XLRE vs. ARCC
XLRE (Real Estate Select Sector SPDR Fund) is REIT fund tracking the Real Estate Select Sector Index, while ARCC (Ares Capital Corporation) is a stock. Over the past 10 years, XLRE returned 7.15%/yr vs 13.20%/yr for ARCC. At a 0.38 correlation, their price movements are largely independent.
Performance
XLRE vs. ARCC - Performance Comparison
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Returns By Period
In the year-to-date period, XLRE achieves a 13.17% return, which is significantly higher than ARCC's -2.20% return. Over the past 10 years, XLRE has underperformed ARCC with an annualized return of 7.15%, while ARCC has yielded a comparatively higher 13.20% annualized return.
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%
ARCC
- 1D
- 1.00%
- 1M
- 1.69%
- YTD
- -2.20%
- 6M
- -2.87%
- 1Y
- -3.87%
- 3Y*
- 10.27%
- 5Y*
- 9.04%
- 10Y*
- 13.20%
XLRE vs. ARCC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
ARCC Ares Capital Corporation | -2.20% | 1.07% | 19.78% | 20.03% | -3.84% | 36.14% | 0.86% | 31.30% | 8.81% | 4.50% |
Correlation
The correlation between XLRE and ARCC is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.32 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.35 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.42 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.38 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.38 |
The correlation between XLRE and ARCC shifts across timeframes, from 0.32 (1 year) to 0.42 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLRE vs. ARCC — Risk / Return Rank
XLRE
ARCC
XLRE vs. ARCC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and Ares Capital Corporation (ARCC). 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.
| XLRE | ARCC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.08 | ||
| Sortino ratioReturn per unit of downside risk | +1.43 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 0.97 | +0.18 |
| Calmar ratioReturn relative to maximum drawdown | 1.34 | -0.26 | +1.61 |
| Martin ratioReturn relative to average drawdown | 3.69 | -0.47 | +4.17 |
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Drawdowns
XLRE vs. ARCC - Drawdown Comparison
The maximum XLRE drawdown since its inception was -38.83%, smaller than the maximum ARCC drawdown of -79.36%. Use the drawdown chart below to compare losses from any high point for XLRE and ARCC.
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Drawdown Indicators
| XLRE | ARCC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.83% | -79.36% | +40.53% |
Max Drawdown (1Y)Largest decline over 1 year | -8.33% | -19.35% | +11.02% |
Max Drawdown (3Y)Largest decline over 3 years | -16.74% | -19.35% | +2.61% |
Max Drawdown (5Y)Largest decline over 5 years | -34.12% | -21.76% | -12.36% |
Max Drawdown (10Y)Largest decline over 10 years | -38.83% | -56.77% | +17.94% |
Current DrawdownCurrent decline from peak | 0.00% | -10.98% | +10.98% |
Average DrawdownAverage peak-to-trough decline | -9.58% | -9.10% | -0.48% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.03% | 10.68% | -7.65% |
Volatility
XLRE vs. ARCC - Volatility Comparison
Real Estate Select Sector SPDR Fund (XLRE) has a higher volatility of 4.81% compared to Ares Capital Corporation (ARCC) at 3.72%. This indicates that XLRE's price experiences larger fluctuations and is considered to be riskier than ARCC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLRE | ARCC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.81% | 3.72% | +1.09% |
Volatility (6M)Calculated over the trailing 6-month period | 10.20% | 14.83% | -4.63% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.83% | 18.48% | -4.65% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.10% | 19.96% | -0.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.42% | 25.58% | -5.16% |
Dividends
XLRE vs. ARCC - Dividend Comparison
XLRE's dividend yield for the trailing twelve months is around 3.08%, less than ARCC's 9.97% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ARCC Ares Capital Corporation | 7.48% | 9.49% | 8.77% | 9.59% | 10.12% | 7.65% | 9.47% | 9.01% | 9.88% | 9.67% | 9.22% | 11.02% |
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
XLRE and ARCC have a correlation of 0.32, 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 ARCC (3.72%). In terms of maximum drawdown, XLRE dropped -38.83% vs ARCC's -79.36%.
XLRE currently has the higher Sharpe Ratio (0.81 vs -0.27), 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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