XLRE vs. VGSIX
XLRE (Real Estate Select Sector SPDR Fund) and VGSIX (Vanguard Real Estate Index Fund) are both REIT funds. Over the past 10 years, XLRE returned 6.92%/yr vs 4.95%/yr for VGSIX. With a 0.97 correlation, they move nearly in lockstep. XLRE charges 0.13%/yr vs 0.26%/yr for VGSIX.
Performance
XLRE vs. VGSIX - 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 VGSIX's 10.27% return. Over the past 10 years, XLRE has outperformed VGSIX with an annualized return of 6.92%, while VGSIX has yielded a comparatively lower 4.95% 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%
VGSIX
- 1D
- 1.07%
- 1M
- -0.19%
- YTD
- 10.27%
- 6M
- 10.65%
- 1Y
- 10.06%
- 3Y*
- 9.99%
- 5Y*
- 2.02%
- 10Y*
- 4.95%
XLRE vs. VGSIX - 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% |
VGSIX Vanguard Real Estate Index Fund | 10.27% | 2.04% | 2.67% | 12.97% | -26.29% | 40.18% | -4.87% | 28.74% | -6.14% | 4.80% |
Correlation
The correlation between XLRE and VGSIX is 0.98 - 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 | 0.98 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.99 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.97 |
The correlation between XLRE and VGSIX 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. VGSIX — Risk / Return Rank
XLRE
VGSIX
XLRE vs. VGSIX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and Vanguard Real Estate Index Fund (VGSIX). 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 | VGSIX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.15 | ||
| Sortino ratioReturn per unit of downside risk | -0.21 | ||
| Omega ratioGain probability vs. loss probability | 1.13 | 1.15 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.18 | 1.40 | -0.22 |
| Martin ratioReturn relative to average drawdown | 3.23 | 4.37 | -1.14 |
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Drawdowns
XLRE vs. VGSIX - Drawdown Comparison
The maximum XLRE drawdown since its inception was -38.83%, smaller than the maximum VGSIX drawdown of -73.13%. Use the drawdown chart below to compare losses from any high point for XLRE and VGSIX.
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Drawdown Indicators
| XLRE | VGSIX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.83% | -73.13% | +34.30% |
Max Drawdown (1Y)Largest decline over 1 year | -8.33% | -8.32% | -0.01% |
Max Drawdown (3Y)Largest decline over 3 years | -16.74% | -18.62% | +1.88% |
Max Drawdown (5Y)Largest decline over 5 years | -34.12% | -34.58% | +0.46% |
Max Drawdown (10Y)Largest decline over 10 years | -38.83% | -42.35% | +3.52% |
Current DrawdownCurrent decline from peak | -0.72% | -3.81% | +3.09% |
Average DrawdownAverage peak-to-trough decline | -9.56% | -11.86% | +2.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.04% | 2.66% | +0.38% |
Volatility
XLRE vs. VGSIX - Volatility Comparison
Real Estate Select Sector SPDR Fund (XLRE) has a higher volatility of 5.35% compared to Vanguard Real Estate Index Fund (VGSIX) at 5.06%. This indicates that XLRE's price experiences larger fluctuations and is considered to be riskier than VGSIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLRE | VGSIX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.35% | 5.06% | +0.29% |
Volatility (6M)Calculated over the trailing 6-month period | 10.63% | 10.15% | +0.48% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.17% | 13.81% | +0.36% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.13% | 18.93% | +0.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.45% | 20.90% | -0.45% |
XLRE vs. VGSIX - Expense Ratio Comparison
XLRE has a 0.13% expense ratio, which is lower than VGSIX's 0.26% expense ratio. Despite the difference, 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. VGSIX - Dividend Comparison
XLRE's dividend yield for the trailing twelve months is around 3.15%, less than VGSIX's 3.47% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VGSIX Vanguard Real Estate Index Fund | 3.47% | 2.76% | 2.83% | 3.77% | 3.75% | 2.43% | 3.78% | 3.24% | 4.59% | 4.09% | 4.67% | 3.78% |
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 0.98, XLRE and VGSIX 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.
XLRE has higher volatility (5.35%) compared to VGSIX (5.06%). In terms of maximum drawdown, XLRE dropped -38.83% vs VGSIX's -73.13%.
VGSIX currently has the higher Sharpe Ratio (0.85 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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