XLRE vs. O

Last updated Jun 14, 2026

XLRE (Real Estate Select Sector SPDR Fund) is REIT fund tracking the Real Estate Select Sector Index, while O (Realty Income Corporation) is a stock. Over the past 10 years, XLRE returned 7.15%/yr vs 4.89%/yr for O. A 0.75 correlation means they provide meaningful diversification when combined.

Performance

XLRE vs. O - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Real Estate Select Sector SPDR Fund (XLRE) and Realty Income Corporation (O). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with XLRE having a 13.17% return and O slightly higher at 13.70%. Over the past 10 years, XLRE has outperformed O with an annualized return of 7.15%, while O has yielded a comparatively lower 4.89% 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%

O

• 1D: 1.31%
• 1M: 1.67%
• YTD: 13.70%
• 6M: 11.57%
• 1Y: 14.88%
• 3Y*: 6.59%
• 5Y*: 3.49%
• 10Y*: 4.89%

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

XLRE vs. O - 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%
O Realty Income Corporation	13.70%	12.20%	-2.11%	-4.55%	-7.38%	23.95%	-11.60%	21.27%	15.94%	3.67%

Correlation

The correlation between XLRE and O is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015	0.75

The correlation between XLRE and O has been stable across timeframes, ranging from 0.66 to 0.76 - a consistent structural relationship.

Return for Risk

XLRE vs. O — 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: 24
XLRE Omega Ratio Rank: 24
XLRE Calmar Ratio Rank: 31
XLRE Martin Ratio Rank: 29

O

O Risk / Return Rank: 66
O Sharpe Ratio Rank: 71
O Sortino Ratio Rank: 62
O Omega Ratio Rank: 61
O Calmar Ratio Rank: 68
O Martin Ratio Rank: 69

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. O - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and Realty Income Corporation (O). 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	O	Difference
Sharpe ratio: Return per unit of total volatility	0.81	0.88	-0.07
Sortino ratio: Return per unit of downside risk	1.18	1.26	-0.08
Omega ratio: Gain probability vs. loss probability	1.15	1.15	-0.01
Calmar ratio: Return relative to maximum drawdown	1.34	1.29	+0.05
Martin ratio: Return relative to average drawdown	3.69	3.12	+0.58

XLRE vs. O - Sharpe Ratio Comparison

The current XLRE Sharpe Ratio is 0.81, which is comparable to the O Sharpe Ratio of 0.88. The chart below compares the historical Sharpe Ratios of XLRE and O, 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. O - Drawdown Comparison

The maximum XLRE drawdown since its inception was -38.83%, smaller than the maximum O drawdown of -48.45%. Use the drawdown chart below to compare losses from any high point for XLRE and O.

Drawdown Indicators

	XLRE	O	Difference
Max Drawdown Largest peak-to-trough decline	-38.83%	-48.45%	+9.62%
Max Drawdown (1Y) Largest decline over 1 year	-8.33%	-11.10%	+2.77%
Max Drawdown (3Y) Largest decline over 3 years	-16.74%	-26.49%	+9.75%
Max Drawdown (5Y) Largest decline over 5 years	-34.12%	-34.48%	+0.36%
Max Drawdown (10Y) Largest decline over 10 years	-38.83%	-48.28%	+9.45%
Current Drawdown Current decline from peak	0.00%	-5.94%	+5.94%
Average Drawdown Average peak-to-trough decline	-9.58%	-9.20%	-0.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.03%	4.58%	-1.55%

Volatility

XLRE vs. O - Volatility Comparison

The current volatility for Real Estate Select Sector SPDR Fund (XLRE) is 4.81%, while Realty Income Corporation (O) has a volatility of 5.29%. This indicates that XLRE experiences smaller price fluctuations and is considered to be less risky than O based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLRE	O	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.81%	5.29%	-0.48%
Volatility (6M) Calculated over the trailing 6-month period	10.20%	11.98%	-1.78%
Volatility (1Y) Calculated over the trailing 1-year period	13.83%	16.21%	-2.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.10%	18.92%	+0.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.42%	25.64%	-5.22%

Dividends

XLRE vs. O - Dividend Comparison

XLRE's dividend yield for the trailing twelve months is around 3.08%, less than O's 5.16% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
O Realty Income Corporation	5.16%	6.19%	5.37%	5.33%	4.68%	3.87%	4.51%	3.69%	4.19%	4.45%	4.18%	4.41%
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

Can I hold both XLRE and O in my portfolio?

XLRE and O have a correlation of 0.66, 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 O?

O has higher volatility (5.29%) compared to XLRE (4.81%). In terms of maximum drawdown, XLRE dropped -38.83% vs O's -48.45%.

Which has better risk-adjusted returns?

O currently has the higher Sharpe Ratio (0.88 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.