ITB vs. XLRE
ITB (iShares U.S. Home Construction ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both exchange-traded funds - ITB is a Building & Construction fund tracking the Dow Jones U.S. Select Home Construction Index, while XLRE is a REIT fund tracking the Real Estate Select Sector Index. Both are passively managed. Over the past 10 years, ITB returned 14.54%/yr vs 6.92%/yr for XLRE. A 0.51 correlation means they provide meaningful diversification when combined. ITB charges 0.38%/yr vs 0.13%/yr for XLRE.
Performance
ITB vs. XLRE - Performance Comparison
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Returns By Period
In the year-to-date period, ITB achieves a 1.43% return, which is significantly lower than XLRE's 12.35% return. Over the past 10 years, ITB has outperformed XLRE with an annualized return of 14.54%, while XLRE has yielded a comparatively lower 6.92% annualized return.
ITB
- 1D
- -0.01%
- 1M
- 7.17%
- YTD
- 1.43%
- 6M
- 0.59%
- 1Y
- 5.88%
- 3Y*
- 6.76%
- 5Y*
- 8.33%
- 10Y*
- 14.54%
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%
ITB vs. XLRE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 1.43% | -5.26% | 2.06% | 68.91% | -26.26% | 49.25% | 26.42% | 48.70% | -30.92% | 59.65% |
XLRE Real Estate Select Sector SPDR Fund | 12.35% | 2.63% | 5.09% | 12.36% | -26.25% | 46.10% | -2.18% | 28.68% | -2.39% | 10.69% |
Correlation
The correlation between ITB and XLRE is 0.53, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.53 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.58 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.51 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.51 |
The correlation between ITB and XLRE has been stable across timeframes, ranging from 0.51 to 0.59 - a consistent structural relationship.
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Return for Risk
ITB vs. XLRE — Risk / Return Rank
ITB
XLRE
ITB vs. XLRE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Home Construction ETF (ITB) 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.
| ITB | XLRE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.50 | ||
| Sortino ratioReturn per unit of downside risk | -0.46 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.13 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 0.23 | 1.18 | -0.95 |
| Martin ratioReturn relative to average drawdown | 0.43 | 3.23 | -2.80 |
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Drawdowns
ITB vs. XLRE - Drawdown Comparison
The maximum ITB drawdown since its inception was -86.53%, which is greater than XLRE's maximum drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for ITB and XLRE.
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Drawdown Indicators
| ITB | XLRE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -86.53% | -38.83% | -47.70% |
Max Drawdown (1Y)Largest decline over 1 year | -26.04% | -8.33% | -17.71% |
Max Drawdown (3Y)Largest decline over 3 years | -33.35% | -16.74% | -16.61% |
Max Drawdown (5Y)Largest decline over 5 years | -40.55% | -34.12% | -6.43% |
Max Drawdown (10Y)Largest decline over 10 years | -52.10% | -38.83% | -13.27% |
Current DrawdownCurrent decline from peak | -23.11% | -0.72% | -22.39% |
Average DrawdownAverage peak-to-trough decline | -37.06% | -9.56% | -27.50% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 13.67% | 3.04% | +10.63% |
Volatility
ITB vs. XLRE - Volatility Comparison
iShares U.S. Home Construction ETF (ITB) has a higher volatility of 8.66% compared to Real Estate Select Sector SPDR Fund (XLRE) at 5.35%. This indicates that ITB'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
| ITB | XLRE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.66% | 5.35% | +3.31% |
Volatility (6M)Calculated over the trailing 6-month period | 21.41% | 10.63% | +10.78% |
Volatility (1Y)Calculated over the trailing 1-year period | 29.94% | 14.17% | +15.77% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 29.37% | 19.13% | +10.24% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 30.08% | 20.45% | +9.63% |
ITB vs. XLRE - Expense Ratio Comparison
ITB has a 0.38% expense ratio, which is higher than XLRE's 0.13% expense ratio.
Dividends
ITB vs. XLRE - Dividend Comparison
ITB's dividend yield for the trailing twelve months is around 0.66%, less than XLRE's 3.15% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 0.66% | 1.67% | 0.46% | 0.48% | 0.86% | 0.37% | 0.46% | 0.50% | 0.63% | 0.28% | 0.43% | 0.34% |
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
ITB and XLRE have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ITB has higher volatility (8.66%) compared to XLRE (5.35%). In terms of maximum drawdown, ITB dropped -86.53% vs XLRE's -38.83%.
On 10-year performance, ITB leads with 14.54% vs 6.92% for XLRE. On fees, XLRE is cheaper at 0.13% per year. On volatility, XLRE has been the lower-risk option at 5.35%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, ITB has performed better with a 14.54% return vs 6.92%. 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 0.38% for ITB.
XLRE has the higher dividend yield at 3.15%, compared with 0.66% for ITB.
ITB is categorized as Building & Construction, while XLRE is REIT. ITB tracks Dow Jones U.S. Select Home Construction Index, while XLRE tracks Real Estate Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.38% for ITB and 0.13% for XLRE.
XLRE currently has the higher Sharpe Ratio (0.70 vs 0.20), 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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