XLRE vs. VNQ
Compare and contrast key facts about Real Estate Select Sector SPDR Fund (XLRE) and Vanguard Real Estate ETF (VNQ).
XLRE and VNQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLRE is a passively managed fund by State Street that tracks the performance of the Real Estate Select Sector Index. It was launched on Oct 7, 2015. VNQ is a passively managed fund by Vanguard that tracks the performance of the MSCI US REIT Index. It was launched on Sep 23, 2004. Both XLRE and VNQ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XLRE or VNQ.
Key characteristics
| XLRE | VNQ | |
|---|---|---|
| YTD Return | -8.37% | -8.50% |
| 1Y Return | 1.18% | 1.56% |
| 3Y Return (Ann) | -1.74% | -2.98% |
| 5Y Return (Ann) | 3.65% | 2.16% |
| Sharpe Ratio | 0.20 | 0.20 |
| Daily Std Dev | 18.56% | 18.93% |
| Max Drawdown | -38.83% | -73.07% |
| Current Drawdown | -24.06% | -24.53% |
Correlation
The correlation between XLRE and VNQ is 0.96, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
XLRE vs. VNQ - Performance Comparison
The year-to-date returns for both stocks are quite close, with XLRE having a -8.37% return and VNQ slightly lower at -8.50%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XLRE vs. VNQ - Expense Ratio Comparison
XLRE has a 0.13% expense ratio, which is higher than VNQ's 0.12% 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%.
Risk-Adjusted Performance
XLRE vs. VNQ - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and Vanguard Real Estate ETF (VNQ). 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.
Dividends
XLRE vs. VNQ - Dividend Comparison
XLRE's dividend yield for the trailing twelve months is around 3.66%, less than VNQ's 4.31% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLRE Real Estate Select Sector SPDR Fund | 3.66% | 3.31% | 3.70% | 2.61% | 3.15% | 3.06% | 3.78% | 3.25% | 4.22% | 1.09% | 0.00% | 0.00% |
VNQ Vanguard Real Estate ETF | 4.31% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% | 3.60% | 4.32% |
Drawdowns
XLRE vs. VNQ - Drawdown Comparison
The maximum XLRE drawdown since its inception was -38.83%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for XLRE and VNQ. For additional features, visit the drawdowns tool.
Volatility
XLRE vs. VNQ - Volatility Comparison
Real Estate Select Sector SPDR Fund (XLRE) and Vanguard Real Estate ETF (VNQ) have volatilities of 5.84% and 5.92%, 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.