XLRE vs. EEM
XLRE (Real Estate Select Sector SPDR Fund) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - XLRE is a REIT fund tracking the Real Estate Select Sector Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, XLRE returned 7.15%/yr vs 9.91%/yr for EEM. At a 0.37 correlation, their price movements are largely independent. XLRE charges 0.13%/yr vs 0.72%/yr for EEM.
Performance
XLRE vs. EEM - Performance Comparison
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Returns By Period
In the year-to-date period, XLRE achieves a 13.17% return, which is significantly lower than EEM's 24.07% return. Over the past 10 years, XLRE has underperformed EEM with an annualized return of 7.15%, while EEM has yielded a comparatively higher 9.91% 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%
EEM
- 1D
- 0.56%
- 1M
- 0.74%
- YTD
- 24.07%
- 6M
- 26.94%
- 1Y
- 47.57%
- 3Y*
- 21.60%
- 5Y*
- 6.56%
- 10Y*
- 9.91%
XLRE vs. EEM - 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% |
EEM iShares MSCI Emerging Markets ETF | 24.07% | 33.98% | 6.49% | 8.95% | -20.56% | -3.63% | 17.02% | 18.22% | -15.31% | 37.26% |
Correlation
The correlation between XLRE and EEM is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.22 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.33 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.38 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.37 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.37 |
The correlation between XLRE and EEM shifts across timeframes, from 0.22 (1 year) to 0.38 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLRE vs. EEM — Risk / Return Rank
XLRE
EEM
XLRE vs. EEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and iShares MSCI Emerging Markets ETF (EEM). 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 | EEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.29 | ||
| Sortino ratioReturn per unit of downside risk | -1.55 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.40 | -0.25 |
| Calmar ratioReturn relative to maximum drawdown | 1.34 | 3.36 | -2.02 |
| Martin ratioReturn relative to average drawdown | 3.69 | 12.38 | -8.69 |
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Drawdowns
XLRE vs. EEM - Drawdown Comparison
The maximum XLRE drawdown since its inception was -38.83%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for XLRE and EEM.
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Drawdown Indicators
| XLRE | EEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.83% | -66.43% | +27.60% |
Max Drawdown (1Y)Largest decline over 1 year | -8.33% | -13.52% | +5.19% |
Max Drawdown (3Y)Largest decline over 3 years | -16.74% | -17.29% | +0.55% |
Max Drawdown (5Y)Largest decline over 5 years | -34.12% | -37.49% | +3.37% |
Max Drawdown (10Y)Largest decline over 10 years | -38.83% | -39.82% | +0.99% |
Current DrawdownCurrent decline from peak | 0.00% | -4.12% | +4.12% |
Average DrawdownAverage peak-to-trough decline | -9.58% | -16.00% | +6.42% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.03% | 3.67% | -0.64% |
Volatility
XLRE vs. EEM - Volatility Comparison
The current volatility for Real Estate Select Sector SPDR Fund (XLRE) is 4.81%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.80%. This indicates that XLRE experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLRE | EEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.81% | 10.80% | -5.99% |
Volatility (6M)Calculated over the trailing 6-month period | 10.20% | 19.39% | -9.19% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.83% | 21.64% | -7.81% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.10% | 19.26% | -0.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.42% | 20.64% | -0.22% |
XLRE vs. EEM - Expense Ratio Comparison
XLRE has a 0.13% expense ratio, which is lower than EEM's 0.72% expense ratio.
Dividends
XLRE vs. EEM - Dividend Comparison
XLRE's dividend yield for the trailing twelve months is around 3.08%, more than EEM's 1.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 1.79% | 2.22% | 2.43% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% |
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 EEM have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
EEM has higher volatility (10.80%) compared to XLRE (4.81%). In terms of maximum drawdown, XLRE dropped -38.83% vs EEM's -66.43%.
On 10-year performance, EEM leads with 9.91% vs 7.15% for XLRE. On fees, XLRE is cheaper at 0.13% per year. On volatility, XLRE has been the lower-risk option at 4.81%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, EEM has performed better with a 9.91% return vs 7.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLRE is cheaper with a 0.13% expense ratio, compared with 0.72% for EEM.
XLRE has the higher dividend yield at 3.08%, compared with 1.79% for EEM.
XLRE is categorized as REIT, while EEM is Emerging Markets Diversified. XLRE tracks Real Estate Select Sector Index, while EEM tracks MSCI Emerging Markets Index (Net). They also come from different issuers: State Street and iShares. Their fees differ too: 0.13% for XLRE and 0.72% for EEM.
EEM currently has the higher Sharpe Ratio (2.10 vs 0.81), 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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