XLRE vs. VEU
XLRE (Real Estate Select Sector SPDR Fund) and VEU (Vanguard FTSE All-World ex-US ETF) are both exchange-traded funds - XLRE is a REIT fund tracking the Real Estate Select Sector Index, while VEU is a Foreign Large Cap Equities fund tracking the FTSE All-World ex US Index. Both are passively managed. Over the past 10 years, XLRE returned 6.91%/yr vs 10.40%/yr for VEU. At a 0.48 correlation, their price movements are largely independent. XLRE charges 0.13%/yr vs 0.04%/yr for VEU.
Performance
XLRE vs. VEU - Performance Comparison
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Returns By Period
In the year-to-date period, XLRE achieves a 12.25% return, which is significantly lower than VEU's 15.75% return. Over the past 10 years, XLRE has underperformed VEU with an annualized return of 6.91%, while VEU has yielded a comparatively higher 10.40% annualized return.
XLRE
- 1D
- -0.82%
- 1M
- 4.07%
- YTD
- 12.25%
- 6M
- 11.92%
- 1Y
- 11.14%
- 3Y*
- 9.79%
- 5Y*
- 3.41%
- 10Y*
- 6.91%
VEU
- 1D
- 1.47%
- 1M
- 4.95%
- YTD
- 15.75%
- 6M
- 17.16%
- 1Y
- 32.51%
- 3Y*
- 18.83%
- 5Y*
- 9.05%
- 10Y*
- 10.40%
XLRE vs. VEU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLRE Real Estate Select Sector SPDR Fund | 12.25% | 2.63% | 5.09% | 12.36% | -26.25% | 46.10% | -2.18% | 28.68% | -2.39% | 10.69% |
VEU Vanguard FTSE All-World ex-US ETF | 15.75% | 32.35% | 5.56% | 15.84% | -15.58% | 8.27% | 11.10% | 21.83% | -14.18% | 27.40% |
Correlation
The correlation between XLRE and VEU is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.48 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.52 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.48 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.48 |
The correlation between XLRE and VEU shifts across timeframes, from 0.38 (1 year) to 0.52 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLRE vs. VEU — Risk / Return Rank
XLRE
VEU
XLRE vs. VEU - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and Vanguard FTSE All-World ex-US ETF (VEU). 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 | VEU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.21 | ||
| Sortino ratioReturn per unit of downside risk | -1.59 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.37 | -0.22 |
| Calmar ratioReturn relative to maximum drawdown | 1.34 | 2.86 | -1.52 |
| Martin ratioReturn relative to average drawdown | 3.69 | 10.95 | -7.26 |
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Drawdowns
XLRE vs. VEU - Drawdown Comparison
The maximum XLRE drawdown since its inception was -38.83%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for XLRE and VEU.
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Drawdown Indicators
| XLRE | VEU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.83% | -61.52% | +22.69% |
Max Drawdown (1Y)Largest decline over 1 year | -8.33% | -11.43% | +3.10% |
Max Drawdown (3Y)Largest decline over 3 years | -16.74% | -13.69% | -3.05% |
Max Drawdown (5Y)Largest decline over 5 years | -34.12% | -29.14% | -4.98% |
Max Drawdown (10Y)Largest decline over 10 years | -38.83% | -34.98% | -3.85% |
Current DrawdownCurrent decline from peak | -0.82% | 0.00% | -0.82% |
Average DrawdownAverage peak-to-trough decline | -9.58% | -13.11% | +3.53% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.03% | 2.98% | +0.05% |
Volatility
XLRE vs. VEU - Volatility Comparison
The current volatility for Real Estate Select Sector SPDR Fund (XLRE) is 4.83%, while Vanguard FTSE All-World ex-US ETF (VEU) has a volatility of 6.91%. This indicates that XLRE experiences smaller price fluctuations and is considered to be less risky than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLRE | VEU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.83% | 6.91% | -2.08% |
Volatility (6M)Calculated over the trailing 6-month period | 10.23% | 14.12% | -3.89% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.85% | 16.19% | -2.34% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.11% | 16.25% | +2.86% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.43% | 17.26% | +3.17% |
XLRE vs. VEU - Expense Ratio Comparison
XLRE has a 0.13% expense ratio, which is higher than VEU's 0.04% 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. VEU - Dividend Comparison
XLRE's dividend yield for the trailing twelve months is around 3.11%, more than VEU's 2.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VEU Vanguard FTSE All-World ex-US ETF | 2.58% | 3.09% | 3.24% | 3.32% | 3.12% | 3.08% | 2.00% | 3.10% | 3.27% | 2.66% | 2.96% | 2.95% |
XLRE Real Estate Select Sector SPDR Fund | 3.11% | 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 VEU have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VEU has higher volatility (6.91%) compared to XLRE (4.83%). In terms of maximum drawdown, XLRE dropped -38.83% vs VEU's -61.52%.
On 10-year performance, VEU leads with 10.40% vs 6.91% for XLRE. On fees, VEU is cheaper at 0.04% per year. On volatility, XLRE has been the lower-risk option at 4.83%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VEU has performed better with a 10.40% return vs 6.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VEU is cheaper with a 0.04% expense ratio, compared with 0.13% for XLRE.
XLRE has the higher dividend yield at 3.11%, compared with 2.58% for VEU.
XLRE is categorized as REIT, while VEU is Foreign Large Cap Equities. XLRE tracks Real Estate Select Sector Index, while VEU tracks FTSE All-World ex US Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.13% for XLRE and 0.04% for VEU.
VEU currently has the higher Sharpe Ratio (2.02 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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