XFLT vs. REZ
XFLT (XAI Octagon Floating Rate & Alternative Income Term Trust) is a stock, while REZ (iShares Residential Real Estate ETF) is REIT fund tracking the FTSE NAREIT All Residential Capped Index. Over the past 5 years, XFLT returned -4.13%/yr vs 3.77%/yr for REZ. At a 0.17 correlation, their price movements are largely independent.
Performance
XFLT vs. REZ - Performance Comparison
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Returns By Period
In the year-to-date period, XFLT achieves a -18.37% return, which is significantly lower than REZ's 8.03% return.
XFLT
- 1D
- 1.00%
- 1M
- -3.89%
- YTD
- -18.37%
- 6M
- -13.32%
- 1Y
- -24.64%
- 3Y*
- -4.19%
- 5Y*
- -4.13%
- 10Y*
- —
REZ
- 1D
- -1.64%
- 1M
- -2.07%
- YTD
- 8.03%
- 6M
- 6.75%
- 1Y
- 10.29%
- 3Y*
- 9.61%
- 5Y*
- 3.77%
- 10Y*
- 6.63%
XFLT vs. REZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XFLT XAI Octagon Floating Rate & Alternative Income Term Trust | -18.37% | -15.35% | 7.37% | 30.40% | -20.30% | 31.30% | 5.13% | 22.05% | -15.10% | -5.55% |
REZ iShares Residential Real Estate ETF | 8.03% | 4.80% | 12.73% | 10.97% | -28.31% | 47.86% | -6.62% | 24.49% | 3.89% | -0.31% |
Correlation
The correlation between XFLT and REZ is 0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.06 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.14 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.16 |
Correlation (All Time) Calculated using the full available price history since Sep 28, 2017 | 0.17 |
The correlation between XFLT and REZ shifts across timeframes, from 0.06 (1 year) to 0.17 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
XFLT vs. REZ — Risk / Return Rank
XFLT
REZ
XFLT vs. REZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) and iShares Residential Real Estate ETF (REZ). 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.
| XFLT | REZ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.92 | ||
| Sortino ratioReturn per unit of downside risk | -2.80 | ||
| Omega ratioGain probability vs. loss probability | 0.79 | 1.13 | -0.34 |
| Calmar ratioReturn relative to maximum drawdown | -0.61 | 1.18 | -1.79 |
| Martin ratioReturn relative to average drawdown | -1.28 | 3.59 | -4.86 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| XFLT | REZ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -1.21 | 0.71 | -1.92 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.20 | 0.20 | -0.40 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.31 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.02 | 0.24 | -0.22 |
Drawdowns
XFLT vs. REZ - Drawdown Comparison
The maximum XFLT drawdown since its inception was -55.43%, smaller than the maximum REZ drawdown of -66.87%. Use the drawdown chart below to compare losses from any high point for XFLT and REZ.
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Drawdown Indicators
| XFLT | REZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -55.43% | -66.87% | +11.44% |
Max Drawdown (1Y)Largest decline over 1 year | -40.67% | -8.76% | -31.91% |
Max Drawdown (3Y)Largest decline over 3 years | -47.04% | -18.39% | -28.65% |
Max Drawdown (5Y)Largest decline over 5 years | -47.04% | -35.05% | -11.99% |
Max Drawdown (10Y)Largest decline over 10 years | — | -44.15% | — |
Current DrawdownCurrent decline from peak | -35.10% | -3.16% | -31.94% |
Average DrawdownAverage peak-to-trough decline | -14.40% | -12.68% | -1.72% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 19.31% | 2.87% | +16.44% |
Volatility
XFLT vs. REZ - Volatility Comparison
The current volatility for XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) is 3.46%, while iShares Residential Real Estate ETF (REZ) has a volatility of 4.85%. This indicates that XFLT experiences smaller price fluctuations and is considered to be less risky than REZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XFLT | REZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.46% | 4.85% | -1.39% |
Volatility (6M)Calculated over the trailing 6-month period | 18.38% | 10.94% | +7.44% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.47% | 14.50% | +5.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.10% | 18.94% | +2.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 26.17% | 21.53% | +4.64% |
Dividends
XFLT vs. REZ - Dividend Comparison
XFLT's dividend yield for the trailing twelve months is around 20.82%, more than REZ's 2.13% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
REZ iShares Residential Real Estate ETF | 2.13% | 2.74% | 2.26% | 2.94% | 3.37% | 1.81% | 3.17% | 2.90% | 3.63% | 3.57% | 5.55% | 3.18% |
XFLT XAI Octagon Floating Rate & Alternative Income Term Trust | 20.82% | 18.23% | 15.24% | 13.61% | 13.86% | 9.82% | 10.64% | 10.63% | 11.33% | 1.47% | 0.00% | 0.00% |
Frequently Asked Questions
XFLT and REZ have a correlation of 0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
REZ has higher volatility (4.85%) compared to XFLT (3.46%). In terms of maximum drawdown, XFLT dropped -55.43% vs REZ's -66.87%.
REZ currently has the higher Sharpe Ratio (0.71 vs -1.21), 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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