KBWD vs. XLRE
KBWD (Invesco KBW High Dividend Yield Financial ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both exchange-traded funds - KBWD is a Financials Equities fund tracking the KBW Nasdaq Financial Sector Dividend Yield Index, while XLRE is a REIT fund tracking the Real Estate Select Sector Index. Both are passively managed. Over the past 10 years, KBWD returned 5.25%/yr vs 7.15%/yr for XLRE. A 0.51 correlation means they provide meaningful diversification when combined. KBWD charges 1.24%/yr vs 0.13%/yr for XLRE.
Performance
KBWD vs. XLRE - Performance Comparison
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Returns By Period
In the year-to-date period, KBWD achieves a -3.74% return, which is significantly lower than XLRE's 13.17% return. Over the past 10 years, KBWD has underperformed XLRE with an annualized return of 5.25%, while XLRE has yielded a comparatively higher 7.15% annualized return.
KBWD
- 1D
- 0.80%
- 1M
- -1.25%
- YTD
- -3.74%
- 6M
- -4.15%
- 1Y
- 3.52%
- 3Y*
- 5.00%
- 5Y*
- 0.34%
- 10Y*
- 5.25%
XLRE
- 1D
- 0.98%
- 1M
- 3.30%
- YTD
- 13.17%
- 6M
- 13.29%
- 1Y
- 12.05%
- 3Y*
- 10.41%
- 5Y*
- 3.32%
- 10Y*
- 7.15%
KBWD vs. XLRE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
KBWD Invesco KBW High Dividend Yield Financial ETF | -3.74% | 5.59% | 4.30% | 20.21% | -19.14% | 31.89% | -15.58% | 20.72% | -8.70% | 12.06% |
XLRE Real Estate Select Sector SPDR Fund | 13.17% | 2.63% | 5.09% | 12.36% | -26.25% | 46.10% | -2.18% | 28.68% | -2.39% | 10.69% |
Correlation
The correlation between KBWD 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 | 0.59 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
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 KBWD and XLRE shifts across timeframes, from 0.51 (all time) to 0.61 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
KBWD vs. XLRE — Risk / Return Rank
KBWD
XLRE
KBWD vs. XLRE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco KBW High Dividend Yield Financial ETF (KBWD) 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.
| KBWD | XLRE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.68 | ||
| Sortino ratioReturn per unit of downside risk | -0.89 | ||
| Omega ratioGain probability vs. loss probability | 1.03 | 1.15 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 0.13 | 1.34 | -1.21 |
| Martin ratioReturn relative to average drawdown | 0.32 | 3.69 | -3.37 |
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Drawdowns
KBWD vs. XLRE - Drawdown Comparison
The maximum KBWD drawdown since its inception was -58.63%, which is greater than XLRE's maximum drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for KBWD and XLRE.
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Drawdown Indicators
| KBWD | XLRE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -58.63% | -38.83% | -19.80% |
Max Drawdown (1Y)Largest decline over 1 year | -15.05% | -8.33% | -6.72% |
Max Drawdown (3Y)Largest decline over 3 years | -19.65% | -16.74% | -2.91% |
Max Drawdown (5Y)Largest decline over 5 years | -30.74% | -34.12% | +3.38% |
Max Drawdown (10Y)Largest decline over 10 years | -58.63% | -38.83% | -19.80% |
Current DrawdownCurrent decline from peak | -10.58% | 0.00% | -10.58% |
Average DrawdownAverage peak-to-trough decline | -7.41% | -9.58% | +2.17% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.10% | 3.03% | +3.07% |
Volatility
KBWD vs. XLRE - Volatility Comparison
Invesco KBW High Dividend Yield Financial ETF (KBWD) and Real Estate Select Sector SPDR Fund (XLRE) have volatilities of 4.70% and 4.81%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| KBWD | XLRE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.70% | 4.81% | -0.11% |
Volatility (6M)Calculated over the trailing 6-month period | 12.36% | 10.20% | +2.16% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.59% | 13.83% | +1.76% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.89% | 19.10% | +0.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.25% | 20.42% | +2.83% |
KBWD vs. XLRE - Expense Ratio Comparison
KBWD has a 1.24% expense ratio, which is higher than XLRE's 0.13% expense ratio.
Dividends
KBWD vs. XLRE - Dividend Comparison
KBWD's dividend yield for the trailing twelve months is around 14.14%, more than XLRE's 3.08% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
KBWD Invesco KBW High Dividend Yield Financial ETF | 14.14% | 12.83% | 12.45% | 11.45% | 11.32% | 7.26% | 9.68% | 8.63% | 9.47% | 8.77% | 8.68% | 8.89% |
XLRE Real Estate Select Sector SPDR Fund | 3.08% | 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
KBWD 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.
XLRE has higher volatility (4.81%) compared to KBWD (4.70%). In terms of maximum drawdown, KBWD dropped -58.63% vs XLRE's -38.83%.
On 10-year performance, XLRE leads with 7.15% vs 5.25% for KBWD. On fees, XLRE is cheaper at 0.13% per year. On volatility, KBWD has been the lower-risk option at 4.70%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLRE has performed better with a 7.15% return vs 5.25%. 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 1.24% for KBWD.
KBWD has the higher dividend yield at 14.14%, compared with 3.08% for XLRE.
KBWD is categorized as Financials Equities, while XLRE is REIT. KBWD tracks KBW Nasdaq Financial Sector Dividend Yield Index, while XLRE tracks Real Estate Select Sector Index. They also come from different issuers: Invesco and State Street. Their fees differ too: 1.24% for KBWD and 0.13% for XLRE.
XLRE currently has the higher Sharpe Ratio (0.81 vs 0.13), 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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