ETF Evaluator: iShares Residential & Multisector RE ETF (REZ) Follow This ETF

iShares Residential & Multisector RE ETF Overview

iShares Residential & Multisector RE ETF (REZ) is a passively managed Sector Equity Real Estate exchange-traded fund (ETF). iShares launched the ETF in 2007.

The investment seeks to track the investment results of the FTSE Nareit All Residential Capped Index composed of U.S. residential, healthcare and self-storage real estate equities. The fund generally will invest at least 80% of its assets in the component securities of the underlying index and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents. The underlying index measures the performance of the residential apartments, manufactured homes, healthcare and self-storage real estate sectors of the U.S. equity market. The fund is non-diversified.

About iShares Residential & Multisector RE ETF (REZ)

There are 4 members of the management team with an average tenure of 4.40 years: Jennifer Hsui (2012), Peter Sietsema (2025), Matt Waldron (2025) and Steven White (2025). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and FTSE Nareit All Residntl Capped TR USD index with a weighting of 100%. iShares Residential & Multisector RE ETF has 43 securities in its portfolio. The top 10 holdings constitute 68.2% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

iShares Residential & Multisector RE ETF is part of the Equity global asset class and is within the Sector Equity ETF group. iShares Residential & Multisector RE ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.4% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). iShares Residential & Multisector RE ETF has 0.6% of the portfolio in cash.

Assets Under Management

The fund has $874 million in total assets, which is below the $1 billion average for the Real Estate category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

REZ Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The iShares Residential & Multisector RE ETF expense ratio is average compared to funds in the Real Estate category. iShares Residential & Multisector RE ETF has an expense ratio of 0.48%, which is 3% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares Residential & Multisector RE ETF has a portfolio turnover rate of 14%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 69% for the Real Estate category.

Recently, in the month of June 2026, iShares Residential & Multisector RE ETF returned 6.0%, which earned it a grade of A, as the Real Estate category had an average return of 2.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

iShares Residential & Multisector RE ETF has a trailing yield of 1.99%, which is below the 4.16% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

iShares Residential & Multisector RE ETF Grades

Year to date, the ETF has returned 15.0%, 1.6 percentage points better than the category, which translates into a grade of B. The fund has returned 17.4% over the past year (grade of B), 11.7% over the past three years (grade of A) and 5.2% per year over the past five years (grade of A) and 6.6% per year over the past 10 years (grade of A).

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