SPEM vs. XLRE

Last updated Jun 13, 2026

SPEM (SPDR Portfolio Emerging Markets ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both exchange-traded funds - SPEM is a Emerging Markets Equities fund tracking the S&P Emerging Markets BMI, while XLRE is a REIT fund tracking the Real Estate Select Sector Index. Both are passively managed. Over the past 10 years, SPEM returned 9.63%/yr vs 7.15%/yr for XLRE. At a 0.38 correlation, their price movements are largely independent. SPEM charges 0.11%/yr vs 0.13%/yr for XLRE.

Performance

SPEM vs. XLRE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR Portfolio Emerging Markets ETF (SPEM) and Real Estate Select Sector SPDR Fund (XLRE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SPEM achieves a 11.32% return, which is significantly lower than XLRE's 13.17% return. Over the past 10 years, SPEM has outperformed XLRE with an annualized return of 9.63%, while XLRE has yielded a comparatively lower 7.15% annualized return.

SPEM

• 1D: 0.87%
• 1M: -0.21%
• YTD: 11.32%
• 6M: 13.11%
• 1Y: 25.79%
• 3Y*: 17.37%
• 5Y*: 5.60%
• 10Y*: 9.63%

XLRE

• 1D: 0.98%
• 1M: 2.60%
• YTD: 13.17%
• 6M: 13.29%
• 1Y: 11.15%
• 3Y*: 10.41%
• 5Y*: 3.32%
• 10Y*: 7.15%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SPEM vs. XLRE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SPEM SPDR Portfolio Emerging Markets ETF	11.32%	25.63%	11.40%	10.51%	-17.90%	1.51%	14.55%	19.69%	-13.26%	34.82%
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 SPEM and XLRE is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.38
Correlation (10Y) Calculated over the trailing 10-year period	0.37
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015	0.38

The correlation between SPEM and XLRE shifts across timeframes, from 0.27 (1 year) to 0.38 (5 years), reflecting how their relationship changes across market environments.

SPEM vs. XLRE - Sectors Allocation Comparison

Sectors	SPEM	XLRE
Technology	28.2%	-
Financial Services	20.2%	-
Consumer Cyclical	10.4%	-
Industrials	8.5%	-
Basic Materials	8.2%	1.9%
Communication Services	7.2%	-
Energy	4.7%	-
Healthcare	4.0%	-
Consumer Defensive	3.9%	-
Utilities	2.8%	-
Real Estate	1.9%	98.0%

Return for Risk

SPEM vs. XLRE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SPEM

SPEM Risk / Return Rank: 52
SPEM Sharpe Ratio Rank: 52
SPEM Sortino Ratio Rank: 49
SPEM Omega Ratio Rank: 53
SPEM Calmar Ratio Rank: 52
SPEM Martin Ratio Rank: 54

XLRE

XLRE Risk / Return Rank: 27
XLRE Sharpe Ratio Rank: 26
XLRE Sortino Ratio Rank: 24
XLRE Omega Ratio Rank: 24
XLRE Calmar Ratio Rank: 31
XLRE Martin Ratio Rank: 29

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SPEM vs. XLRE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR Portfolio Emerging Markets ETF (SPEM) 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.

	SPEM	XLRE	Difference
Sharpe ratio: Return per unit of total volatility	1.55	0.81	+0.74
Sortino ratio: Return per unit of downside risk	2.16	1.18	+0.98
Omega ratio: Gain probability vs. loss probability	1.29	1.15	+0.14
Calmar ratio: Return relative to maximum drawdown	2.28	1.34	+0.94
Martin ratio: Return relative to average drawdown	8.16	3.69	+4.47

SPEM vs. XLRE - Sharpe Ratio Comparison

The current SPEM Sharpe Ratio is 1.55, which is higher than the XLRE Sharpe Ratio of 0.81. The chart below compares the historical Sharpe Ratios of SPEM and XLRE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SPEM vs. XLRE - Drawdown Comparison

The maximum SPEM drawdown since its inception was -64.41%, which is greater than XLRE's maximum drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for SPEM and XLRE.

Drawdown Indicators

	SPEM	XLRE	Difference
Max Drawdown Largest peak-to-trough decline	-64.41%	-38.83%	-25.58%
Max Drawdown (1Y) Largest decline over 1 year	-11.36%	-8.33%	-3.03%
Max Drawdown (3Y) Largest decline over 3 years	-17.62%	-16.74%	-0.88%
Max Drawdown (5Y) Largest decline over 5 years	-31.75%	-34.12%	+2.37%
Max Drawdown (10Y) Largest decline over 10 years	-36.06%	-38.83%	+2.77%
Current Drawdown Current decline from peak	-2.40%	0.00%	-2.40%
Average Drawdown Average peak-to-trough decline	-14.73%	-9.58%	-5.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.17%	3.03%	+0.14%

Volatility

SPEM vs. XLRE - Volatility Comparison

SPDR Portfolio Emerging Markets ETF (SPEM) has a higher volatility of 6.87% compared to Real Estate Select Sector SPDR Fund (XLRE) at 4.81%. This indicates that SPEM'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.

Volatility by Period

	SPEM	XLRE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.87%	4.81%	+2.06%
Volatility (6M) Calculated over the trailing 6-month period	14.21%	10.20%	+4.01%
Volatility (1Y) Calculated over the trailing 1-year period	16.67%	13.83%	+2.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.26%	19.10%	-1.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.83%	20.42%	-1.59%

SPEM vs. XLRE - Expense Ratio Comparison

SPEM has a 0.11% expense ratio, which is lower than XLRE's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

SPEM vs. XLRE - Dividend Comparison

SPEM's dividend yield for the trailing twelve months is around 2.49%, less than XLRE's 3.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SPEM SPDR Portfolio Emerging Markets ETF	2.49%	2.77%	2.78%	2.80%	3.38%	3.14%	1.92%	2.94%	2.34%	1.12%	1.51%	2.40%
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

Can I hold both SPEM and XLRE in my portfolio?

SPEM and XLRE have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SPEM or XLRE?

SPEM has higher volatility (6.87%) compared to XLRE (4.81%). In terms of maximum drawdown, SPEM dropped -64.41% vs XLRE's -38.83%.

Which ETF is better, SPEM or XLRE?

On 10-year performance, SPEM leads with 9.63% vs 7.15% for XLRE. On fees, SPEM is cheaper at 0.11% per year. On volatility, XLRE has been the lower-risk option at 4.81%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SPEM or XLRE?

Over the 10-year period, SPEM has performed better with a 9.63% return vs 7.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SPEM or XLRE?

SPEM is cheaper with a 0.11% expense ratio, compared with 0.13% for XLRE.

Which ETF pays a higher dividend yield, SPEM or XLRE?

XLRE has the higher dividend yield at 3.08%, compared with 2.49% for SPEM.

What is the main difference between SPEM and XLRE?

SPEM is categorized as Emerging Markets Equities, while XLRE is REIT. SPEM tracks S&P Emerging Markets BMI, while XLRE tracks Real Estate Select Sector Index. Their fees differ too: 0.11% for SPEM and 0.13% for XLRE.

Which has better risk-adjusted returns?

SPEM currently has the higher Sharpe Ratio (1.55 vs 0.81), 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.