XLRE vs. SCHD

Last updated Jun 4, 2026

XLRE (Real Estate Select Sector SPDR Fund) and SCHD (Schwab U.S. Dividend Equity ETF) are both exchange-traded funds - XLRE is a REIT fund tracking the Real Estate Select Sector Index, while SCHD is a Dividend fund tracking the Dow Jones U.S. Dividend 100 Index. Both are passively managed. Over the past 10 years, XLRE returned 6.68%/yr vs 12.77%/yr for SCHD. A 0.59 correlation means they provide meaningful diversification when combined. XLRE charges 0.13%/yr vs 0.06%/yr for SCHD.

Performance

XLRE vs. SCHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Real Estate Select Sector SPDR Fund (XLRE) and Schwab U.S. Dividend Equity ETF (SCHD). 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 SCHD's 19.01% return. Over the past 10 years, XLRE has underperformed SCHD with an annualized return of 6.68%, while SCHD has yielded a comparatively higher 12.77% 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%

SCHD

• 1D: 0.00%
• 1M: 2.70%
• YTD: 19.01%
• 6M: 18.63%
• 1Y: 27.16%
• 3Y*: 15.09%
• 5Y*: 8.36%
• 10Y*: 12.77%

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

XLRE vs. SCHD - 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%
SCHD Schwab U.S. Dividend Equity ETF	19.01%	4.34%	11.66%	4.54%	-3.26%	29.87%	15.03%	27.29%	-5.56%	20.85%

Correlation

The correlation between XLRE and SCHD is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.68
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since Oct 9, 2015	0.59

The correlation between XLRE and SCHD shifts across timeframes, from 0.58 (1 year) to 0.68 (5 years), reflecting how their relationship changes across market environments.

XLRE vs. SCHD - Sectors Allocation Comparison

Sectors	XLRE	SCHD
Real Estate	98.1%	-
Basic Materials	1.8%	1.2%
Communication Services	-	6.3%
Consumer Cyclical	-	6.3%
Consumer Defensive	-	19.2%
Energy	-	16.2%
Financial Services	-	9.3%
Healthcare	-	18.8%
Industrials	-	7.5%
Technology	-	16.4%
Utilities	-	0.0%

Return for Risk

XLRE vs. SCHD — 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

SCHD

SCHD Risk / Return Rank: 80
SCHD Sharpe Ratio Rank: 75
SCHD Sortino Ratio Rank: 84
SCHD Omega Ratio Rank: 73
SCHD Calmar Ratio Rank: 91
SCHD Martin Ratio Rank: 75

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. SCHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and Schwab U.S. Dividend Equity ETF (SCHD). 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	SCHD	Difference
Sharpe ratio: Return per unit of total volatility	0.61	2.49	-1.89
Sortino ratio: Return per unit of downside risk	0.90	3.87	-2.97
Omega ratio: Gain probability vs. loss probability	1.11	1.45	-0.33
Calmar ratio: Return relative to maximum drawdown	0.98	5.91	-4.93
Martin ratio: Return relative to average drawdown	2.69	14.53	-11.84
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. SCHD - Sharpe Ratio Comparison

The current XLRE Sharpe Ratio is 0.61, which is lower than the SCHD Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of XLRE and SCHD, 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	SCHD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.61	2.49	-1.89
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.15	0.58	-0.43
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.33	0.77	-0.44
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.86	-0.51

Drawdowns

XLRE vs. SCHD - Drawdown Comparison

The maximum XLRE drawdown since its inception was -38.83%, which is greater than SCHD's maximum drawdown of -33.37%. Use the drawdown chart below to compare losses from any high point for XLRE and SCHD.

Drawdown Indicators

	XLRE	SCHD	Difference
Max Drawdown Largest peak-to-trough decline	-38.83%	-33.37%	-5.46%
Max Drawdown (1Y) Largest decline over 1 year	-8.33%	-4.61%	-3.72%
Max Drawdown (3Y) Largest decline over 3 years	-16.74%	-16.13%	-0.61%
Max Drawdown (5Y) Largest decline over 5 years	-34.12%	-16.85%	-17.27%
Max Drawdown (10Y) Largest decline over 10 years	-38.83%	-33.37%	-5.46%
Current Drawdown Current decline from peak	-2.98%	-1.40%	-1.58%
Average Drawdown Average peak-to-trough decline	-9.61%	-3.32%	-6.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.03%	1.88%	+1.15%

Volatility

XLRE vs. SCHD - Volatility Comparison

Real Estate Select Sector SPDR Fund (XLRE) has a higher volatility of 3.71% compared to Schwab U.S. Dividend Equity ETF (SCHD) at 2.66%. This indicates that XLRE's price experiences larger fluctuations and is considered to be riskier than SCHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLRE	SCHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.71%	2.66%	+1.05%
Volatility (6M) Calculated over the trailing 6-month period	9.66%	7.66%	+2.00%
Volatility (1Y) Calculated over the trailing 1-year period	13.43%	10.96%	+2.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.06%	14.38%	+4.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.40%	16.72%	+3.68%

XLRE vs. SCHD - Expense Ratio Comparison

XLRE has a 0.13% expense ratio, which is higher than SCHD's 0.06% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XLRE vs. SCHD - Dividend Comparison

XLRE's dividend yield for the trailing twelve months is around 3.22%, less than SCHD's 3.26% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SCHD Schwab U.S. Dividend Equity ETF	3.26%	3.82%	3.64%	3.49%	3.39%	2.78%	3.16%	2.98%	3.06%	2.63%	2.89%	2.97%
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 SCHD in my portfolio?

XLRE and SCHD have a correlation of 0.58, 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 SCHD?

XLRE has higher volatility (3.71%) compared to SCHD (2.66%). In terms of maximum drawdown, XLRE dropped -38.83% vs SCHD's -33.37%.

Which ETF is better, XLRE or SCHD?

On 10-year performance, SCHD leads with 12.77% vs 6.68% for XLRE. On fees, SCHD is cheaper at 0.06% per year. On volatility, SCHD has been the lower-risk option at 2.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLRE or SCHD?

Over the 10-year period, SCHD has performed better with a 12.77% return vs 6.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLRE or SCHD?

SCHD is cheaper with a 0.06% expense ratio, compared with 0.13% for XLRE.

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

SCHD has the higher dividend yield at 3.26%, compared with 3.22% for XLRE.

What is the main difference between XLRE and SCHD?

XLRE is categorized as REIT, while SCHD is Dividend. XLRE tracks Real Estate Select Sector Index, while SCHD tracks Dow Jones U.S. Dividend 100 Index. They also come from different issuers: State Street and Charles Schwab. Their fees differ too: 0.13% for XLRE and 0.06% for SCHD.

Which has better risk-adjusted returns?

SCHD currently has the higher Sharpe Ratio (2.49 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.