XLP vs. XLRE
XLP (State Street Consumer Staples Select Sector SPDR ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both exchange-traded funds - XLP is a Consumer Staples Equities fund tracking the Consumer Staples Select Sector Index, while XLRE is a REIT fund tracking the Real Estate Select Sector Index. Both are passively managed. Over the past 10 years, XLP returned 7.07%/yr vs 6.28%/yr for XLRE. A 0.59 correlation means they provide meaningful diversification when combined. XLP charges 0.08%/yr vs 0.13%/yr for XLRE.
Performance
XLP vs. XLRE - Performance Comparison
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Returns By Period
In the year-to-date period, XLP achieves a 9.58% return, which is significantly lower than XLRE's 13.76% return. Over the past 10 years, XLP has outperformed XLRE with an annualized return of 7.07%, while XLRE has yielded a comparatively lower 6.28% annualized return.
XLP
- 1D
- -0.94%
- 1M
- 1.61%
- 6M
- 3.35%
- YTD
- 9.58%
- 1Y
- 6.81%
- 3Y*
- 6.44%
- 5Y*
- 6.34%
- 10Y*
- 7.07%
- ALL TIME*
- 6.83%
XLRE
- 1D
- -0.07%
- 1M
- 3.96%
- 6M
- 10.88%
- YTD
- 13.76%
- 1Y
- 11.33%
- 3Y*
- 9.06%
- 5Y*
- 3.10%
- 10Y*
- 6.28%
- ALL TIME*
- 7.50%
XLP vs. XLRE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLP State Street Consumer Staples Select Sector SPDR ETF | 9.58% | 1.52% | 12.20% | -0.82% | -0.81% | 17.20% | 10.11% | 27.43% | -8.07% | 12.98% |
XLRE Real Estate Select Sector SPDR Fund | 13.76% | 2.63% | 5.09% | 12.36% | -26.25% | 46.10% | -2.18% | 28.68% | -2.39% | 10.69% |
Correlation
The correlation between XLP and XLRE is 0.52, 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 | 0.52 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.55 |
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 Oct 8, 2015 | 0.59 |
The correlation between XLP and XLRE has been stable across timeframes, ranging from 0.52 to 0.59 - a consistent structural relationship.
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Return for Risk
XLP vs. XLRE — Risk / Return Rank
XLP
XLRE
XLP vs. XLRE - 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 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.
| XLP | XLRE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.30 | ||
| Sortino ratioReturn per unit of downside risk | -0.35 | ||
| Omega ratioGain probability vs. loss probability | 1.09 | 1.14 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 0.71 | 1.37 | -0.66 |
| Martin ratioReturn relative to average drawdown | 1.29 | 3.74 | -2.45 |
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Drawdowns
XLP vs. XLRE - Drawdown Comparison
The maximum XLP drawdown since its inception was -35.90%, smaller than the maximum XLRE drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for XLP and XLRE.
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Drawdown Indicators
| XLP | XLRE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.90% | -38.83% | +2.93% |
Max Drawdown (1Y)Largest decline over 1 year | -9.69% | -8.33% | -1.36% |
Max Drawdown (3Y)Largest decline over 3 years | -12.39% | -16.74% | +4.35% |
Max Drawdown (5Y)Largest decline over 5 years | -16.30% | -34.12% | +17.82% |
Max Drawdown (10Y)Largest decline over 10 years | -24.51% | -38.83% | +14.32% |
Current DrawdownCurrent decline from peak | -5.43% | -0.57% | -4.86% |
Average DrawdownAverage peak-to-trough decline | -7.05% | -9.50% | +2.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.27% | 3.03% | +2.24% |
Volatility
XLP vs. XLRE - Volatility Comparison
State Street Consumer Staples Select Sector SPDR ETF (XLP) has a higher volatility of 5.55% compared to Real Estate Select Sector SPDR Fund (XLRE) at 4.73%. This indicates that XLP's price experiences larger fluctuations and is considered to be riskier 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
| XLP | XLRE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.55% | 4.73% | +0.82% |
Volatility (6M)Calculated over the trailing 6-month period | 11.06% | 11.10% | -0.04% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.76% | 14.32% | -0.56% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 13.53% | 19.15% | -5.62% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.83% | 20.46% | -5.63% |
XLP vs. XLRE - Expense Ratio Comparison
XLP has a 0.08% 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
XLP vs. XLRE - Dividend Comparison
XLP's dividend yield for the trailing twelve months is around 2.61%, less than XLRE's 3.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLP State Street Consumer Staples Select Sector SPDR ETF | 2.61% | 2.75% | 2.77% | 2.63% | 2.47% | 2.28% | 2.50% | 2.57% | 3.04% | 2.62% | 2.53% | 2.52% |
XLRE Real Estate Select Sector SPDR Fund | 3.11% | 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
XLP and XLRE have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLP has higher volatility (5.55%) compared to XLRE (4.73%). In terms of maximum drawdown, XLP dropped -35.90% vs XLRE's -38.83%.
On 10-year performance, XLP leads with 7.07% vs 6.28% for XLRE. On fees, XLP is cheaper at 0.08% per year. On volatility, XLRE has been the lower-risk option at 4.73%. 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 7.07% return vs 6.28%. 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 0.13% for XLRE.
XLRE has the higher dividend yield at 3.11%, compared with 2.61% for XLP.
XLP is categorized as Consumer Staples Equities, while XLRE is REIT. XLP tracks Consumer Staples Select Sector Index, while XLRE tracks Real Estate Select Sector Index. Their fees differ too: 0.08% for XLP and 0.13% for XLRE.
XLRE currently has the higher Sharpe Ratio (0.79 vs 0.50), 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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