EEM vs. XLRE
EEM (iShares MSCI Emerging Markets ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both exchange-traded funds - EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net), while XLRE is a REIT fund tracking the Real Estate Select Sector Index. Both are passively managed. Over the past 10 years, EEM returned 9.91%/yr vs 7.15%/yr for XLRE. At a 0.37 correlation, their price movements are largely independent. EEM charges 0.72%/yr vs 0.13%/yr for XLRE.
Performance
EEM vs. XLRE - Performance Comparison
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Returns By Period
In the year-to-date period, EEM achieves a 24.07% return, which is significantly higher than XLRE's 13.17% return. Over the past 10 years, EEM has outperformed XLRE with an annualized return of 9.91%, while XLRE has yielded a comparatively lower 7.15% annualized return.
EEM
- 1D
- 0.56%
- 1M
- 0.74%
- YTD
- 24.07%
- 6M
- 26.94%
- 1Y
- 47.57%
- 3Y*
- 21.60%
- 5Y*
- 6.56%
- 10Y*
- 9.91%
XLRE
- 1D
- 0.98%
- 1M
- 3.30%
- YTD
- 13.17%
- 6M
- 13.29%
- 1Y
- 12.05%
- 3Y*
- 10.41%
- 5Y*
- 3.32%
- 10Y*
- 7.15%
EEM vs. XLRE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 24.07% | 33.98% | 6.49% | 8.95% | -20.56% | -3.63% | 17.02% | 18.22% | -15.31% | 37.26% |
XLRE Real Estate Select Sector SPDR Fund | 13.17% | 2.63% | 5.09% | 12.36% | -26.25% | 46.10% | -2.18% | 28.68% | -2.39% | 10.69% |
Correlation
The correlation between EEM and XLRE is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.22 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.33 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.38 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.37 |
The correlation between EEM and XLRE shifts across timeframes, from 0.22 (1 year) to 0.38 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
EEM vs. XLRE — Risk / Return Rank
EEM
XLRE
EEM vs. XLRE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) 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.
| EEM | XLRE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.29 | ||
| Sortino ratioReturn per unit of downside risk | +1.55 | ||
| Omega ratioGain probability vs. loss probability | 1.40 | 1.15 | +0.25 |
| Calmar ratioReturn relative to maximum drawdown | 3.36 | 1.34 | +2.02 |
| Martin ratioReturn relative to average drawdown | 12.38 | 3.69 | +8.69 |
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Drawdowns
EEM vs. XLRE - Drawdown Comparison
The maximum EEM drawdown since its inception was -66.43%, which is greater than XLRE's maximum drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for EEM and XLRE.
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Drawdown Indicators
| EEM | XLRE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -66.43% | -38.83% | -27.60% |
Max Drawdown (1Y)Largest decline over 1 year | -13.52% | -8.33% | -5.19% |
Max Drawdown (3Y)Largest decline over 3 years | -17.29% | -16.74% | -0.55% |
Max Drawdown (5Y)Largest decline over 5 years | -37.49% | -34.12% | -3.37% |
Max Drawdown (10Y)Largest decline over 10 years | -39.82% | -38.83% | -0.99% |
Current DrawdownCurrent decline from peak | -4.12% | 0.00% | -4.12% |
Average DrawdownAverage peak-to-trough decline | -16.00% | -9.58% | -6.42% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.67% | 3.03% | +0.64% |
Volatility
EEM vs. XLRE - Volatility Comparison
iShares MSCI Emerging Markets ETF (EEM) has a higher volatility of 10.80% compared to Real Estate Select Sector SPDR Fund (XLRE) at 4.81%. This indicates that EEM's price experiences larger fluctuations and is considered to be riskier than XLRE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| EEM | XLRE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.80% | 4.81% | +5.99% |
Volatility (6M)Calculated over the trailing 6-month period | 19.39% | 10.20% | +9.19% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.64% | 13.83% | +7.81% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.26% | 19.10% | +0.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.64% | 20.42% | +0.22% |
EEM vs. XLRE - Expense Ratio Comparison
EEM has a 0.72% expense ratio, which is higher than XLRE's 0.13% expense ratio.
Dividends
EEM vs. XLRE - Dividend Comparison
EEM's dividend yield for the trailing twelve months is around 1.79%, less than XLRE's 3.08% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 1.79% | 2.22% | 2.43% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% |
XLRE Real Estate Select Sector SPDR Fund | 3.08% | 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
EEM and XLRE have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EEM has higher volatility (10.80%) compared to XLRE (4.81%). In terms of maximum drawdown, EEM dropped -66.43% vs XLRE's -38.83%.
On 10-year performance, EEM leads with 9.91% vs 7.15% for XLRE. On fees, XLRE is cheaper at 0.13% per year. On volatility, XLRE has been the lower-risk option at 4.81%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, EEM has performed better with a 9.91% return vs 7.15%. 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 0.72% for EEM.
XLRE has the higher dividend yield at 3.08%, compared with 1.79% for EEM.
EEM is categorized as Emerging Markets Diversified, while XLRE is REIT. EEM tracks MSCI Emerging Markets Index (Net), while XLRE tracks Real Estate Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.72% for EEM and 0.13% for XLRE.
EEM currently has the higher Sharpe Ratio (2.10 vs 0.81), 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.
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