REZ vs. XLE
REZ (iShares Residential Real Estate ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - REZ is a REIT fund tracking the FTSE NAREIT All Residential Capped Index, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, REZ returned 6.81%/yr vs 9.37%/yr for XLE. At a 0.32 correlation, their price movements are largely independent. REZ charges 0.48%/yr vs 0.08%/yr for XLE.
Performance
REZ vs. XLE - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, REZ achieves a 11.57% return, which is significantly lower than XLE's 23.49% return. Over the past 10 years, REZ has underperformed XLE with an annualized return of 6.81%, while XLE has yielded a comparatively higher 9.37% annualized return.
REZ
- 1D
- 1.85%
- 1M
- 0.19%
- YTD
- 11.57%
- 6M
- 12.05%
- 1Y
- 12.95%
- 3Y*
- 12.29%
- 5Y*
- 4.34%
- 10Y*
- 6.81%
XLE
- 1D
- 0.74%
- 1M
- -7.80%
- YTD
- 23.49%
- 6M
- 24.07%
- 1Y
- 30.55%
- 3Y*
- 15.73%
- 5Y*
- 18.87%
- 10Y*
- 9.37%
REZ vs. XLE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
REZ iShares Residential Real Estate ETF | 11.57% | 4.80% | 12.73% | 10.97% | -28.31% | 47.86% | -6.62% | 24.49% | 3.89% | 3.87% |
XLE State Street Energy Select Sector SPDR ETF | 23.49% | 7.88% | 5.56% | -0.63% | 64.32% | 53.28% | -32.67% | 11.74% | -18.22% | -0.89% |
Correlation
The correlation between REZ and XLE is 0.09, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.09 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.21 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.22 |
Correlation (All Time) Calculated using the full available price history since May 4, 2007 | 0.32 |
Over the past year, the correlation between REZ and XLE has dropped to 0.09 - well below their long-term average of 0.32, suggesting their price drivers have been diverging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
REZ vs. XLE — Risk / Return Rank
REZ
XLE
REZ vs. XLE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Residential Real Estate ETF (REZ) and State Street Energy Select Sector SPDR ETF (XLE). 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.
| REZ | XLE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.61 | ||
| Sortino ratioReturn per unit of downside risk | -0.76 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.25 | -0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.48 | 2.18 | -0.70 |
| Martin ratioReturn relative to average drawdown | 4.49 | 6.53 | -2.04 |
Loading charts...
Drawdowns
REZ vs. XLE - Drawdown Comparison
The maximum REZ drawdown since its inception was -66.87%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for REZ and XLE.
Loading charts...
Drawdown Indicators
| REZ | XLE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -66.87% | -71.26% | +4.39% |
Max Drawdown (1Y)Largest decline over 1 year | -8.76% | -14.05% | +5.29% |
Max Drawdown (3Y)Largest decline over 3 years | -18.39% | -20.14% | +1.75% |
Max Drawdown (5Y)Largest decline over 5 years | -35.05% | -26.04% | -9.01% |
Max Drawdown (10Y)Largest decline over 10 years | -44.15% | -66.81% | +22.66% |
Current DrawdownCurrent decline from peak | -0.64% | -12.32% | +11.68% |
Average DrawdownAverage peak-to-trough decline | -12.66% | -17.96% | +5.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.89% | 4.69% | -1.80% |
Volatility
REZ vs. XLE - Volatility Comparison
The current volatility for iShares Residential Real Estate ETF (REZ) is 6.03%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 7.12%. This indicates that REZ experiences smaller price fluctuations and is considered to be less risky than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| REZ | XLE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.03% | 7.12% | -1.09% |
Volatility (6M)Calculated over the trailing 6-month period | 11.55% | 16.82% | -5.27% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.07% | 20.93% | -5.86% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.00% | 25.98% | -6.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.58% | 29.60% | -8.02% |
REZ vs. XLE - Expense Ratio Comparison
REZ has a 0.48% expense ratio, which is higher than XLE's 0.08% expense ratio.
Dividends
REZ vs. XLE - Dividend Comparison
REZ's dividend yield for the trailing twelve months is around 2.06%, less than XLE's 2.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
REZ iShares Residential Real Estate ETF | 2.06% | 2.74% | 2.26% | 2.94% | 3.37% | 1.81% | 3.17% | 2.90% | 3.63% | 3.57% | 5.55% | 3.18% |
XLE State Street Energy Select Sector SPDR ETF | 2.79% | 3.28% | 3.36% | 3.55% | 3.68% | 4.21% | 5.62% | 6.72% | 3.54% | 3.03% | 2.26% | 3.39% |
Frequently Asked Questions
REZ and XLE have a correlation of 0.09, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLE has higher volatility (7.12%) compared to REZ (6.03%). In terms of maximum drawdown, REZ dropped -66.87% vs XLE's -71.26%.
On 10-year performance, XLE leads with 9.37% vs 6.81% for REZ. On fees, XLE is cheaper at 0.08% per year. On volatility, REZ has been the lower-risk option at 6.03%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLE has performed better with a 9.37% return vs 6.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLE is cheaper with a 0.08% expense ratio, compared with 0.48% for REZ.
XLE has the higher dividend yield at 2.79%, compared with 2.06% for REZ.
REZ is categorized as REIT, while XLE is Energy Equities. REZ tracks FTSE NAREIT All Residential Capped Index, while XLE tracks Energy Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.48% for REZ and 0.08% for XLE.
XLE currently has the higher Sharpe Ratio (1.48 vs 0.87), 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.
Find the right allocation for REZ and XLE
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer