SPY vs. XLRE
SPY (State Street SPDR S&P 500 ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both exchange-traded funds - SPY is a S&P 500 fund tracking the S&P 500 Index, while XLRE is a REIT fund tracking the Real Estate Select Sector Index. Both are passively managed. Over the past 10 years, SPY returned 15.42%/yr vs 7.15%/yr for XLRE. A 0.55 correlation means they provide meaningful diversification when combined. SPY charges 0.09%/yr vs 0.13%/yr for XLRE.
Performance
SPY vs. XLRE - Performance Comparison
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Returns By Period
In the year-to-date period, SPY achieves a 9.07% return, which is significantly lower than XLRE's 13.17% return. Over the past 10 years, SPY has outperformed XLRE with an annualized return of 15.42%, while XLRE has yielded a comparatively lower 7.15% annualized return.
SPY
- 1D
- 0.54%
- 1M
- -0.86%
- YTD
- 9.07%
- 6M
- 9.42%
- 1Y
- 25.67%
- 3Y*
- 20.86%
- 5Y*
- 13.36%
- 10Y*
- 15.42%
XLRE
- 1D
- 0.98%
- 1M
- 3.30%
- YTD
- 13.17%
- 6M
- 13.29%
- 1Y
- 12.05%
- 3Y*
- 10.41%
- 5Y*
- 3.32%
- 10Y*
- 7.15%
SPY vs. XLRE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SPY State Street SPDR S&P 500 ETF | 9.07% | 17.72% | 24.89% | 26.18% | -18.18% | 28.73% | 18.33% | 31.22% | -4.57% | 21.71% |
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 SPY and XLRE is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.28 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.44 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.57 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.55 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.55 |
Over the past year, the correlation between SPY and XLRE has dropped to 0.28 - well below their long-term average of 0.55, suggesting their price drivers have been diverging.
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Return for Risk
SPY vs. XLRE — Risk / Return Rank
SPY
XLRE
SPY vs. XLRE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for State Street SPDR S&P 500 ETF (SPY) 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.
| SPY | XLRE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.17 | ||
| Sortino ratioReturn per unit of downside risk | +1.51 | ||
| Omega ratioGain probability vs. loss probability | 1.36 | 1.15 | +0.21 |
| Calmar ratioReturn relative to maximum drawdown | 2.74 | 1.34 | +1.40 |
| Martin ratioReturn relative to average drawdown | 12.39 | 3.69 | +8.70 |
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Drawdowns
SPY vs. XLRE - Drawdown Comparison
The maximum SPY drawdown since its inception was -55.19%, which is greater than XLRE's maximum drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for SPY and XLRE.
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Drawdown Indicators
| SPY | XLRE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -55.19% | -38.83% | -16.36% |
Max Drawdown (1Y)Largest decline over 1 year | -8.88% | -8.33% | -0.55% |
Max Drawdown (3Y)Largest decline over 3 years | -18.76% | -16.74% | -2.02% |
Max Drawdown (5Y)Largest decline over 5 years | -24.50% | -34.12% | +9.62% |
Max Drawdown (10Y)Largest decline over 10 years | -33.72% | -38.83% | +5.11% |
Current DrawdownCurrent decline from peak | -2.35% | 0.00% | -2.35% |
Average DrawdownAverage peak-to-trough decline | -9.04% | -9.58% | +0.54% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.97% | 3.03% | -1.06% |
Volatility
SPY vs. XLRE - Volatility Comparison
The current volatility for State Street SPDR S&P 500 ETF (SPY) is 4.34%, while Real Estate Select Sector SPDR Fund (XLRE) has a volatility of 4.81%. This indicates that SPY experiences smaller price fluctuations and is considered to be less risky 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
| SPY | XLRE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.34% | 4.81% | -0.47% |
Volatility (6M)Calculated over the trailing 6-month period | 9.58% | 10.20% | -0.62% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.29% | 13.83% | -1.54% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.12% | 19.10% | -1.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.96% | 20.42% | -2.46% |
SPY vs. XLRE - Expense Ratio Comparison
SPY has a 0.09% 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
SPY vs. XLRE - Dividend Comparison
SPY's dividend yield for the trailing twelve months is around 1.00%, less than XLRE's 3.08% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
SPY State Street SPDR S&P 500 ETF | 1.00% | 1.07% | 1.21% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% |
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
SPY and XLRE have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLRE has higher volatility (4.81%) compared to SPY (4.34%). In terms of maximum drawdown, SPY dropped -55.19% vs XLRE's -38.83%.
On 10-year performance, SPY leads with 15.42% vs 7.15% for XLRE. On fees, SPY is cheaper at 0.09% per year. On volatility, SPY has been the lower-risk option at 4.34%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, SPY has performed better with a 15.42% return vs 7.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
SPY is cheaper with a 0.09% expense ratio, compared with 0.13% for XLRE.
XLRE has the higher dividend yield at 3.08%, compared with 1.00% for SPY.
SPY is categorized as S&P 500, while XLRE is REIT. SPY tracks S&P 500 Index, while XLRE tracks Real Estate Select Sector Index. Their fees differ too: 0.09% for SPY and 0.13% for XLRE.
SPY currently has the higher Sharpe Ratio (1.98 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.
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