IYR vs. XLP
IYR (iShares U.S. Real Estate ETF) and XLP (State Street Consumer Staples Select Sector SPDR ETF) are both exchange-traded funds - IYR is a REIT fund tracking the Dow Jones U.S. Real Estate Index, while XLP is a Consumer Staples Equities fund tracking the Consumer Staples Select Sector Index. Both are passively managed. Over the past 10 years, IYR returned 5.97%/yr vs 7.60%/yr for XLP. A 0.54 correlation means they provide meaningful diversification when combined. IYR charges 0.42%/yr vs 0.08%/yr for XLP.
Performance
IYR vs. XLP - Performance Comparison
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Returns By Period
The year-to-date returns for both stocks are quite close, with IYR having a 11.47% return and XLP slightly lower at 11.10%. Over the past 10 years, IYR has underperformed XLP with an annualized return of 5.97%, while XLP has yielded a comparatively higher 7.60% annualized return.
IYR
- 1D
- 0.89%
- 1M
- 3.00%
- YTD
- 11.47%
- 6M
- 11.46%
- 1Y
- 12.40%
- 3Y*
- 9.71%
- 5Y*
- 2.47%
- 10Y*
- 5.97%
XLP
- 1D
- 0.65%
- 1M
- 0.99%
- YTD
- 11.10%
- 6M
- 9.54%
- 1Y
- 8.93%
- 3Y*
- 8.26%
- 5Y*
- 6.65%
- 10Y*
- 7.60%
IYR vs. XLP - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IYR iShares U.S. Real Estate ETF | 11.47% | 3.38% | 4.41% | 11.89% | -25.51% | 38.74% | -5.23% | 28.21% | -4.33% | 9.31% |
XLP State Street Consumer Staples Select Sector SPDR ETF | 11.10% | 1.52% | 12.20% | -0.82% | -0.81% | 17.20% | 10.11% | 27.43% | -8.07% | 12.98% |
Correlation
The correlation between IYR and XLP is 0.50, 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 | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.58 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2000 | 0.54 |
The correlation between IYR and XLP has been stable across timeframes, ranging from 0.50 to 0.59 - a consistent structural relationship.
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Return for Risk
IYR vs. XLP — Risk / Return Rank
IYR
XLP
IYR vs. XLP - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Real Estate ETF (IYR) and State Street Consumer Staples Select Sector SPDR ETF (XLP). 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.
| IYR | XLP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.25 | ||
| Sortino ratioReturn per unit of downside risk | +0.30 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.11 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.34 | 0.79 | +0.55 |
| Martin ratioReturn relative to average drawdown | 4.19 | 1.52 | +2.67 |
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Drawdowns
IYR vs. XLP - Drawdown Comparison
The maximum IYR drawdown since its inception was -74.13%, which is greater than XLP's maximum drawdown of -35.90%. Use the drawdown chart below to compare losses from any high point for IYR and XLP.
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Drawdown Indicators
| IYR | XLP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -74.13% | -35.90% | -38.23% |
Max Drawdown (1Y)Largest decline over 1 year | -8.54% | -9.69% | +1.15% |
Max Drawdown (3Y)Largest decline over 3 years | -17.52% | -12.39% | -5.13% |
Max Drawdown (5Y)Largest decline over 5 years | -33.75% | -16.30% | -17.45% |
Max Drawdown (10Y)Largest decline over 10 years | -42.32% | -24.51% | -17.81% |
Current DrawdownCurrent decline from peak | 0.00% | -4.12% | +4.12% |
Average DrawdownAverage peak-to-trough decline | -12.89% | -7.06% | -5.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.73% | 5.01% | -2.28% |
Volatility
IYR vs. XLP - Volatility Comparison
iShares U.S. Real Estate ETF (IYR) has a higher volatility of 4.80% compared to State Street Consumer Staples Select Sector SPDR ETF (XLP) at 4.53%. This indicates that IYR's price experiences larger fluctuations and is considered to be riskier than XLP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYR | XLP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.80% | 4.53% | +0.27% |
Volatility (6M)Calculated over the trailing 6-month period | 9.87% | 10.14% | -0.27% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.58% | 12.90% | +0.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.76% | 13.34% | +5.42% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.34% | 14.75% | +5.59% |
IYR vs. XLP - Expense Ratio Comparison
IYR has a 0.42% expense ratio, which is higher than XLP's 0.08% expense ratio.
Dividends
IYR vs. XLP - Dividend Comparison
IYR's dividend yield for the trailing twelve months is around 2.15%, less than XLP's 2.53% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYR iShares U.S. Real Estate ETF | 2.15% | 2.48% | 2.57% | 2.75% | 2.92% | 2.06% | 2.58% | 3.05% | 3.53% | 3.73% | 4.41% | 3.92% |
XLP State Street Consumer Staples Select Sector SPDR ETF | 2.53% | 2.75% | 2.77% | 2.63% | 2.47% | 2.28% | 2.50% | 2.57% | 3.04% | 2.62% | 2.53% | 2.52% |
Frequently Asked Questions
IYR and XLP have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYR has higher volatility (4.80%) compared to XLP (4.53%). In terms of maximum drawdown, IYR dropped -74.13% vs XLP's -35.90%.
On 10-year performance, XLP leads with 7.60% vs 5.97% for IYR. On fees, XLP is cheaper at 0.08% per year. On volatility, XLP has been the lower-risk option at 4.53%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLP has performed better with a 7.60% return vs 5.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLP is cheaper with a 0.08% expense ratio, compared with 0.42% for IYR.
XLP has the higher dividend yield at 2.53%, compared with 2.15% for IYR.
IYR is categorized as REIT, while XLP is Consumer Staples Equities. IYR tracks Dow Jones U.S. Real Estate Index, while XLP tracks Consumer Staples Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.42% for IYR and 0.08% for XLP.
IYR currently has the higher Sharpe Ratio (0.84 vs 0.59), 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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