IYR vs MORT: Real Estate ETF Showdown
Institutional side-by-side analysis of fees, dividend cash flows, and underlying holdings overlap.
Key Fundamental Specifications
| Metric | IYR | MORT |
|---|---|---|
| Annual Expense Ratio | 0.39% Lowest Fee | 0.41% |
| Annual Dividend Yield | 3.25% | 11.20% Higher Yield |
| Assets Under Management (AUM) | $3.8 Billion | $0.3 Billion |
| Number of Holdings | 75 Constituents | 28 Constituents |
| Fund Issuer | BlackRock | VanEck |
| Benchmark Index | Dow Jones U.S. Real Estate Index | MVIS US Mortgage REITs Index |
Top Holdings & Weight Overlap
Constituent weights across both funds:
| REIT Constituent | IYR Weight | MORT Weight |
|---|---|---|
| PLD Prologis Inc. | 8.1% | 0.0% |
| EQIX Equinix Inc. | 6.9% | 0.0% |
| WELL Welltower Inc. | 6.5% | 0.0% |
| SPG Simon Property Group | 4.5% | 0.0% |
| PSA Public Storage | 4.2% | 0.0% |
| DLR Digital Realty Trust | 4.0% | 0.0% |
| O Realty Income Corp. | 3.9% | 0.0% |
Institutional Verdict: IYR or MORT?
Fee Advantage: IYR offers the lower expense ratio at 0.39% vs 0.41%. Over a 20-year holding period, lower expense drag preserves thousands of dollars in cumulative returns.
Yield Generation: For income-focused investors, MORT provides the higher current dividend yield at 11.20%, 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 MORT.
Frequently Asked Questions
What is the difference between IYR and MORT?
iShares U.S. Real Estate ETF (IYR) is issued by BlackRock with an expense ratio of 0.39% and dividend yield of 3.25%. In comparison, VanEck Mortgage REIT Income ETF (MORT) is issued by VanEck charging 0.41% with a yield of 11.20%.
Which REIT ETF has lower fees: IYR or MORT?
IYR has the lower annual expense ratio (0.39% vs 0.41%), saving long-term investors money on compounding fee drag.
Which ETF pays a higher dividend yield: IYR or MORT?
MORT currently pays the higher annualized dividend yield (11.20% vs 3.25%).
Can I hold both IYR and MORT in a portfolio?
While you can hold both, IYR and MORT share significant constituent overlap in top REITs like Prologis, American Tower, and Equinix. Holding both may cause redundant portfolio exposure.