Real Estate Dow Jones

IYR was among the first US real estate ETFs and is still a stalwart of the space. The fund tracks a typical broad-based real estate index and captures much of the real estate space. It holds roughly 100 companies and covers all the big names. Its overall portfolio characteristics and performance align fairly well with our benchmark. IYR’s early launch into the space is evident in its AUM—the fund hosts billions in assets. Its large asset base has also facilitated abundant liquidity—IYR is among the most traded real estate ETFs. However, the fund is costly to hold compared to segment peers tracking similar indexes. As is the case with other REIT ETFs, distributions from the fund are taxed as ordinary income. Overall, IYR’s coverage of US real estate in an ETF wrapper is tough to beat.