VO vs. XLRE
VO (Vanguard Mid-Cap ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both exchange-traded funds - VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid Cap Index, while XLRE is a REIT fund tracking the Real Estate Select Sector Index. Both are passively managed. Over the past 10 years, VO returned 11.77%/yr vs 7.15%/yr for XLRE. A 0.62 correlation means they provide meaningful diversification when combined. VO charges 0.03%/yr vs 0.13%/yr for XLRE.
Performance
VO vs. XLRE - Performance Comparison
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Returns By Period
In the year-to-date period, VO achieves a 10.43% return, which is significantly lower than XLRE's 13.17% return. Over the past 10 years, VO has outperformed XLRE with an annualized return of 11.77%, while XLRE has yielded a comparatively lower 7.15% annualized return.
VO
- 1D
- 0.97%
- 1M
- 2.97%
- YTD
- 10.43%
- 6M
- 9.31%
- 1Y
- 19.60%
- 3Y*
- 15.74%
- 5Y*
- 7.79%
- 10Y*
- 11.77%
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%
VO vs. XLRE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VO Vanguard Mid-Cap ETF | 10.43% | 11.62% | 15.31% | 16.03% | -18.73% | 24.70% | 18.10% | 30.98% | -9.24% | 19.28% |
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 VO and XLRE is 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.55 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.64 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.62 |
The correlation between VO and XLRE shifts across timeframes, from 0.55 (1 year) to 0.69 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
VO vs. XLRE — Risk / Return Rank
VO
XLRE
VO vs. XLRE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mid-Cap ETF (VO) 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.
| VO | XLRE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.62 | ||
| Sortino ratioReturn per unit of downside risk | +0.88 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.15 | +0.10 |
| Calmar ratioReturn relative to maximum drawdown | 2.23 | 1.34 | +0.89 |
| Martin ratioReturn relative to average drawdown | 8.44 | 3.69 | +4.74 |
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Drawdowns
VO vs. XLRE - Drawdown Comparison
The maximum VO drawdown since its inception was -58.87%, which is greater than XLRE's maximum drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for VO and XLRE.
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Drawdown Indicators
| VO | XLRE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -58.87% | -38.83% | -20.04% |
Max Drawdown (1Y)Largest decline over 1 year | -8.17% | -8.33% | +0.16% |
Max Drawdown (3Y)Largest decline over 3 years | -19.02% | -16.74% | -2.28% |
Max Drawdown (5Y)Largest decline over 5 years | -27.57% | -34.12% | +6.55% |
Max Drawdown (10Y)Largest decline over 10 years | -39.37% | -38.83% | -0.54% |
Current DrawdownCurrent decline from peak | -0.45% | 0.00% | -0.45% |
Average DrawdownAverage peak-to-trough decline | -7.85% | -9.58% | +1.73% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.16% | 3.03% | -0.87% |
Volatility
VO vs. XLRE - Volatility Comparison
The current volatility for Vanguard Mid-Cap ETF (VO) is 4.31%, while Real Estate Select Sector SPDR Fund (XLRE) has a volatility of 4.81%. This indicates that VO 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
| VO | XLRE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.31% | 4.81% | -0.50% |
Volatility (6M)Calculated over the trailing 6-month period | 9.71% | 10.20% | -0.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.74% | 13.83% | -1.09% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.65% | 19.10% | -1.45% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.96% | 20.42% | -1.46% |
VO vs. XLRE - Expense Ratio Comparison
VO has a 0.03% 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
VO vs. XLRE - Dividend Comparison
VO's dividend yield for the trailing twelve months is around 1.36%, less than XLRE's 3.08% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VO Vanguard Mid-Cap ETF | 1.36% | 1.52% | 1.49% | 1.52% | 1.60% | 1.12% | 1.45% | 1.48% | 1.82% | 1.35% | 1.45% | 1.47% |
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
VO and XLRE have a correlation of 0.55, 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 VO (4.31%). In terms of maximum drawdown, VO dropped -58.87% vs XLRE's -38.83%.
On 10-year performance, VO leads with 11.77% vs 7.15% for XLRE. On fees, VO is cheaper at 0.03% per year. On volatility, VO has been the lower-risk option at 4.31%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VO has performed better with a 11.77% return vs 7.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VO is cheaper with a 0.03% expense ratio, compared with 0.13% for XLRE.
XLRE has the higher dividend yield at 3.08%, compared with 1.36% for VO.
VO is categorized as Mid Cap Blend Equities, while XLRE is REIT. VO tracks CRSP US Mid Cap Index, while XLRE tracks Real Estate Select Sector Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.03% for VO and 0.13% for XLRE.
VO currently has the higher Sharpe Ratio (1.43 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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