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IYR vs REM
Which ETF would AI Choose? iShares U.S. Real Estate ETF (IYR) vs. iShares Mortgage Real Estate ETF (REM)
Key Takeaways
- Different exposure within real estate: IYR owns equity real estate investment trusts (REITs) that hold physical properties, while REM owns mortgage REITs (mREITs) that invest in mortgage-backed debt.
- Risk and volatility differ sharply: REM is highly sensitive to interest rates and credit spreads and uses substantial leverage, making it materially more volatile than IYR.
- Cost advantage for IYR: IYR carries a lower net expense ratio (0.37%) versus REM (0.48%).
- Diversification favors IYR: IYR holds roughly 60-plus names across many property subsectors, while REM is concentrated in about 35 mortgage REITs, with its top two holdings exceeding one-third of assets.
- Income profile differs: REM offers a higher distribution yield but with less durable, more rate-sensitive cash flows than IYR.
- Tickeron AI Verdict: IYR is the favored ticker based on broader diversification, lower cost, and more stable structural risk characteristics.
Introduction
Real estate is often treated as a single asset class, but the two exchange-traded funds compared here sit at opposite ends of its risk spectrum. The iShares U.S. Real Estate ETF (IYR) provides diversified access to property-owning equity REITs, while the iShares Mortgage Real Estate ETF (REM) targets mortgage REITs that borrow to finance mortgage debt. Both are issued by BlackRock and both are labeled "Real Estate," yet their return drivers, volatility, and sensitivity to interest rates could hardly be more different. For investors weighing sector exposure against rate risk, this ETF comparison clarifies how the two funds diverge in structure, holdings, and relative positioning.
iShares U.S. Real Estate ETF (IYR) Overview
IYR is a passively managed fund that seeks to track the Dow Jones U.S. Real Estate Capped Index, a market-capitalization-weighted benchmark of U.S. real estate equities. The fund holds roughly 62 to 65 positions, with the vast majority of assets (about 99%) allocated to real estate, and the remainder a small communication-services sliver tied to tower-related companies. Its net expense ratio is 0.37%.
The portfolio spans multiple property subsectors, including health care, industrial, data center, telecom tower, retail, self-storage, and residential REITs. Top holdings include Welltower (WELL), Prologis (PLD), American Tower (AMT), Simon Property Group (SPG), Equinix (EQIX), Digital Realty Trust (DLR), Realty Income (O), and Public Storage (PSA). As a market-cap-weighted, fully passive product, IYR provides broad equity-style exposure to property ownership and rental income.
iShares Mortgage Real Estate ETF (REM) Overview
REM is a passively managed fund that tracks the FTSE Nareit All Mortgage Capped Index, a market-cap-weighted benchmark of U.S. mortgage REITs. Mortgage REITs do not primarily own buildings; they finance or own mortgage loans and mortgage-backed securities, funding these assets with borrowed capital. The fund holds roughly 34 to 35 names and carries a net expense ratio of 0.48%. Unlike IYR, REM is classified as non-diversified.
Concentration is a defining feature. Top holdings include Annaly Capital Management (NLY), AGNC Investment (AGNC), Starwood Property Trust (STWD), Rithm Capital (RITM), Dynex Capital (DX), ARMOUR Residential REIT (ARR), and Blackstone Mortgage Trust (BXMT). Because mREIT earnings hinge on the spread between borrowing costs and asset yields, REM is a leveraged interest-rate and credit play rather than a straightforward property investment.
Industry and Thematic Backdrop
Both funds operate within the real estate sector but respond to different macro forces. Equity REITs in IYR are influenced by occupancy, rental growth, property valuations, and long-term lease income; subsectors such as data centers and telecom towers have benefited from demand tied to artificial intelligence and digital infrastructure. Mortgage REITs in REM, by contrast, live and die by the shape of the yield curve, funding costs, prepayment speeds, and credit conditions.
The current environment of elevated short-term rates and an inverted-to-flat yield curve has pressured net interest margins across mREITs, while ongoing uncertainty around Federal Reserve policy amplifies book-value volatility. Capital flows have favored asset-light, growth-oriented property sectors, leaving highly leveraged mortgage REITs more exposed to credit and funding risk. Regulatory scrutiny of bank commercial real estate exposure has also reshaped the lending landscape that mREITs navigate.
Performance and Positioning Comparison
Over recent market cycles, IYR has exhibited more moderate volatility and steadier relative positioning, supported by diversified property income and lower structural leverage. Its data center, tower, and industrial REIT holdings have provided defensive-growth characteristics amid a technology-led demand cycle. REM, in contrast, has shown higher sensitivity to rate moves and credit spreads, with fund performance swinging more sharply as markets repriced Federal Reserve expectations and mortgage spreads.
Relative positioning also diverges on income versus stability. REM's distribution yield is considerably higher, but that income is less predictable because mREIT dividends fluctuate with financing costs and book value. IYR offers a lower but generally steadier yield backed by contractual rents. For volatility-conscious investors, the structural profile favors IYR; for those explicitly seeking leveraged rate exposure and higher current income, REM represents a more specialized tool.
AI Screener
Tickeron's AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market using technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs with customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore the AI Screener to refine your ETF comparison and uncover opportunities aligned with your strategy.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor IYR over REM in the current environment. IYR offers broader diversification across property subsectors, a lower expense ratio, reduced concentration risk, and materially lower leverage and interest-rate sensitivity. Its exposure to structurally growing segments such as data centers, telecom towers, and industrial logistics supports more consistent trend characteristics. REM's elevated yield is offset by higher volatility, heavy reliance on the financing spread, and significant single-name concentration. While both funds have valid roles, the more diversified, lower-cost, and structurally stable profile of IYR presents the stronger relative positioning under current conditions.
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.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is IYR is a Buy and REM is a Buy.
IYR's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for IYR turned positive on October 09, 2026. Looking at past instances where IYR's MACD turned positive, the stock continued to rise in 40 of 47 cases over the following month. The odds of a continued upward trend are 85%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 12, 2026. You may want to consider a long position or call options on IYR as a result. In 68 of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 81%.
IYR moved above its 50-day moving average on October 29, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for IYR crossed bullishly above the 50-day moving average on November 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 15 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 83%.
Following a +1.44% 3-day Advance, the price is estimated to grow further. Considering data from situations where IYR advanced for three days, in 255 of 309 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
The Aroon Indicator entered an Uptrend today. In 224 of 298 cases where IYR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 75%.
Bearish Trend Analysis
The 10-day RSI Indicator for IYR moved out of overbought territory on November 05, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 28 similar instances where the indicator moved out of overbought territory. In 25 of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at 89%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for IYR moved below the 200-day moving average on October 22, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IYR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 85%.
IYR broke above its upper Bollinger Band on November 04, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
REM's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for REM moved out of oversold territory on October 20, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 27 similar instances when the indicator left oversold territory. In 26 of the 27 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for REM just turned positive on October 15, 2026. Looking at past instances where REM's MACD turned positive, the stock continued to rise in 33 of 43 cases over the following month. The odds of a continued upward trend are 77%.
Following a +2.58% 3-day Advance, the price is estimated to grow further. Considering data from situations where REM advanced for three days, in 254 of 311 cases, the price rose further within the following month. The odds of a continued upward trend are 82%.
REM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 56 of 70 cases where REM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 80%.
The Momentum Indicator moved below the 0 level on November 06, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on REM as a result. In 69 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 81%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where REM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 85%.
The Aroon Indicator for REM entered a downward trend on October 28, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
| IYR | REM | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 89% | 1 day ago 90% |
| Stochastic ODDS (%) | 1 day ago 79% | 1 day ago 80% |
| Momentum ODDS (%) | 1 day ago 81% | 1 day ago 81% |
| MACD ODDS (%) | 1 day ago 85% | 1 day ago 77% |
| TrendWeek ODDS (%) | 1 day ago 82% | 1 day ago 83% |
| TrendMonth ODDS (%) | 1 day ago 79% | 1 day ago 83% |
| Advances ODDS (%) | 9 days ago 83% | 19 days ago 82% |
| Declines ODDS (%) | 5 days ago 85% | 5 days ago 85% |
| BollingerBands ODDS (%) | 1 day ago 86% | 1 day ago 90% |
| Aroon ODDS (%) | 1 day ago 75% | 1 day ago 82% |
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IYR and
Correlation & Price change
A.I.dvisor indicates that over the last year, IYR has been closely correlated with CUBE. These tickers have moved in lockstep 78% of the time. This A.I.-generated data suggests there is a high statistical probability that if IYR jumps, then CUBE could also see price increases.
REM and
Correlation & Price change
A.I.dvisor indicates that over the last year, REM has been loosely correlated with HASI. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if REM jumps, then HASI could also see price increases.
| Ticker / NAME | Correlation To REM | 1D Price Change % | ||
|---|---|---|---|---|
| REM | 100% | +1.16% | ||
| HASI - REM | 62% Loosely correlated | +0.62% | ||
| AFCG - REM | -4% Poorly correlated | +8.36% |