XLRE vs. DESK

Last updated Jun 26, 2026

XLRE (Real Estate Select Sector SPDR Fund) and DESK (Vaneck Office And Commercial REIT ETF) are both REIT funds - XLRE tracks the Real Estate Select Sector Index while DESK tracks the MarketVector US Listed Office And Commercial REITS Index - Benchmark TR Gross. Both are passively managed. Over the past year, XLRE returned 11.88% vs 10.74% for DESK. A 0.71 correlation means they provide meaningful diversification when combined. XLRE charges 0.13%/yr vs 0.50%/yr for DESK.

Performance

XLRE vs. DESK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Real Estate Select Sector SPDR Fund (XLRE) and Vaneck Office And Commercial REIT ETF (DESK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLRE achieves a 12.23% return, which is significantly lower than DESK's 13.31% return.

XLRE

• 1D: 0.18%
• 1M: 0.61%
• YTD: 12.23%
• 6M: 11.98%
• 1Y: 11.88%
• 3Y*: 10.45%
• 5Y*: 3.35%
• 10Y*: 6.93%

DESK

• 1D: 1.13%
• 1M: 7.70%
• YTD: 13.31%
• 6M: 12.98%
• 1Y: 10.74%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

XLRE vs. DESK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
XLRE Real Estate Select Sector SPDR Fund	12.23%	2.63%	5.09%	12.27%
DESK Vaneck Office And Commercial REIT ETF	13.31%	-10.42%	16.01%	13.17%

Correlation

The correlation between XLRE and DESK is 0.62, 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	0.62
Correlation (All Time) Calculated using the full available price history since Sep 21, 2023	0.71

The correlation between XLRE and DESK has been stable across timeframes, ranging from 0.62 to 0.71 - a consistent structural relationship.

Return for Risk

XLRE vs. DESK — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XLRE

XLRE Risk / Return Rank: 27
XLRE Sharpe Ratio Rank: 26
XLRE Sortino Ratio Rank: 25
XLRE Omega Ratio Rank: 24
XLRE Calmar Ratio Rank: 31
XLRE Martin Ratio Rank: 30

DESK

DESK Risk / Return Rank: 15
DESK Sharpe Ratio Rank: 17
DESK Sortino Ratio Rank: 17
DESK Omega Ratio Rank: 16
DESK Calmar Ratio Rank: 14
DESK Martin Ratio Rank: 13

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

XLRE vs. DESK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and Vaneck Office And Commercial REIT ETF (DESK). 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	DESK	Difference
Sharpe ratio: Return per unit of total volatility	0.86	0.53	+0.33
Sortino ratio: Return per unit of downside risk	1.24	0.86	+0.38
Omega ratio: Gain probability vs. loss probability	1.16	1.10	+0.05
Calmar ratio: Return relative to maximum drawdown	1.43	0.43	+1.00
Martin ratio: Return relative to average drawdown	3.96	0.91	+3.05

XLRE vs. DESK - Sharpe Ratio Comparison

The current XLRE Sharpe Ratio is 0.86, which is higher than the DESK Sharpe Ratio of 0.53. The chart below compares the historical Sharpe Ratios of XLRE and DESK, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

XLRE vs. DESK - Drawdown Comparison

The maximum XLRE drawdown since its inception was -38.83%, which is greater than DESK's maximum drawdown of -28.65%. Use the drawdown chart below to compare losses from any high point for XLRE and DESK.

Drawdown Indicators

	XLRE	DESK	Difference
Max Drawdown Largest peak-to-trough decline	-38.83%	-28.65%	-10.18%
Max Drawdown (1Y) Largest decline over 1 year	-8.33%	-25.09%	+16.76%
Max Drawdown (3Y) Largest decline over 3 years	-16.74%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-34.12%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-38.83%	—	—
Current Drawdown Current decline from peak	-0.84%	-7.25%	+6.41%
Average Drawdown Average peak-to-trough decline	-9.56%	-11.29%	+1.73%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.01%	11.84%	-8.83%

Volatility

XLRE vs. DESK - Volatility Comparison

The current volatility for Real Estate Select Sector SPDR Fund (XLRE) is 5.35%, while Vaneck Office And Commercial REIT ETF (DESK) has a volatility of 6.78%. This indicates that XLRE experiences smaller price fluctuations and is considered to be less risky than DESK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLRE	DESK	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.35%	6.78%	-1.43%
Volatility (6M) Calculated over the trailing 6-month period	10.61%	15.46%	-4.85%
Volatility (1Y) Calculated over the trailing 1-year period	14.09%	20.56%	-6.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.12%	25.84%	-6.72%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.44%	25.84%	-5.40%

XLRE vs. DESK - Expense Ratio Comparison

XLRE has a 0.13% expense ratio, which is lower than DESK's 0.50% expense ratio.

Dividends

XLRE vs. DESK - Dividend Comparison

XLRE's dividend yield for the trailing twelve months is around 3.15%, less than DESK's 4.75% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DESK Vaneck Office And Commercial REIT ETF	4.75%	5.15%	3.78%	1.73%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XLRE Real Estate Select Sector SPDR Fund	3.15%	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

Can I hold both XLRE and DESK in my portfolio?

XLRE and DESK have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLRE or DESK?

DESK has higher volatility (6.78%) compared to XLRE (5.35%). In terms of maximum drawdown, XLRE dropped -38.83% vs DESK's -28.65%.

Which ETF is better, XLRE or DESK?

On 1-year performance, XLRE leads with 11.88% vs 10.74% for DESK. On fees, XLRE is cheaper at 0.13% per year. On volatility, XLRE has been the lower-risk option at 5.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLRE or DESK?

Over the 1-year period, XLRE has performed better with a 11.88% return vs 10.74%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLRE or DESK?

XLRE is cheaper with a 0.13% expense ratio, compared with 0.50% for DESK.

Which ETF pays a higher dividend yield, XLRE or DESK?

DESK has the higher dividend yield at 4.75%, compared with 3.15% for XLRE.

What is the main difference between XLRE and DESK?

XLRE tracks Real Estate Select Sector Index, while DESK tracks MarketVector US Listed Office And Commercial REITS Index - Benchmark TR Gross. They also come from different issuers: State Street and VanEck. Their fees differ too: 0.13% for XLRE and 0.50% for DESK.

Which has better risk-adjusted returns?

XLRE currently has the higher Sharpe Ratio (0.86 vs 0.53), 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.