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ETF Comparison

IYRI vs VNQ: Which Is the Better Pick in 2026?

A head-to-head comparison of NEOS Real Estate High Income ETF and Vanguard Real Estate ETF covering yield, cost, risk, and income potential.

Updated October 2, 2026

How these figures are calculated: methodology.

Best for

  • IYRIInvestors who want to maximize current income — roughly 11.43%, generated by selling options premium.
  • VNQInvestors who want real-estate income and inflation sensitivity.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

IYRI has lagged VNQ over the trailing twelve months, posting a -0.53% total return against 1.45%. Measured from Jan 2025 — the start of shared available history — VNQ has compounded at 5.08% a year versus 4.88% for IYRI. IYRI has been the steadier holding, though — annualized volatility of 10.7% against 13.7% for VNQ. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulativeSince Jan 2025Volatility Sharpe Sortino Max drawdown
IYRI0.59%-0.53%4.88%10.7%-0.47-0.63-9.2%
VNQ3.98%1.45%5.08%13.7%-0.22-0.31-10.9%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 2, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jan 2025” measures every fund from January 15, 2025 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the past year. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the past year) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Distribution rate and SEC yield

MetricIYRIVNQ
Forward distribution rate11.43%3.60%
Trailing 12-month yield11.92%3.81%
30-day SEC yield3.05%—

Total return (price change plus reinvested distributions) is the Total returns section above. A 30-day SEC yield can sit far from the headline distribution rate; both numbers are the fund's own published fields.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricIYRIVNQ
Full nameNEOS Real Estate High Income ETFVanguard Real Estate ETF
IssuerNEOSVanguard
Underlying indexDow Jones U.S. Real Estate Capped IndexMSCI US IMI Real Estate 25/50 Index
Last Close$45.03 as of October 2, 2026$89.50 as of October 2, 2026
Distribution rate11.43%3.60%
Trailing 12-month yield11.92%3.81%
30-day SEC yield3.05%—
Distribution Safety Score™ 7990
Safety-Adjusted Yield 9.03%3.24%
Expense ratio0.68%0.13%
AUM$302M$36.5B
Distribution frequencyMonthlyQuarterly
ObjectiveSeeks to generate high monthly income with the potential for equity appreciation.Track the MSCI US Investable Market Real Estate 25/50 Index.
Asset classEquityEquity
Inception date01/14/202509/23/2004
Beta0.320.98
Last dividend$0.4289$0.8046
Ex-dividend date09/16/202609/23/2026

Bottom lineChoose IYRI if you want to maximize current income — roughly 11.43%, generated by selling options premium. Choose VNQ if you want real-estate income and inflation sensitivity. There's no free lunch: IYRI's payout comes from selling options, which caps upside and can erode the share price over time, while VNQ keeps full price exposure.

How the risk works

Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.

  • Capped upside and premium dependence. IYRI generates income by selling options, which trades away part of a strong rally in exchange for premium. Distributions can include return of capital, and a payout the underlying assets cannot sustain shows up as NAV erosion over time — the big yield number is not free.

Learn the mechanics: Return of capital, explained · NAV erosion, explained

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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

NEOS
ETFs19
Total AUM$34.7B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

NEOS is known for developing specialized income-focused ETFs that employ strategies like covered calls, hedging, and enhanced yields across various asset classes. The firm manages 19 funds organized into nine distinct families, including offerings in equity high income, fixed income enhancement, digital assets, and alternative strategies, with popular tickers like SPYI (S&P 500 covered call), QQQI (Nasdaq-100 covered call), and QQQH (Nasdaq-100 hedged equity income). NEOS distinguishes itself in the ETF landscape through its emphasis on income generation and downside protection strategies rather than traditional growth approaches.

See our curated list of related YouTube videos on IYRI.

See all NEOS ETFs
Vanguard
ETFs116
Total AUM$4676B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.

See our curated list of related YouTube videos on VNQ.

See all Vanguard ETFs

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Quick verdict

IYRI (NEOS Real Estate High Income ETF) and VNQ (Vanguard Real Estate ETF) are both dividend ETFs, but they take different approaches.

IYRI offers the higher yield at 11.43% vs 3.60% for VNQ. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VNQ is cheaper with an expense ratio of 0.13% compared to 0.68%.

They have different reference exposures: IYRI is linked to Dow Jones U.S. Real Estate Capped Index while VNQ is linked to MSCI US IMI Real Estate 25/50 Index, which means their performance drivers differ.

VNQ is the larger fund by assets ($36.5B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose IYRI

NEOS Real Estate High Income ETF

  • Want to maximize current income — IYRI distributes roughly 11.43% from selling options premium, vs 3.60% for VNQ.
  • Are comfortable with an options-income strategy — a large payout in exchange for capped upside.
  • Prefer lower volatility — a beta of 0.3 vs 1.0 for VNQ.

Choose VNQ

Vanguard Real Estate ETF

  • Want real-estate exposure for income and inflation sensitivity.
  • Want to keep costs low — a 0.13% expense ratio vs 0.68% for IYRI.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, IYRI would generate roughly $95.25 cash per distribution, while VNQ would produce $90.00 cash per distribution, at current distribution rates.

IYRI yield11.43%
VNQ yield3.60%
Cash diff on $10K$5.25

Cost & efficiency

Over 10 years on $10,000, IYRI would cost approximately $680 in fees vs $130 for VNQ (simplified, not compounded). The $550.00 difference may be offset by yield or performance.

IYRI ER0.68%
VNQ ER0.13%

Strategy & risk

IYRI tracks Dow Jones U.S. Real Estate Capped Index with an options approach, while VNQ tracks MSCI US IMI Real Estate 25/50 Index with a dividend approach. Beta is 0.32 for IYRI and 0.98 for VNQ, making IYRI the less volatile of the two by this measure.

IYRI beta0.32
VNQ beta0.98

Fund details

IYRI is managed by NEOS (launched 01/14/2025) with $302M in assets. VNQ is managed by Vanguard (launched 09/23/2004) with $36.5B in assets.

IYRI AUM$302M
VNQ AUM$36.5B
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Frequently asked questions

What is the current distribution rate for IYRI and VNQ?

IYRI currently distributes 11.43% and VNQ 3.60%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is IYRI or VNQ better for dividend income?

It depends on your goals. IYRI currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between IYRI and VNQ?

IYRI (NEOS Real Estate High Income ETF) tracks Dow Jones U.S. Real Estate Capped Index with an options approach, while VNQ (Vanguard Real Estate ETF) tracks MSCI US IMI Real Estate 25/50 Index with a dividend approach. They are issued by NEOS and Vanguard respectively.

Can I hold both IYRI and VNQ?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is IYRI or VNQ safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — VNQ scores 90, IYRI scores 79, so VNQ's payout currently looks the more resilient of the two. IYRI has also shown lower price volatility (beta 0.32 vs 0.98 for VNQ). No score makes an investment risk-free — treat this as a screening signal, not a guarantee, and the leverage, options-income, or crypto caveats flagged on this page apply regardless of score.

Which has lower fees, IYRI or VNQ?

IYRI has an expense ratio of 0.68% while VNQ charges 0.13%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in IYRI vs VNQ generate?

At current rates, $10,000 in IYRI would generate roughly $95.25 cash per distribution ($1,143.00 annually). The same in VNQ would produce about $90.00 cash per distribution ($360.00 annually).

Which has performed better historically, IYRI or VNQ?

IYRI has lagged VNQ over the trailing twelve months, posting a -0.53% total return against 1.45%. Measured from Jan 2025 — the start of shared available history — VNQ has compounded at 5.08% a year versus 4.88% for IYRI. IYRI has been the steadier holding, though — annualized volatility of 10.7% against 13.7% for VNQ. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

IYRI vs VNQ — at a glance

Generated October 3, 2026.

Overview

IYRI and VNQ both track U.S. real estate through index-based strategies, but they use fundamentally different structures to produce income. VNQ is a traditional REIT index fund tracking the broad MSCI real estate market; IYRI layers a derivative overlay (options strategy) on top of the Dow Jones real estate index to amplify distributions. The result is a sharp tradeoff: IYRI targets an 11.43% yield versus VNQ's 3.60%, but at materially different risk profiles and fee structures.

How they differ

The largest difference is strategy and underlying mechanics. VNQ holds REITs directly and distributes their dividends; IYRI uses options overlay to synthetic income, selling call options against its real estate holdings to fund the higher payout. VNQ charges 0.13% and has $36.5B in assets, a 121-fold size advantage that reflects its two-decade track record; IYRI costs 0.68% despite its synthetic-income structure and holds just $302M since inception in 01/14/2025. Most visibly, IYRI's 0.32 beta suggests muted upside capture (it's designed to trade price appreciation for income), while VNQ's 0.98 beta tracks the broader real estate market's volatility one-for-one.

VNQ: Investors building a long-term real estate allocation within a diversified portfolio who prioritize low costs, unrestricted capital appreciation, and the simplicity of owning a transparent REIT index without synthetic income mechanics.

Key risks to know

  • NAV erosion at high distribution yield. IYRI's 11.43% distribution rate far exceeds typical real estate dividend yields; NAV will likely erode over time unless the underlying index appreciates enough to offset distributions, a pattern common in high-yield covered-call ETFs.
  • Call-option cap on price upside. The covered-call overlay capping IYRI's 0.32 means that if real estate equities appreciate sharply, IYRI shareholders capture less of those gains than VNQ owners would. This is by design but represents a real opportunity cost in rising-rate or credit-recovery environments.
  • Real estate sector concentration. Both funds hold only real estate; economic, interest-rate, or credit shocks specific to the sector will affect both similarly. Their real estate exposure may overlap, creating correlated risk if held alongside other REIT positions.
  • Options volatility and reset risk. IYRI's call ladder resets monthly, exposing the fund to realized volatility in covered-call pricing and potentially forced assignment of shares during rapid market moves, which could force unintended trading activity and tax consequences.

Bottom line

VNQ is a plain-vanilla REIT index fund: low-cost, large, long-proven. IYRI is a income-focused synthetic structure trading capital appreciation for a monthly 11.43% yield, with outsized distribution risk and call-capped upside.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

How covered-call funds work How to read a fund's stats The covered-call opportunity cost

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These comparisons follow the Dividend Vision methodology.