XLP vs. IYR
XLP (State Street Consumer Staples Select Sector SPDR ETF) and IYR (iShares U.S. Real Estate ETF) are both exchange-traded funds - XLP is a Consumer Staples Equities fund tracking the Consumer Staples Select Sector Index, while IYR is a REIT fund tracking the Dow Jones U.S. Real Estate Index. Both are passively managed. Over the past 10 years, XLP returned 7.60%/yr vs 5.97%/yr for IYR. A 0.54 correlation means they provide meaningful diversification when combined. XLP charges 0.08%/yr vs 0.42%/yr for IYR.
Performance
XLP vs. IYR - Performance Comparison
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Returns By Period
The year-to-date returns for both investments are quite close, with XLP having a 11.10% return and IYR slightly higher at 11.47%. Over the past 10 years, XLP has outperformed IYR with an annualized return of 7.60%, while IYR has yielded a comparatively lower 5.97% annualized return.
XLP
- 1D
- 0.65%
- 1M
- 0.99%
- YTD
- 11.10%
- 6M
- 9.54%
- 1Y
- 8.93%
- 3Y*
- 8.26%
- 5Y*
- 6.65%
- 10Y*
- 7.60%
IYR
- 1D
- 0.89%
- 1M
- 3.00%
- YTD
- 11.47%
- 6M
- 11.46%
- 1Y
- 12.40%
- 3Y*
- 9.71%
- 5Y*
- 2.47%
- 10Y*
- 5.97%
XLP vs. IYR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLP State Street Consumer Staples Select Sector SPDR ETF | 11.10% | 1.52% | 12.20% | -0.82% | -0.81% | 17.20% | 10.11% | 27.43% | -8.07% | 12.98% |
IYR iShares U.S. Real Estate ETF | 11.47% | 3.38% | 4.41% | 11.89% | -25.51% | 38.74% | -5.23% | 28.21% | -4.33% | 9.31% |
Correlation
The correlation between XLP and IYR is 0.50, 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 | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.54 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.58 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2000 | 0.54 |
The correlation between XLP and IYR has been stable across timeframes, ranging from 0.50 to 0.59 - a consistent structural relationship.
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Return for Risk
XLP vs. IYR — Risk / Return Rank
XLP
IYR
XLP vs. IYR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for State Street Consumer Staples Select Sector SPDR ETF (XLP) and iShares U.S. Real Estate ETF (IYR). 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.
| XLP | IYR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.25 | ||
| Sortino ratioReturn per unit of downside risk | -0.30 | ||
| Omega ratioGain probability vs. loss probability | 1.11 | 1.15 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 0.79 | 1.34 | -0.55 |
| Martin ratioReturn relative to average drawdown | 1.52 | 4.19 | -2.67 |
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Drawdowns
XLP vs. IYR - Drawdown Comparison
The maximum XLP drawdown since its inception was -35.90%, smaller than the maximum IYR drawdown of -74.13%. Use the drawdown chart below to compare losses from any high point for XLP and IYR.
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Drawdown Indicators
| XLP | IYR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.90% | -74.13% | +38.23% |
Max Drawdown (1Y)Largest decline over 1 year | -9.69% | -8.54% | -1.15% |
Max Drawdown (3Y)Largest decline over 3 years | -12.39% | -17.52% | +5.13% |
Max Drawdown (5Y)Largest decline over 5 years | -16.30% | -33.75% | +17.45% |
Max Drawdown (10Y)Largest decline over 10 years | -24.51% | -42.32% | +17.81% |
Current DrawdownCurrent decline from peak | -4.12% | 0.00% | -4.12% |
Average DrawdownAverage peak-to-trough decline | -7.06% | -12.89% | +5.83% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.01% | 2.73% | +2.28% |
Volatility
XLP vs. IYR - Volatility Comparison
The current volatility for State Street Consumer Staples Select Sector SPDR ETF (XLP) is 4.53%, while iShares U.S. Real Estate ETF (IYR) has a volatility of 4.80%. This indicates that XLP experiences smaller price fluctuations and is considered to be less risky than IYR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLP | IYR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.53% | 4.80% | -0.27% |
Volatility (6M)Calculated over the trailing 6-month period | 10.14% | 9.87% | +0.27% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.90% | 13.58% | -0.68% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.34% | 18.76% | -5.42% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.75% | 20.34% | -5.59% |
XLP vs. IYR - Expense Ratio Comparison
XLP has a 0.08% expense ratio, which is lower than IYR's 0.42% expense ratio.
Dividends
XLP vs. IYR - Dividend Comparison
XLP's dividend yield for the trailing twelve months is around 2.53%, more than IYR's 2.15% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYR iShares U.S. Real Estate ETF | 2.15% | 2.48% | 2.57% | 2.75% | 2.92% | 2.06% | 2.58% | 3.05% | 3.53% | 3.73% | 4.41% | 3.92% |
XLP State Street Consumer Staples Select Sector SPDR ETF | 2.53% | 2.75% | 2.77% | 2.63% | 2.47% | 2.28% | 2.50% | 2.57% | 3.04% | 2.62% | 2.53% | 2.52% |
Frequently Asked Questions
XLP and IYR have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
IYR has higher volatility (4.80%) compared to XLP (4.53%). In terms of maximum drawdown, XLP dropped -35.90% vs IYR's -74.13%.
On 10-year performance, XLP leads with 7.60% vs 5.97% for IYR. On fees, XLP is cheaper at 0.08% per year. On volatility, XLP has been the lower-risk option at 4.53%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLP has performed better with a 7.60% return vs 5.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLP is cheaper with a 0.08% expense ratio, compared with 0.42% for IYR.
XLP has the higher dividend yield at 2.53%, compared with 2.15% for IYR.
XLP is categorized as Consumer Staples Equities, while IYR is REIT. XLP tracks Consumer Staples Select Sector Index, while IYR tracks Dow Jones U.S. Real Estate Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.08% for XLP and 0.42% for IYR.
IYR currently has the higher Sharpe Ratio (0.84 vs 0.59), 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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