XLRE vs. IYR
XLRE (Real Estate Select Sector SPDR Fund) and IYR (iShares U.S. Real Estate ETF) are both REIT funds - XLRE tracks the Real Estate Select Sector Index while IYR tracks the Dow Jones U.S. Real Estate Capped Index. Both are passively managed. Over the past 10 years, XLRE returned 6.92%/yr vs 5.75%/yr for IYR. With a 0.97 correlation, they move nearly in lockstep. XLRE charges 0.13%/yr vs 0.38%/yr for IYR.
Performance
XLRE vs. IYR - Performance Comparison
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Returns By Period
In the year-to-date period, XLRE achieves a 12.35% return, which is significantly higher than IYR's 10.54% return. Over the past 10 years, XLRE has outperformed IYR with an annualized return of 6.92%, while IYR has yielded a comparatively lower 5.75% annualized return.
XLRE
- 1D
- 1.41%
- 1M
- 1.06%
- YTD
- 12.35%
- 6M
- 12.83%
- 1Y
- 9.79%
- 3Y*
- 11.31%
- 5Y*
- 3.53%
- 10Y*
- 6.92%
IYR
- 1D
- 1.36%
- 1M
- 0.76%
- YTD
- 10.54%
- 6M
- 10.95%
- 1Y
- 9.94%
- 3Y*
- 10.59%
- 5Y*
- 2.71%
- 10Y*
- 5.75%
XLRE vs. IYR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLRE Real Estate Select Sector SPDR Fund | 12.35% | 2.63% | 5.09% | 12.36% | -26.25% | 46.10% | -2.18% | 28.68% | -2.39% | 10.69% |
IYR iShares U.S. Real Estate ETF | 10.54% | 3.38% | 4.41% | 11.89% | -25.51% | 38.74% | -5.23% | 28.21% | -4.33% | 9.31% |
Correlation
The correlation between XLRE and IYR is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.99 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.99 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.99 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.97 |
The correlation between XLRE and IYR has been stable across timeframes, ranging from 0.97 to 0.99 - a consistent structural relationship.
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Return for Risk
XLRE vs. IYR — Risk / Return Rank
XLRE
IYR
XLRE vs. IYR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and iShares U.S. Real Estate ETF (IYR). 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 | IYR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.02 | ||
| Sortino ratioReturn per unit of downside risk | -0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.13 | 1.13 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 1.18 | 1.17 | +0.01 |
| Martin ratioReturn relative to average drawdown | 3.23 | 3.62 | -0.40 |
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Drawdowns
XLRE vs. IYR - Drawdown Comparison
The maximum XLRE drawdown since its inception was -38.83%, smaller than the maximum IYR drawdown of -74.13%. Use the drawdown chart below to compare losses from any high point for XLRE and IYR.
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Drawdown Indicators
| XLRE | IYR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.83% | -74.13% | +35.30% |
Max Drawdown (1Y)Largest decline over 1 year | -8.33% | -8.54% | +0.21% |
Max Drawdown (3Y)Largest decline over 3 years | -16.74% | -17.52% | +0.78% |
Max Drawdown (5Y)Largest decline over 5 years | -34.12% | -33.75% | -0.37% |
Max Drawdown (10Y)Largest decline over 10 years | -38.83% | -42.32% | +3.49% |
Current DrawdownCurrent decline from peak | -0.72% | -0.84% | +0.12% |
Average DrawdownAverage peak-to-trough decline | -9.56% | -12.88% | +3.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.04% | 2.75% | +0.29% |
Volatility
XLRE vs. IYR - Volatility Comparison
Real Estate Select Sector SPDR Fund (XLRE) and iShares U.S. Real Estate ETF (IYR) have volatilities of 5.35% and 5.39%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLRE | IYR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.35% | 5.39% | -0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 10.63% | 10.34% | +0.29% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.17% | 13.93% | +0.24% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.13% | 18.78% | +0.35% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.45% | 20.37% | +0.08% |
XLRE vs. IYR - Expense Ratio Comparison
XLRE has a 0.13% expense ratio, which is lower than IYR's 0.38% expense ratio.
Dividends
XLRE vs. IYR - Dividend Comparison
XLRE's dividend yield for the trailing twelve months is around 3.15%, more than IYR's 2.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYR iShares U.S. Real Estate ETF | 2.20% | 2.48% | 2.57% | 2.75% | 2.92% | 2.06% | 2.58% | 3.05% | 3.53% | 3.73% | 4.41% | 3.92% |
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
With a correlation of 0.99, XLRE and IYR 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.
IYR has higher volatility (5.39%) compared to XLRE (5.35%). In terms of maximum drawdown, XLRE dropped -38.83% vs IYR's -74.13%.
On 10-year performance, XLRE leads with 6.92% vs 5.75% for IYR. On fees, XLRE is cheaper at 0.13% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLRE has performed better with a 6.92% return vs 5.75%. 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 0.38% for IYR.
XLRE has the higher dividend yield at 3.15%, compared with 2.20% for IYR.
XLRE tracks Real Estate Select Sector Index, while IYR tracks Dow Jones U.S. Real Estate Capped Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.13% for XLRE and 0.38% for IYR.
IYR currently has the higher Sharpe Ratio (0.72 vs 0.70), 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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