DFAR vs. XLRE
DFAR (Dimensional US Real Estate ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both REIT funds. DFAR is actively managed, while XLRE is passively managed. Over the past 3 years, DFAR returned 11.71%/yr vs 11.31%/yr for XLRE. With a 0.99 correlation, they move nearly in lockstep. DFAR charges 0.19%/yr vs 0.13%/yr for XLRE.
Performance
DFAR vs. XLRE - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, DFAR achieves a 15.09% return, which is significantly higher than XLRE's 12.35% return.
DFAR
- 1D
- 0.73%
- 1M
- 0.69%
- YTD
- 15.09%
- 6M
- 15.60%
- 1Y
- 13.30%
- 3Y*
- 11.71%
- 5Y*
- —
- 10Y*
- —
XLRE
- 1D
- 1.41%
- 1M
- 1.06%
- YTD
- 12.35%
- 6M
- 12.83%
- 1Y
- 9.79%
- 3Y*
- 11.31%
- 5Y*
- 3.53%
- 10Y*
- 6.92%
DFAR vs. XLRE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
DFAR Dimensional US Real Estate ETF | 15.09% | 1.31% | 5.25% | 11.04% | -12.16% |
XLRE Real Estate Select Sector SPDR Fund | 12.35% | 2.63% | 5.09% | 12.36% | -13.12% |
Correlation
The correlation between DFAR and XLRE is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since Feb 24, 2022 | 0.99 |
The correlation between DFAR and XLRE has been stable across timeframes, ranging from 0.97 to 0.99 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
DFAR vs. XLRE — Risk / Return Rank
DFAR
XLRE
DFAR vs. XLRE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Dimensional US Real Estate ETF (DFAR) and Real Estate Select Sector SPDR Fund (XLRE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| DFAR | XLRE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.28 | ||
| Sortino ratioReturn per unit of downside risk | +0.36 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.13 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.58 | 1.18 | +0.40 |
| Martin ratioReturn relative to average drawdown | 4.95 | 3.23 | +1.72 |
Loading charts...
Drawdowns
DFAR vs. XLRE - Drawdown Comparison
The maximum DFAR drawdown since its inception was -32.27%, smaller than the maximum XLRE drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for DFAR and XLRE.
Loading charts...
Drawdown Indicators
| DFAR | XLRE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -32.27% | -38.83% | +6.56% |
Max Drawdown (1Y)Largest decline over 1 year | -8.43% | -8.33% | -0.10% |
Max Drawdown (3Y)Largest decline over 3 years | -17.64% | -16.74% | -0.90% |
Max Drawdown (5Y)Largest decline over 5 years | — | -34.12% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -38.83% | — |
Current DrawdownCurrent decline from peak | -1.31% | -0.72% | -0.59% |
Average DrawdownAverage peak-to-trough decline | -14.05% | -9.56% | -4.49% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.69% | 3.04% | -0.35% |
Volatility
DFAR vs. XLRE - Volatility Comparison
The current volatility for Dimensional US Real Estate ETF (DFAR) is 5.04%, while Real Estate Select Sector SPDR Fund (XLRE) has a volatility of 5.35%. This indicates that DFAR experiences smaller price fluctuations and is considered to be less risky than XLRE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| DFAR | XLRE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.04% | 5.35% | -0.31% |
Volatility (6M)Calculated over the trailing 6-month period | 10.22% | 10.63% | -0.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.74% | 14.17% | -0.43% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.16% | 19.13% | +0.03% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.16% | 20.45% | -1.29% |
DFAR vs. XLRE - Expense Ratio Comparison
DFAR has a 0.19% expense ratio, which is higher than XLRE's 0.13% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
DFAR vs. XLRE - Dividend Comparison
DFAR's dividend yield for the trailing twelve months is around 2.68%, less than XLRE's 3.15% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DFAR Dimensional US Real Estate ETF | 2.68% | 2.97% | 2.89% | 3.06% | 1.69% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
XLRE Real Estate Select Sector SPDR Fund | 3.15% | 3.45% | 3.43% | 3.31% | 3.70% | 2.61% | 3.15% | 3.06% | 3.78% | 3.25% | 4.22% | 1.09% |
Frequently Asked Questions
With a correlation of 0.97, DFAR and XLRE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
XLRE has higher volatility (5.35%) compared to DFAR (5.04%). In terms of maximum drawdown, DFAR dropped -32.27% vs XLRE's -38.83%.
On 3-year performance, DFAR leads with 11.71% vs 11.31% for XLRE. On fees, XLRE is cheaper at 0.13% per year. On volatility, DFAR has been the lower-risk option at 5.04%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, DFAR has performed better with a 11.71% return vs 11.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLRE is cheaper with a 0.13% expense ratio, compared with 0.19% for DFAR.
XLRE has the higher dividend yield at 3.15%, compared with 2.68% for DFAR.
They also come from different issuers: Dimensional and State Street. Their fees differ too: 0.19% for DFAR and 0.13% for XLRE.
DFAR currently has the higher Sharpe Ratio (0.98 vs 0.70), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
Find the right allocation for DFAR and XLRE
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer