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 13.43%/yr vs 6.35%/yr for XLRE. Their 0.51 correlation means they have sometimes moved together and sometimes differently. 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 -1.69% return, which is significantly lower than XLRE's 13.43% return. Over the past 10 years, ITB has outperformed XLRE with an annualized return of 13.43%, while XLRE has yielded a comparatively lower 6.35% annualized return.
ITB
- 1D
- -1.18%
- 1M
- -8.32%
- 6M
- -7.21%
- YTD
- -1.69%
- 1Y
- -5.06%
- 3Y*
- 2.79%
- 5Y*
- 6.57%
- 10Y*
- 13.43%
- ALL TIME*
- 4.08%
XLRE
- 1D
- -0.51%
- 1M
- 0.87%
- 6M
- 10.48%
- YTD
- 13.43%
- 1Y
- 12.92%
- 3Y*
- 9.41%
- 5Y*
- 2.81%
- 10Y*
- 6.35%
- ALL TIME*
- 7.45%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $179.18M | $195.32M | $218.82M | |
| $222.98M | $209.86M | $225.46M |
ITB vs. XLRE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | -1.69% | -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 | 13.43% | 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 have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.51 |
Correlation (3Y) Balances recent behavior with more history. | 0.58 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.59 |
Correlation (10Y) Provides a long-term view across more market conditions. | 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 | -0.98 | ||
| Sortino ratioReturn per unit of downside risk | -1.21 | ||
| Omega ratioGain probability vs. loss probability | 1.01 | 1.16 | -0.15 |
| Calmar ratioReturn relative to maximum drawdown | -0.10 | 1.52 | -1.62 |
| Martin ratioReturn relative to average drawdown | -0.17 | 4.43 | -4.61 |
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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% | -16.57% | -16.78% |
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 | -25.47% | -2.04% | -23.43% |
Average DrawdownAverage peak-to-trough decline | -36.98% | -9.48% | -27.50% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.54% | 2.85% | +11.69% |
Volatility
ITB vs. XLRE - Volatility Comparison
iShares U.S. Home Construction ETF (ITB) has a higher volatility of 8.79% compared to Real Estate Select Sector SPDR Fund (XLRE) at 4.51%. 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 | 8.79% | 4.51% | +4.28% |
Volatility (6M)Calculated over the trailing 6-month period | 22.03% | 11.11% | +10.92% |
Volatility (1Y)Calculated over the trailing 1-year period | 29.51% | 14.22% | +15.29% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 29.57% | 19.18% | +10.39% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 30.20% | 20.46% | +9.74% |
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 0.68%, less than XLRE's 3.12% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITB iShares U.S. Home Construction ETF | 0.68% | 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 | 3.12% | 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 (8.79%) compared to XLRE (4.51%). In terms of maximum drawdown, ITB dropped -86.53% vs XLRE's -38.83%.
On 10-year performance, ITB leads with 13.43% vs 6.35% for XLRE. On fees, XLRE is cheaper at 0.13% per year. On volatility, XLRE has been the lower-risk option at 4.51%. 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 13.43% return vs 6.35%. 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 3.12%, compared with 0.68% 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 (0.90 vs -0.09), 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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