REZ vs. XLRE
REZ (iShares Residential and Multisector Real Estate ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both REIT funds - REZ tracks the FTSE NAREIT All Residential Capped Index while XLRE tracks the Real Estate Select Sector Index. Both are passively managed. Over the past 10 years, REZ returned 6.74%/yr vs 6.35%/yr for XLRE. Their correlation of 0.89 means they have usually moved in the same direction. REZ charges 0.48%/yr vs 0.13%/yr for XLRE.
Performance
REZ vs. XLRE - Performance Comparison
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Returns By Period
In the year-to-date period, REZ achieves a 16.94% return, which is significantly higher than XLRE's 13.43% return. Over the past 10 years, REZ has outperformed XLRE with an annualized return of 6.74%, while XLRE has yielded a comparatively lower 6.35% 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%
XLRE
- 1D
- -0.51%
- 1M
- 0.87%
- 6M
- 10.48%
- YTD
- 13.43%
- 1Y
- 12.92%
- 3Y*
- 9.41%
- 5Y*
- 2.81%
- 10Y*
- 6.35%
- ALL TIME*
- 7.45%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $3.79M | $3.86M | $3.20M | |
| $222.98M | $209.86M | $225.46M |
REZ vs. XLRE - 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% |
XLRE Real Estate Select Sector SPDR Fund | 13.43% | 2.63% | 5.09% | 12.36% | -26.25% | 46.10% | -2.18% | 28.68% | -2.39% | 10.69% |
Correlation
The correlation between REZ and XLRE is 0.86, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.86 |
Correlation (3Y) Balances recent behavior with more history. | 0.90 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.91 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.90 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.89 |
The correlation between REZ and XLRE has been stable across timeframes, ranging from 0.86 to 0.91 - a consistent structural relationship.
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Return for Risk
REZ vs. XLRE — Risk / Return Rank
REZ
XLRE
REZ vs. XLRE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Residential and Multisector Real Estate ETF (REZ) 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.
| REZ | XLRE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.49 | ||
| Sortino ratioReturn per unit of downside risk | +0.61 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.16 | +0.08 |
| Calmar ratioReturn relative to maximum drawdown | 2.43 | 1.52 | +0.91 |
| Martin ratioReturn relative to average drawdown | 7.59 | 4.43 | +3.16 |
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Drawdowns
REZ vs. XLRE - Drawdown Comparison
The maximum REZ drawdown since its inception was -66.87%, which is greater than XLRE's maximum drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for REZ and XLRE.
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Drawdown Indicators
| REZ | XLRE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -66.87% | -38.83% | -28.04% |
Max Drawdown (1Y)Largest decline over 1 year | -8.76% | -8.33% | -0.43% |
Max Drawdown (3Y)Largest decline over 3 years | -15.28% | -16.57% | +1.29% |
Max Drawdown (5Y)Largest decline over 5 years | -35.05% | -34.12% | -0.93% |
Max Drawdown (10Y)Largest decline over 10 years | -44.15% | -38.83% | -5.32% |
Current DrawdownCurrent decline from peak | -3.23% | -2.04% | -1.19% |
Average DrawdownAverage peak-to-trough decline | -12.59% | -9.48% | -3.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.80% | 2.85% | -0.05% |
Volatility
REZ vs. XLRE - Volatility Comparison
iShares Residential and Multisector Real Estate ETF (REZ) has a higher volatility of 5.95% compared to Real Estate Select Sector SPDR Fund (XLRE) at 4.51%. This indicates that REZ's price experiences larger fluctuations and is considered to be riskier than XLRE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| REZ | XLRE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.95% | 4.51% | +1.44% |
Volatility (6M)Calculated over the trailing 6-month period | 12.35% | 11.11% | +1.24% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.55% | 14.22% | +1.33% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.06% | 19.18% | -0.12% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.62% | 20.46% | +1.16% |
REZ vs. XLRE - Expense Ratio Comparison
REZ has a 0.48% expense ratio, which is higher than XLRE's 0.13% expense ratio.
Dividends
REZ vs. XLRE - Dividend Comparison
REZ's dividend yield for the trailing twelve months is around 1.96%, less than XLRE's 3.12% 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% |
XLRE Real Estate Select Sector SPDR Fund | 3.12% | 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
REZ and XLRE have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
REZ has higher volatility (5.95%) compared to XLRE (4.51%). In terms of maximum drawdown, REZ dropped -66.87% vs XLRE's -38.83%.
On 10-year performance, REZ leads with 6.74% vs 6.35% for XLRE. On fees, XLRE is cheaper at 0.13% per year. On volatility, XLRE has been the lower-risk option at 4.51%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, REZ has performed better with a 6.74% return vs 6.35%. 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 0.48% for REZ.
XLRE has the higher dividend yield at 3.12%, compared with 1.96% for REZ.
REZ tracks FTSE NAREIT All Residential Capped Index, while XLRE tracks Real Estate Select Sector Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.48% for REZ and 0.13% for XLRE.
REZ currently has the higher Sharpe Ratio (1.38 vs 0.90), 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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