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IYR vs REZ
Which ETF would AI Choose? iShares U.S. Real Estate ETF (IYR) vs. iShares Residential and Multisector Real Estate ETF (REZ)
Key Takeaways
- IYR offers broad, market-cap-weighted exposure to the entire U.S. real estate sector across roughly 60-plus holdings, while REZ concentrates on a narrower universe of residential, healthcare, and self-storage real estate equities.
- REZ is significantly more top-heavy, with a single healthcare REIT (real estate investment trust) representing nearly one-quarter of the portfolio, amplifying single-stock and subsector risk.
- IYR carries a lower expense ratio (0.37% versus 0.48%), giving it a structural cost advantage over the long term.
- Both funds are passively managed index trackers, but they diverge sharply in diversification, liquidity, and thematic concentration, making them more complementary than direct substitutes.
- REZ leans heavily into defensive, income-oriented subsectors such as healthcare, apartments, and storage, whereas IYR also includes office, retail, industrial, data-center, and tower exposure.
- Tickeron AI Verdict: Based on diversification, cost efficiency, liquidity, and lower concentration risk, IYR is the preferred choice of the two.
Introduction
Real estate ETFs have drawn renewed attention as investors weigh the sector's sensitivity to interest rates against its role as an income and inflation-hedging sleeve. Although both IYR and REZ sit within the same asset class and are issued by the same sponsor, they are not interchangeable. IYR provides total real estate sector exposure, while REZ isolates a targeted basket of residential, healthcare, and self-storage REITs. Comparing the two illuminates how structural design, concentration, and subsector selection shape fund performance and relative positioning in today's market.
iShares U.S. Real Estate ETF (IYR) Overview
IYR is a passively managed ETF that seeks to track the Dow Jones U.S. Real Estate Capped Index, a broad market-cap-weighted benchmark of U.S. real estate equities. The fund holds roughly 60-plus securities, offering diversified exposure across nearly every major REIT subsector, including healthcare, retail, telecom towers, industrial, data centers, self-storage, and multifamily residential.
Top holdings include healthcare-focused WELL, industrial giant PLD, tower operator AMT, mall owner SPG, data-center REITs EQIX and DLR, net-lease investor O, and self-storage leader PSA. With a net expense ratio of 0.37%, the fund is one of the more cost-efficient ways to access broad real estate exposure, and its substantial size and trading volume support strong liquidity for institutional and retail investors alike.
iShares Residential and Multisector Real Estate ETF (REZ) Overview
REZ is a passively managed ETF that tracks the FTSE Nareit All Residential Capped Index, targeting U.S. residential, healthcare, and self-storage real estate equities. With roughly 40 holdings, it is considerably more concentrated than IYR and is classified as non-diversified.
Healthcare REITs dominate the portfolio at nearly half of total assets, followed by multifamily residential, self-storage, and single-family rental subsectors. Top holdings include WELL at a weight exceeding 20%, PSA, AVB, VTR, EXR, EQR, and INVH. The fund carries a net expense ratio of 0.48% and, given its smaller asset base and narrower focus, tends to trade with lower average daily volume than IYR.
Industry and Thematic Backdrop
The real estate sector's outlook remains tightly linked to the interest rate environment, since REITs rely on debt financing and compete with fixed income for yield-seeking capital. In recent market cycles, expectations around monetary policy have driven meaningful sector rotation, with rate-sensitive subsectors such as offices and apartments reacting more sharply than operationally resilient areas like data centers and healthcare.
Demographic tailwinds, including an aging population, continue to support healthcare and senior-housing demand, which benefits REZ's heavy allocation. Meanwhile, secular growth in digital infrastructure, e-commerce logistics, and tower leasing supports the data-center, industrial, and telecom exposures found in IYR. Regulatory scrutiny of residential rents and storage pricing, along with shifting housing affordability, represents a key risk for both funds, though IYR's broader mix partially offsets it.
Performance and Positioning Comparison
Over recent weeks and months, the two funds have exhibited different volatility and momentum profiles driven by their contrasting subsector weightings. REZ's concentration in defensive healthcare, apartment, and storage REITs has historically provided steadier, income-driven returns, but it leaves the fund vulnerable to idiosyncratic swings in a few large positions, particularly its oversized healthcare exposure.
IYR, by contrast, blends defensive subsectors with more cyclical and growth-oriented segments such as industrial, retail, and data-center REITs. This broader diversification tends to smooth single-stock risk while still capturing sector-wide upside during risk-on periods. In recent market cycles, relative positioning has favored funds with liquid, diversified exposure as investors rotate across subsectors in response to shifting rate expectations and earnings trends among top holdings.
AI Screener
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Tickeron AI Verdict
Based on observable structural factors, Tickeron's AI would likely favor IYR over REZ in the current environment. IYR offers a meaningfully lower expense ratio, broader diversification across the full real estate sector, deeper liquidity, and reduced single-stock concentration. While REZ provides a purer, more defensive thematic tilt, its heavy reliance on a handful of healthcare and residential holdings introduces elevated idiosyncratic risk. For investors seeking diversified sector exposure with superior cost efficiency and trend consistency, IYR presents the more balanced relative profile.
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 Hold and REZ is a Hold.
IYR in upward trend: 10-day moving average broke above 50-day moving average on November 02, 2026
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 16 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 89%.
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%.
The Moving Average Convergence Divergence (MACD) for IYR just 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%.
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.
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 24 of the 28 cases, the stock moved lower in the following days. This puts the odds of a move lower at 86%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 53 of 66 cases where IYR'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 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.
REZ in -1.43% downward trend, falling for three consecutive days on November 12, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where REZ declined for three days, in 242 of 287 cases, the price declined further within the following month. The odds of a continued downward trend are 84%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for REZ 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 31 similar instances where the indicator moved out of overbought territory. In 25 of the 31 cases, the stock moved lower in the following days. This puts the odds of a move lower at 81%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 53 of 66 cases where REZ's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 80%.
REZ 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.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on REZ as a result. In 64 of 76 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 84%.
The Moving Average Convergence Divergence (MACD) for REZ just turned positive on October 12, 2026. Looking at past instances where REZ's MACD turned positive, the stock continued to rise in 46 of 51 cases over the following month. The odds of a continued upward trend are 90%.
REZ moved above its 50-day moving average on October 30, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for REZ 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 22 of 25 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 88%.
Following a +3.43% 3-day Advance, the price is estimated to grow further. Considering data from situations where REZ advanced for three days, in 267 of 311 cases, the price rose further within the following month. The odds of a continued upward trend are 86%.
The Aroon Indicator entered an Uptrend today. In 219 of 281 cases where REZ Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 78%.
| IYR | REZ | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 86% | 3 days ago 81% |
| Stochastic ODDS (%) | 3 days ago 80% | 3 days ago 80% |
| Momentum ODDS (%) | 5 days ago 81% | 3 days ago 84% |
| MACD ODDS (%) | 6 days ago 85% | 5 days ago 90% |
| TrendWeek ODDS (%) | 3 days ago 82% | 3 days ago 82% |
| TrendMonth ODDS (%) | 3 days ago 79% | 3 days ago 84% |
| Advances ODDS (%) | 14 days ago 83% | 12 days ago 86% |
| Declines ODDS (%) | 4 days ago 85% | 4 days ago 84% |
| BollingerBands ODDS (%) | 3 days ago 83% | 3 days ago 83% |
| Aroon ODDS (%) | 3 days ago 75% | 3 days ago 78% |
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