XLRE vs. FRI

Last updated Jun 4, 2026

XLRE (Real Estate Select Sector SPDR Fund) and FRI (First Trust S&P REIT Index Fund) are both REIT funds - XLRE tracks the Real Estate Select Sector Index while FRI tracks the S&P United States REIT. Both are passively managed. Over the past 10 years, XLRE returned 6.68%/yr vs 5.62%/yr for FRI. Their correlation of 0.94 suggests significant overlap in exposure. XLRE charges 0.13%/yr vs 0.50%/yr for FRI.

Performance

XLRE vs. FRI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Real Estate Select Sector SPDR Fund (XLRE) and First Trust S&P REIT Index Fund (FRI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLRE achieves a 8.56% return, which is significantly lower than FRI's 11.90% return. Over the past 10 years, XLRE has outperformed FRI with an annualized return of 6.68%, while FRI has yielded a comparatively lower 5.62% annualized return.

XLRE

• 1D: 0.05%
• 1M: -1.29%
• YTD: 8.56%
• 6M: 7.82%
• 1Y: 8.12%
• 3Y*: 9.43%
• 5Y*: 2.86%
• 10Y*: 6.68%

FRI

• 1D: 0.21%
• 1M: -0.46%
• YTD: 11.90%
• 6M: 10.60%
• 1Y: 14.73%
• 3Y*: 11.09%
• 5Y*: 4.41%
• 10Y*: 5.62%

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

XLRE vs. FRI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLRE Real Estate Select Sector SPDR Fund	8.56%	2.63%	5.09%	12.36%	-26.25%	46.10%	-2.18%	28.68%	-2.39%	10.69%
FRI First Trust S&P REIT Index Fund	11.90%	2.80%	7.84%	13.33%	-24.66%	42.55%	-7.90%	23.67%	-4.28%	3.86%

Correlation

The correlation between XLRE and FRI is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since Oct 9, 2015	0.94

The correlation between XLRE and FRI has been stable across timeframes, ranging from 0.93 to 0.96 - a consistent structural relationship.

XLRE vs. FRI - Sectors Allocation Comparison

Sectors	XLRE	FRI
Real Estate	98.1%	96.2%
Basic Materials	1.8%	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	2.3%
Healthcare	-	-
Industrials	-	-
Technology	-	-
Utilities	-	0.8%

Return for Risk

XLRE vs. FRI — Risk / Return Rank

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

XLRE

XLRE Risk / Return Rank: 19
XLRE Sharpe Ratio Rank: 18
XLRE Sortino Ratio Rank: 17
XLRE Omega Ratio Rank: 17
XLRE Calmar Ratio Rank: 21
XLRE Martin Ratio Rank: 22

FRI

FRI Risk / Return Rank: 34
FRI Sharpe Ratio Rank: 31
FRI Sortino Ratio Rank: 29
FRI Omega Ratio Rank: 29
FRI Calmar Ratio Rank: 40
FRI Martin Ratio Rank: 39

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. FRI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and First Trust S&P REIT Index Fund (FRI). 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.

	XLRE	FRI	Difference
Sharpe ratio: Return per unit of total volatility	0.61	1.13	-0.53
Sortino ratio: Return per unit of downside risk	0.90	1.59	-0.69
Omega ratio: Gain probability vs. loss probability	1.11	1.20	-0.09
Calmar ratio: Return relative to maximum drawdown	0.98	1.95	-0.98
Martin ratio: Return relative to average drawdown	2.69	6.21	-3.52
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLRE vs. FRI - Sharpe Ratio Comparison

The current XLRE Sharpe Ratio is 0.61, which is lower than the FRI Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of XLRE and FRI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XLRE	FRI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.61	1.13	-0.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.15	0.24	-0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.33	0.27	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.18	+0.17

Drawdowns

XLRE vs. FRI - Drawdown Comparison

The maximum XLRE drawdown since its inception was -38.83%, smaller than the maximum FRI drawdown of -71.95%. Use the drawdown chart below to compare losses from any high point for XLRE and FRI.

Drawdown Indicators

	XLRE	FRI	Difference
Max Drawdown Largest peak-to-trough decline	-38.83%	-71.95%	+33.12%
Max Drawdown (1Y) Largest decline over 1 year	-8.33%	-7.57%	-0.76%
Max Drawdown (3Y) Largest decline over 3 years	-16.74%	-18.90%	+2.16%
Max Drawdown (5Y) Largest decline over 5 years	-34.12%	-31.21%	-2.91%
Max Drawdown (10Y) Largest decline over 10 years	-38.83%	-44.16%	+5.33%
Current Drawdown Current decline from peak	-2.98%	-3.24%	+0.26%
Average Drawdown Average peak-to-trough decline	-9.61%	-13.70%	+4.09%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.03%	2.38%	+0.65%

Volatility

XLRE vs. FRI - Volatility Comparison

The current volatility for Real Estate Select Sector SPDR Fund (XLRE) is 3.71%, while First Trust S&P REIT Index Fund (FRI) has a volatility of 3.93%. This indicates that XLRE experiences smaller price fluctuations and is considered to be less risky than FRI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLRE	FRI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.71%	3.93%	-0.22%
Volatility (6M) Calculated over the trailing 6-month period	9.66%	9.14%	+0.52%
Volatility (1Y) Calculated over the trailing 1-year period	13.43%	13.05%	+0.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.06%	18.65%	+0.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.40%	21.06%	-0.66%

XLRE vs. FRI - Expense Ratio Comparison

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

Dividends

XLRE vs. FRI - Dividend Comparison

XLRE's dividend yield for the trailing twelve months is around 3.22%, more than FRI's 2.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FRI First Trust S&P REIT Index Fund	2.60%	2.99%	3.33%	3.24%	2.52%	1.44%	3.08%	2.28%	3.21%	2.82%	3.27%	2.66%
XLRE Real Estate Select Sector SPDR Fund	3.22%	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 FRI in my portfolio?

With a correlation of 0.93, XLRE and FRI move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XLRE or FRI?

FRI has higher volatility (3.93%) compared to XLRE (3.71%). In terms of maximum drawdown, XLRE dropped -38.83% vs FRI's -71.95%.

Which ETF is better, XLRE or FRI?

On 10-year performance, XLRE leads with 6.68% vs 5.62% for FRI. On fees, XLRE is cheaper at 0.13% per year. On volatility, XLRE has been the lower-risk option at 3.71%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLRE or FRI?

Over the 10-year period, XLRE has performed better with a 6.68% return vs 5.62%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLRE or FRI?

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

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

XLRE has the higher dividend yield at 3.22%, compared with 2.60% for FRI.

What is the main difference between XLRE and FRI?

XLRE tracks Real Estate Select Sector Index, while FRI tracks S&P United States REIT. They also come from different issuers: State Street and First Trust. Their fees differ too: 0.13% for XLRE and 0.50% for FRI.

Which has better risk-adjusted returns?

FRI currently has the higher Sharpe Ratio (1.13 vs 0.61), 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.