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 13.44%/yr vs 6.29%/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 0.36% return, which is significantly lower than XLRE's 12.50% return. Over the past 10 years, ITB has outperformed XLRE with an annualized return of 13.44%, while XLRE has yielded a comparatively lower 6.29% annualized return.
ITB
- 1D
- -1.49%
- 1M
- -0.51%
- 6M
- -10.42%
- YTD
- 0.36%
- 1Y
- -1.85%
- 3Y*
- 3.64%
- 5Y*
- 8.49%
- 10Y*
- 13.44%
XLRE
- 1D
- 0.56%
- 1M
- -0.59%
- 6M
- 11.76%
- YTD
- 12.50%
- 1Y
- 11.24%
- 3Y*
- 8.48%
- 5Y*
- 2.76%
- 10Y*
- 6.29%
ITB vs. XLRE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 0.36% | -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 | 12.50% | 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 0.51, 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 | 0.51 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.57 |
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 | -0.85 | ||
| Sortino ratioReturn per unit of downside risk | -1.01 | ||
| Omega ratioGain probability vs. loss probability | 1.02 | 1.14 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | -0.07 | 1.35 | -1.43 |
| Martin ratioReturn relative to average drawdown | -0.13 | 3.72 | -3.85 |
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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 | -23.92% | -1.19% | -22.73% |
Average DrawdownAverage peak-to-trough decline | -37.02% | -9.52% | -27.50% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.00% | 3.03% | +10.97% |
Volatility
ITB vs. XLRE - Volatility Comparison
iShares U.S. Home Construction ETF (ITB) has a higher volatility of 10.84% compared to Real Estate Select Sector SPDR Fund (XLRE) at 5.20%. 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 | 10.84% | 5.20% | +5.64% |
Volatility (6M)Calculated over the trailing 6-month period | 22.25% | 11.06% | +11.19% |
Volatility (1Y)Calculated over the trailing 1-year period | 30.26% | 14.31% | +15.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 29.51% | 19.17% | +10.34% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 30.14% | 20.45% | +9.69% |
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 0.67%, less than XLRE's 3.14% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 0.67% | 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 | 3.14% | 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 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
ITB has higher volatility (10.84%) compared to XLRE (5.20%). In terms of maximum drawdown, ITB dropped -86.53% vs XLRE's -38.83%.
On 10-year performance, ITB leads with 13.44% vs 6.29% for XLRE. On fees, XLRE is cheaper at 0.13% per year. On volatility, XLRE has been the lower-risk option at 5.20%. 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 13.44% return vs 6.29%. 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 3.14%, compared with 0.67% 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 (0.79 vs -0.06), 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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