SPRE, currency moves and country-specific rules introduce extra variables that the U.S.-focused IYR avoids. I also checked this using Tickeron’s AI Screener to see how the sector compares across similar vehicles.

Performance Patterns and Structural Positioning

The funds have tended to move in the same direction due to shared mega-cap holdings, though the magnitude differs. IYR’s wider set of roughly 65 names has delivered more stable returns historically by spreading risk. SPRE shows greater sensitivity to its top holdings and international markets, with recent Australian exposure acting as a drag. On a cost-adjusted basis, IYR benefits from the lower fee and greater liquidity, while SPRE offers a more concentrated global and Sharia-compliant route at the expense of higher concentration risk.

Exploring the AI Screener for ETF Comparisons

Tickeron’s AI Screener has become a regular part of my workflow when I want to quickly filter ETFs by industry, technical patterns, fundamentals, and AI-driven signals. It surfaces ideas and helps compare vehicles like these two without manual effort, which keeps the research process efficient and data-driven.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations

Notable companies

Industry description

Market Cap

High and low price notable news

Volume