IYR vs. XLY
IYR (iShares U.S. Real Estate ETF) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - IYR is a REIT fund tracking the Dow Jones U.S. Real Estate Index, while XLY is a Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index. Both are passively managed. Over the past 10 years, IYR returned 5.97%/yr vs 12.78%/yr for XLY. A 0.57 correlation means they provide meaningful diversification when combined. IYR charges 0.42%/yr vs 0.13%/yr for XLY.
Performance
IYR vs. XLY - Performance Comparison
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Returns By Period
In the year-to-date period, IYR achieves a 11.47% return, which is significantly higher than XLY's -2.16% return. Over the past 10 years, IYR has underperformed XLY with an annualized return of 5.97%, while XLY has yielded a comparatively higher 12.78% 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%
XLY
- 1D
- 0.26%
- 1M
- -1.74%
- YTD
- -2.16%
- 6M
- -3.01%
- 1Y
- 11.01%
- 3Y*
- 12.99%
- 5Y*
- 7.00%
- 10Y*
- 12.78%
IYR vs. XLY - 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% |
XLY Consumer Discretionary Select Sector SPDR Fund | -2.16% | 7.37% | 26.51% | 39.64% | -36.27% | 27.93% | 29.63% | 28.39% | 1.58% | 22.82% |
Correlation
The correlation between IYR and XLY is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.35 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.44 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.52 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.50 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2000 | 0.57 |
Over the past year, the correlation between IYR and XLY has dropped to 0.35 - well below their long-term average of 0.57, suggesting their price drivers have been diverging.
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Return for Risk
IYR vs. XLY — Risk / Return Rank
IYR
XLY
IYR vs. XLY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Real Estate ETF (IYR) and Consumer Discretionary Select Sector SPDR Fund (XLY). 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 | XLY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.30 | ||
| Sortino ratioReturn per unit of downside risk | +0.35 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.10 | +0.05 |
| Calmar ratioReturn relative to maximum drawdown | 1.34 | 0.67 | +0.67 |
| Martin ratioReturn relative to average drawdown | 4.19 | 2.05 | +2.14 |
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Drawdowns
IYR vs. XLY - Drawdown Comparison
The maximum IYR drawdown since its inception was -74.13%, which is greater than XLY's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for IYR and XLY.
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Drawdown Indicators
| IYR | XLY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -74.13% | -59.05% | -15.08% |
Max Drawdown (1Y)Largest decline over 1 year | -8.54% | -14.98% | +6.44% |
Max Drawdown (3Y)Largest decline over 3 years | -17.52% | -26.01% | +8.49% |
Max Drawdown (5Y)Largest decline over 5 years | -33.75% | -39.67% | +5.92% |
Max Drawdown (10Y)Largest decline over 10 years | -42.32% | -39.67% | -2.65% |
Current DrawdownCurrent decline from peak | 0.00% | -6.17% | +6.17% |
Average DrawdownAverage peak-to-trough decline | -12.89% | -9.55% | -3.34% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.73% | 4.88% | -2.15% |
Volatility
IYR vs. XLY - Volatility Comparison
The current volatility for iShares U.S. Real Estate ETF (IYR) is 4.80%, while Consumer Discretionary Select Sector SPDR Fund (XLY) has a volatility of 6.19%. This indicates that IYR experiences smaller price fluctuations and is considered to be less risky than XLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| IYR | XLY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.80% | 6.19% | -1.39% |
Volatility (6M)Calculated over the trailing 6-month period | 9.87% | 13.44% | -3.57% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.58% | 18.27% | -4.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.76% | 23.83% | -5.07% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.34% | 22.08% | -1.74% |
IYR vs. XLY - Expense Ratio Comparison
IYR has a 0.42% expense ratio, which is higher than XLY's 0.13% expense ratio.
Dividends
IYR vs. XLY - Dividend Comparison
IYR's dividend yield for the trailing twelve months is around 2.15%, more than XLY's 0.77% 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% |
XLY Consumer Discretionary Select Sector SPDR Fund | 0.77% | 0.79% | 0.72% | 0.78% | 1.00% | 0.53% | 0.82% | 1.28% | 1.34% | 1.20% | 1.71% | 1.43% |
Frequently Asked Questions
IYR and XLY have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLY has higher volatility (6.19%) compared to IYR (4.80%). In terms of maximum drawdown, IYR dropped -74.13% vs XLY's -59.05%.
On 10-year performance, XLY leads with 12.78% vs 5.97% for IYR. On fees, XLY is cheaper at 0.13% per year. On volatility, IYR has been the lower-risk option at 4.80%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLY has performed better with a 12.78% return vs 5.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLY is cheaper with a 0.13% expense ratio, compared with 0.42% for IYR.
IYR has the higher dividend yield at 2.15%, compared with 0.77% for XLY.
IYR is categorized as REIT, while XLY is Consumer Discretionary Equities. IYR tracks Dow Jones U.S. Real Estate Index, while XLY tracks Consumer Discretionary Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.42% for IYR and 0.13% for XLY.
IYR currently has the higher Sharpe Ratio (0.84 vs 0.55), 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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