REZ vs. XLE
Compare and contrast key facts about iShares Residential Real Estate ETF (REZ) and Energy Select Sector SPDR Fund (XLE).
REZ and XLE are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. REZ is a passively managed fund by iShares that tracks the performance of the FTSE NAREIT All Residential Capped Index. It was launched on May 4, 2007. XLE is a passively managed fund by State Street that tracks the performance of the Energy Select Sector Index. It was launched on Dec 16, 1998. Both REZ and XLE are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: REZ or XLE.
Key characteristics
| REZ | XLE | |
|---|---|---|
| YTD Return | 19.70% | 14.60% |
| 1Y Return | 39.88% | 15.47% |
| 3Y Return (Ann) | 0.69% | 22.36% |
| 5Y Return (Ann) | 5.46% | 14.95% |
| 10Y Return (Ann) | 7.79% | 4.88% |
| Sharpe Ratio | 2.22 | 0.92 |
| Sortino Ratio | 3.17 | 1.33 |
| Omega Ratio | 1.38 | 1.17 |
| Calmar Ratio | 1.17 | 1.22 |
| Martin Ratio | 10.31 | 2.86 |
| Ulcer Index | 3.73% | 5.71% |
| Daily Std Dev | 17.32% | 17.81% |
| Max Drawdown | -66.84% | -71.54% |
| Current Drawdown | -5.98% | -2.82% |
Correlation
The correlation between REZ and XLE is 0.33, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
REZ vs. XLE - Performance Comparison
In the year-to-date period, REZ achieves a 19.70% return, which is significantly higher than XLE's 14.60% return. Over the past 10 years, REZ has outperformed XLE with an annualized return of 7.79%, while XLE has yielded a comparatively lower 4.88% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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REZ vs. XLE - Expense Ratio Comparison
REZ has a 0.48% expense ratio, which is higher than XLE's 0.13% expense ratio.
Risk-Adjusted Performance
REZ vs. XLE - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Residential Real Estate ETF (REZ) and Energy Select Sector SPDR Fund (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.
Dividends
REZ vs. XLE - Dividend Comparison
REZ's dividend yield for the trailing twelve months is around 2.21%, less than XLE's 3.18% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
REZ iShares Residential Real Estate ETF | 2.21% | 2.94% | 3.37% | 1.81% | 3.17% | 2.90% | 3.63% | 3.57% | 5.54% | 3.18% | 3.13% | 3.92% |
XLE Energy Select Sector SPDR Fund | 3.18% | 3.55% | 3.68% | 4.21% | 5.62% | 5.73% | 3.54% | 3.03% | 2.26% | 3.39% | 2.35% | 1.73% |
Drawdowns
REZ vs. XLE - Drawdown Comparison
The maximum REZ drawdown since its inception was -66.84%, smaller than the maximum XLE drawdown of -71.54%. Use the drawdown chart below to compare losses from any high point for REZ and XLE. For additional features, visit the drawdowns tool.
Volatility
REZ vs. XLE - Volatility Comparison
iShares Residential Real Estate ETF (REZ) and Energy Select Sector SPDR Fund (XLE) have volatilities of 5.82% and 5.94%, 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.