REZ vs. XLK
REZ (iShares Residential and Multisector Real Estate ETF) and XLK (State Street Technology Select Sector SPDR ETF) are both exchange-traded funds - REZ is a REIT fund tracking the FTSE NAREIT All Residential Capped Index, while XLK is a Technology Equities fund tracking the S&P Technology Select Sector Daily Capped 35/20 Index. Both are passively managed. Over the past 10 years, REZ returned 6.74%/yr vs 23.77%/yr for XLK. Their 0.40 correlation means their historical movements had little consistent relationship. REZ charges 0.48%/yr vs 0.08%/yr for XLK.
Performance
REZ vs. XLK - Performance Comparison
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Returns By Period
In the year-to-date period, REZ achieves a 16.94% return, which is significantly lower than XLK's 22.09% return. Over the past 10 years, REZ has underperformed XLK with an annualized return of 6.74%, while XLK has yielded a comparatively higher 23.77% annualized return.
REZ
- 1D
- 0.01%
- 1M
- -1.36%
- 6M
- 15.00%
- YTD
- 16.94%
- 1Y
- 20.55%
- 3Y*
- 12.14%
- 5Y*
- 3.89%
- 10Y*
- 6.74%
- ALL TIME*
- 7.32%
XLK
- 1D
- -0.22%
- 1M
- -2.90%
- 6M
- 22.17%
- YTD
- 22.09%
- 1Y
- 37.14%
- 3Y*
- 26.04%
- 5Y*
- 18.87%
- 10Y*
- 23.77%
- ALL TIME*
- 10.21%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $3.79M | $3.86M | $3.20M | |
| $1.61B | $1.67B | $2.22B |
REZ vs. XLK - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
REZ iShares Residential and Multisector Real Estate ETF | 16.94% | 4.80% | 12.73% | 10.97% | -28.31% | 47.86% | -6.62% | 24.49% | 3.89% | 3.87% |
XLK State Street Technology Select Sector SPDR ETF | 22.09% | 24.61% | 21.63% | 56.02% | -27.73% | 34.74% | 43.62% | 49.86% | -1.68% | 34.26% |
Correlation
The correlation between REZ and XLK is -0.17, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.17 |
Correlation (3Y) Balances recent behavior with more history. | 0.08 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.27 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.28 |
Correlation (All Time) Calculated using the full available price history since May 4, 2007 | 0.40 |
The correlation between REZ and XLK shifts across timeframes, from -0.17 (1 year) to 0.40 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
REZ vs. XLK — Risk / Return Rank
REZ
XLK
REZ vs. XLK - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Residential and Multisector Real Estate ETF (REZ) and State Street Technology Select Sector SPDR ETF (XLK). 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 | XLK | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.04 | ||
| Sortino ratioReturn per unit of downside risk | +0.06 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.23 | +0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.43 | 2.16 | +0.27 |
| Martin ratioReturn relative to average drawdown | 7.59 | 5.85 | +1.74 |
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Drawdowns
REZ vs. XLK - Drawdown Comparison
The maximum REZ drawdown since its inception was -66.87%, smaller than the maximum XLK drawdown of -82.05%. Use the drawdown chart below to compare losses from any high point for REZ and XLK.
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Drawdown Indicators
| REZ | XLK | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -66.87% | -82.05% | +15.18% |
Max Drawdown (1Y)Largest decline over 1 year | -8.76% | -15.92% | +7.16% |
Max Drawdown (3Y)Largest decline over 3 years | -15.40% | -25.66% | +10.26% |
Max Drawdown (5Y)Largest decline over 5 years | -35.05% | -33.56% | -1.49% |
Max Drawdown (10Y)Largest decline over 10 years | -44.15% | -33.56% | -10.59% |
Current DrawdownCurrent decline from peak | -3.23% | -11.43% | +8.20% |
Average DrawdownAverage peak-to-trough decline | -12.59% | -34.80% | +22.21% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.80% | 5.86% | -3.06% |
Volatility
REZ vs. XLK - Volatility Comparison
The current volatility for iShares Residential and Multisector Real Estate ETF (REZ) is 5.95%, while State Street Technology Select Sector SPDR ETF (XLK) has a volatility of 9.58%. This indicates that REZ experiences smaller price fluctuations and is considered to be less risky than XLK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| REZ | XLK | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.95% | 9.58% | -3.63% |
Volatility (6M)Calculated over the trailing 6-month period | 12.35% | 21.81% | -9.46% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.55% | 25.59% | -10.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.06% | 25.75% | -6.69% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.62% | 24.90% | -3.28% |
REZ vs. XLK - Expense Ratio Comparison
REZ has a 0.48% expense ratio, which is higher than XLK's 0.08% expense ratio.
Dividends
REZ vs. XLK - Dividend Comparison
REZ's dividend yield for the trailing twelve months is around 1.96%, more than XLK's 0.45% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
REZ iShares Residential and Multisector Real Estate ETF | 1.96% | 2.74% | 2.26% | 2.94% | 3.37% | 1.81% | 3.17% | 2.90% | 3.63% | 3.57% | 5.55% | 3.18% |
XLK State Street Technology Select Sector SPDR ETF | 0.45% | 0.54% | 0.66% | 0.76% | 1.04% | 0.65% | 0.92% | 1.16% | 1.60% | 1.37% | 1.74% | 1.79% |
Frequently Asked Questions
REZ and XLK have a correlation of -0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLK has higher volatility (9.58%) compared to REZ (5.95%). In terms of maximum drawdown, REZ dropped -66.87% vs XLK's -82.05%.
On 10-year performance, XLK leads with 23.77% vs 6.74% for REZ. On fees, XLK is cheaper at 0.08% per year. On volatility, REZ has been the lower-risk option at 5.95%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLK has performed better with a 23.77% return vs 6.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLK is cheaper with a 0.08% expense ratio, compared with 0.48% for REZ.
REZ has the higher dividend yield at 1.96%, compared with 0.45% for XLK.
REZ is categorized as REIT, while XLK is Technology Equities. REZ tracks FTSE NAREIT All Residential Capped Index, while XLK tracks S&P Technology Select Sector Daily Capped 35/20 Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.48% for REZ and 0.08% for XLK.
REZ currently has the higher Sharpe Ratio (1.38 vs 1.34), 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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