XLC vs. XLRE
Compare and contrast key facts about Communication Services Select Sector SPDR Fund (XLC) and Real Estate Select Sector SPDR Fund (XLRE).
XLC and XLRE are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLC is a passively managed fund by State Street that tracks the performance of the S&P Communication Services Select Sector Index. It was launched on Jun 18, 2018. XLRE is a passively managed fund by State Street that tracks the performance of the Real Estate Select Sector Index. It was launched on Oct 7, 2015. Both XLC and XLRE are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XLC or XLRE.
Key characteristics
| XLC | XLRE | |
|---|---|---|
| YTD Return | 10.69% | -6.96% |
| 1Y Return | 40.53% | 3.99% |
| 3Y Return (Ann) | 2.32% | -1.20% |
| 5Y Return (Ann) | 10.86% | 3.76% |
| Sharpe Ratio | 2.29 | 0.27 |
| Daily Std Dev | 16.68% | 18.45% |
| Max Drawdown | -46.66% | -38.83% |
| Current Drawdown | -4.40% | -22.89% |
Correlation
The correlation between XLC and XLRE is 0.50, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
XLC vs. XLRE - Performance Comparison
In the year-to-date period, XLC achieves a 10.69% return, which is significantly higher than XLRE's -6.96% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XLC vs. XLRE - Expense Ratio Comparison
Both XLC and XLRE have an expense ratio of 0.13%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
XLC vs. XLRE - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Communication Services Select Sector SPDR Fund (XLC) 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.
Dividends
XLC vs. XLRE - Dividend Comparison
XLC's dividend yield for the trailing twelve months is around 0.82%, less than XLRE's 3.60% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLC Communication Services Select Sector SPDR Fund | 0.82% | 0.82% | 1.10% | 0.74% | 0.68% | 0.82% | 0.64% | 0.00% | 0.00% | 0.00% |
XLRE Real Estate Select Sector SPDR Fund | 3.60% | 3.31% | 3.70% | 2.61% | 3.15% | 3.06% | 3.78% | 3.25% | 4.22% | 1.09% |
Drawdowns
XLC vs. XLRE - Drawdown Comparison
The maximum XLC drawdown since its inception was -46.66%, which is greater than XLRE's maximum drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for XLC and XLRE. For additional features, visit the drawdowns tool.
Volatility
XLC vs. XLRE - Volatility Comparison
Communication Services Select Sector SPDR Fund (XLC) and Real Estate Select Sector SPDR Fund (XLRE) have volatilities of 6.33% and 6.21%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.