INDS vs IYR: Real Estate ETF Showdown
Institutional side-by-side analysis of fees, dividend cash flows, and underlying holdings overlap.
Key Fundamental Specifications
| Metric | INDS | IYR |
|---|---|---|
| Annual Expense Ratio | 0.60% | 0.39% Lowest Fee |
| Annual Dividend Yield | 2.95% | 3.25% Higher Yield |
| Assets Under Management (AUM) | $0.2 Billion | $3.8 Billion |
| Number of Holdings | 30 Constituents | 75 Constituents |
| Fund Issuer | Pacer ETFs | BlackRock |
| Benchmark Index | Benchmark Industrial Real Estate SCTR Index | Dow Jones U.S. Real Estate Index |
Top Holdings & Weight Overlap
Constituent weights across both funds:
| REIT Constituent | INDS Weight | IYR Weight |
|---|---|---|
| PLD Prologis Inc. | 15.8% | 8.1% |
| REXR Rexford Industrial Realty | 11.2% | 0.0% |
| FR First Industrial Realty | 9.4% | 0.0% |
| EGP EastGroup Properties | 8.7% | 0.0% |
| STAG STAG Industrial Inc. | 7.9% | 0.0% |
| EQIX Equinix Inc. | 0.0% | 6.9% |
| WELL Welltower Inc. | 0.0% | 6.5% |
| SPG Simon Property Group | 0.0% | 4.5% |
| PSA Public Storage | 0.0% | 4.2% |
| DLR Digital Realty Trust | 0.0% | 4.0% |
Institutional Verdict: INDS or IYR?
Fee Advantage: IYR offers the lower expense ratio at 0.39% vs 0.60%. Over a 20-year holding period, lower expense drag preserves thousands of dollars in cumulative returns.
Yield Generation: For income-focused investors, IYR provides the higher current dividend yield at 3.25%, making it more attractive for living off dividend cash flow.
Conclusion: If your priority is low-cost passive index tracking, choose IYR. If your mandate is maximum immediate dividend yield, choose IYR.
Frequently Asked Questions
What is the difference between INDS and IYR?
Pacer Industrial Real Estate ETF (INDS) is issued by Pacer ETFs with an expense ratio of 0.60% and dividend yield of 2.95%. In comparison, iShares U.S. Real Estate ETF (IYR) is issued by BlackRock charging 0.39% with a yield of 3.25%.
Which REIT ETF has lower fees: INDS or IYR?
IYR has the lower annual expense ratio (0.39% vs 0.60%), saving long-term investors money on compounding fee drag.
Which ETF pays a higher dividend yield: INDS or IYR?
IYR currently pays the higher annualized dividend yield (3.25% vs 2.95%).
Can I hold both INDS and IYR in a portfolio?
While you can hold both, INDS and IYR share significant constituent overlap in top REITs like Prologis, American Tower, and Equinix. Holding both may cause redundant portfolio exposure.