IYR — iShares US Real Estate ETF
iShares (BlackRock) · Expense Ratio: 0.4% · Real Estate · 23bp above the Real Estate category average of 0.17%
Key Facts
| Ticker | IYR |
| Full Name | iShares US Real Estate ETF |
| Provider | iShares (BlackRock) |
| Expense Ratio | 0.4% |
| Category | Real Estate |
| Assets Under Management | $4B |
| Inception Year | 2000 (26 years ago) |
| Number of Holdings | 80 |
| Dividend Yield | ~2.5% (high) |
| Top Holdings | PLD, AMT, EQIX, WELL |
What Is IYR?
IYR, managed by iShares (BlackRock), launched in 2000, is a smaller fund — check bid-ask spreads before making large trades in the Real Estate category. Real estate investment trust ETF providing exposure to commercial and residential property markets. With $4B in assets under management, investors should verify current bid-ask spreads, especially for large orders.
IYR in a FIRE Portfolio
This fund serves as a satellite position — adding targeted exposure to real estate within a FIRE portfolio built around a broad-market core.
Satellite holdings typically make up 5-20% of your portfolio. REITs provide diversification from stocks and bonds — a 5-15% allocation adds real asset exposure and steady dividend income for FIRE portfolios.
Cost Analysis: How IYR's 0.4% Fee Affects Your FIRE Timeline
At 0.4%, IYR is relatively expensive. Annual cost on a $100K position: $400. Over 30 years, fees could consume approximately 2.4% of total returns. On a $1M FIRE portfolio, cumulative fees approach $40,000. Compare with lower-cost peers in Real Estate: .
Dividend Income Potential
With a high dividend yield of approximately 2.5%, here's what IYR could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $2,500/year | $208/month |
| $250,000 | $6,250/year | $521/month |
| $500,000 | $12,500/year | $1,042/month |
| $1,000,000 | $25,000/year | $2,083/month |
Frequently Asked Questions About IYR
What is the expense ratio for IYR?
IYR has an expense ratio of 0.4%. This is relatively expensive — on a $100K portfolio, annual fees are $400. 23bp above the real estate category average of 0.17%.
Is IYR good for a FIRE portfolio?
This fund serves as a satellite position — adding targeted exposure to real estate within a FIRE portfolio built around a broad-market core. Its 0.4% expense ratio is relatively expensive for the Real Estate category.
How does the 0.4% fee affect long-term returns?
At 0.4%, annual costs are $400/$100K. Over 30 years, this could reduce your final portfolio value by 2.4% or more. For a $1M FIRE portfolio, that's $24,000+ in lost compound growth.
Is IYR liquid enough for my portfolio?
IYR manages $4B in assets — a smaller fund — check bid-ask spreads before making large trades. For most individual FIRE investors making regular contributions, liquidity is sufficient. If you're investing large lump sums ($100K+), use limit orders to control your execution price.
Similar ETFs in Real Estate
- VNQ — Vanguard Real Estate ETF (0.13% · Satellite Position)
- SCHH — Schwab US REIT ETF (0.07% · Satellite Position)
- REET — iShares Global REIT ETF (0.14% · Satellite Position)
- USRT — iShares Core US REIT ETF (0.08% · Satellite Position)
- XLRE — Real Estate Select Sector SPDR (0.1% · Satellite Position)
- RWR — SPDR Dow Jones REIT ETF (0.25% · Satellite Position)