XLRE vs. VO
XLRE (Real Estate Select Sector SPDR Fund) and VO (Vanguard Mid-Cap ETF) are both exchange-traded funds - XLRE is a REIT fund tracking the Real Estate Select Sector Index, while VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid Cap Index. Both are passively managed. Over the past 10 years, XLRE returned 7.15%/yr vs 11.77%/yr for VO. A 0.62 correlation means they provide meaningful diversification when combined. XLRE charges 0.13%/yr vs 0.03%/yr for VO.
Performance
XLRE vs. VO - Performance Comparison
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Returns By Period
In the year-to-date period, XLRE achieves a 13.17% return, which is significantly higher than VO's 10.43% return. Over the past 10 years, XLRE has underperformed VO with an annualized return of 7.15%, while VO has yielded a comparatively higher 11.77% 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%
VO
- 1D
- 0.97%
- 1M
- 2.97%
- YTD
- 10.43%
- 6M
- 9.31%
- 1Y
- 19.60%
- 3Y*
- 15.74%
- 5Y*
- 7.79%
- 10Y*
- 11.77%
XLRE vs. VO - 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% |
VO Vanguard Mid-Cap ETF | 10.43% | 11.62% | 15.31% | 16.03% | -18.73% | 24.70% | 18.10% | 30.98% | -9.24% | 19.28% |
Correlation
The correlation between XLRE and VO is 0.55, 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 | 0.55 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.64 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.62 |
The correlation between XLRE and VO shifts across timeframes, from 0.55 (1 year) to 0.69 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLRE vs. VO — Risk / Return Rank
XLRE
VO
XLRE vs. VO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and Vanguard Mid-Cap ETF (VO). 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 | VO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.62 | ||
| Sortino ratioReturn per unit of downside risk | -0.88 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.25 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 1.34 | 2.23 | -0.89 |
| Martin ratioReturn relative to average drawdown | 3.69 | 8.44 | -4.74 |
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Drawdowns
XLRE vs. VO - Drawdown Comparison
The maximum XLRE drawdown since its inception was -38.83%, smaller than the maximum VO drawdown of -58.87%. Use the drawdown chart below to compare losses from any high point for XLRE and VO.
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Drawdown Indicators
| XLRE | VO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.83% | -58.87% | +20.04% |
Max Drawdown (1Y)Largest decline over 1 year | -8.33% | -8.17% | -0.16% |
Max Drawdown (3Y)Largest decline over 3 years | -16.74% | -19.02% | +2.28% |
Max Drawdown (5Y)Largest decline over 5 years | -34.12% | -27.57% | -6.55% |
Max Drawdown (10Y)Largest decline over 10 years | -38.83% | -39.37% | +0.54% |
Current DrawdownCurrent decline from peak | 0.00% | -0.45% | +0.45% |
Average DrawdownAverage peak-to-trough decline | -9.58% | -7.85% | -1.73% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.03% | 2.16% | +0.87% |
Volatility
XLRE vs. VO - Volatility Comparison
Real Estate Select Sector SPDR Fund (XLRE) has a higher volatility of 4.81% compared to Vanguard Mid-Cap ETF (VO) at 4.31%. This indicates that XLRE's price experiences larger fluctuations and is considered to be riskier than VO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLRE | VO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.81% | 4.31% | +0.50% |
Volatility (6M)Calculated over the trailing 6-month period | 10.20% | 9.71% | +0.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 13.83% | 12.74% | +1.09% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.10% | 17.65% | +1.45% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.42% | 18.96% | +1.46% |
XLRE vs. VO - Expense Ratio Comparison
XLRE has a 0.13% expense ratio, which is higher than VO's 0.03% 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. VO - Dividend Comparison
XLRE's dividend yield for the trailing twelve months is around 3.08%, more than VO's 1.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VO Vanguard Mid-Cap ETF | 1.36% | 1.52% | 1.49% | 1.52% | 1.60% | 1.12% | 1.45% | 1.48% | 1.82% | 1.35% | 1.45% | 1.47% |
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
XLRE and VO have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLRE has higher volatility (4.81%) compared to VO (4.31%). In terms of maximum drawdown, XLRE dropped -38.83% vs VO's -58.87%.
On 10-year performance, VO leads with 11.77% vs 7.15% for XLRE. On fees, VO is cheaper at 0.03% per year. On volatility, VO has been the lower-risk option at 4.31%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VO has performed better with a 11.77% return vs 7.15%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VO is cheaper with a 0.03% expense ratio, compared with 0.13% for XLRE.
XLRE has the higher dividend yield at 3.08%, compared with 1.36% for VO.
XLRE is categorized as REIT, while VO is Mid Cap Blend Equities. XLRE tracks Real Estate Select Sector Index, while VO tracks CRSP US Mid Cap Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.13% for XLRE and 0.03% for VO.
VO currently has the higher Sharpe Ratio (1.43 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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