XLRE vs. XLC
XLRE (Real Estate Select Sector SPDR Fund) and XLC (Communication Services Select Sector SPDR Fund) are both exchange-traded funds - XLRE is a REIT fund tracking the Real Estate Select Sector Index, while XLC is a Communications Equities fund tracking the S&P Communication Services Select Sector Index. Both are passively managed. Over the past 5 years, XLRE returned 3.10%/yr vs 7.29%/yr for XLC. At a 0.46 correlation, their price movements are largely independent. Both charge a 0.13% expense ratio.
Performance
XLRE vs. XLC - Performance Comparison
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Returns By Period
In the year-to-date period, XLRE achieves a 13.76% return, which is significantly higher than XLC's -5.99% return.
XLRE
- 1D
- -0.07%
- 1M
- 3.96%
- 6M
- 10.88%
- YTD
- 13.76%
- 1Y
- 11.33%
- 3Y*
- 9.06%
- 5Y*
- 3.10%
- 10Y*
- 6.28%
- ALL TIME*
- 7.50%
XLC
- 1D
- -0.69%
- 1M
- 0.79%
- 6M
- -2.47%
- YTD
- -5.99%
- 1Y
- 3.53%
- 3Y*
- 20.18%
- 5Y*
- 7.29%
- 10Y*
- —
- ALL TIME*
- 11.40%
XLRE vs. XLC - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|---|---|---|
XLRE Real Estate Select Sector SPDR Fund | 13.76% | 2.63% | 5.09% | 12.36% | -26.25% | 46.10% | -2.18% | 28.68% | 0.75% |
XLC Communication Services Select Sector SPDR Fund | -5.99% | 23.08% | 34.71% | 52.82% | -37.63% | 15.96% | 26.90% | 31.05% | -16.45% |
Correlation
The correlation between XLRE and XLC is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.32 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.36 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.47 |
Correlation (All Time) Calculated using the full available price history since Jun 19, 2018 | 0.46 |
The correlation between XLRE and XLC shifts across timeframes, from 0.32 (1 year) to 0.47 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLRE vs. XLC — Risk / Return Rank
XLRE
XLC
XLRE vs. XLC - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and Communication Services Select Sector SPDR Fund (XLC). 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 | XLC | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.54 | ||
| Sortino ratioReturn per unit of downside risk | +0.71 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.05 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.37 | 0.31 | +1.06 |
| Martin ratioReturn relative to average drawdown | 3.74 | 0.84 | +2.90 |
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Drawdowns
XLRE vs. XLC - Drawdown Comparison
The maximum XLRE drawdown since its inception was -38.83%, smaller than the maximum XLC drawdown of -46.65%. Use the drawdown chart below to compare losses from any high point for XLRE and XLC.
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Drawdown Indicators
| XLRE | XLC | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.83% | -46.65% | +7.82% |
Max Drawdown (1Y)Largest decline over 1 year | -8.33% | -11.57% | +3.24% |
Max Drawdown (3Y)Largest decline over 3 years | -16.74% | -17.97% | +1.23% |
Max Drawdown (5Y)Largest decline over 5 years | -34.12% | -46.65% | +12.53% |
Max Drawdown (10Y)Largest decline over 10 years | -38.83% | — | — |
Current DrawdownCurrent decline from peak | -0.57% | -7.84% | +7.27% |
Average DrawdownAverage peak-to-trough decline | -9.50% | -10.55% | +1.05% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.03% | 4.22% | -1.19% |
Volatility
XLRE vs. XLC - Volatility Comparison
The current volatility for Real Estate Select Sector SPDR Fund (XLRE) is 4.73%, while Communication Services Select Sector SPDR Fund (XLC) has a volatility of 5.32%. This indicates that XLRE experiences smaller price fluctuations and is considered to be less risky than XLC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLRE | XLC | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.73% | 5.32% | -0.59% |
Volatility (6M)Calculated over the trailing 6-month period | 11.10% | 11.11% | -0.01% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.32% | 13.95% | +0.37% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.15% | 20.79% | -1.64% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.46% | 22.13% | -1.67% |
XLRE vs. XLC - Expense Ratio Comparison
Both XLRE and XLC have an expense ratio of 0.13%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Dividends
XLRE vs. XLC - Dividend Comparison
XLRE's dividend yield for the trailing twelve months is around 3.11%, more than XLC's 1.30% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLC Communication Services Select Sector SPDR Fund | 1.30% | 1.13% | 0.99% | 0.82% | 1.10% | 0.74% | 0.68% | 0.82% | 0.64% | 0.00% | 0.00% | 0.00% |
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 XLC have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLC has higher volatility (5.32%) compared to XLRE (4.73%). In terms of maximum drawdown, XLRE dropped -38.83% vs XLC's -46.65%.
On 5-year performance, XLC leads with 7.29% vs 3.10% for XLRE. Both ETFs have the same 0.13% expense ratio. On volatility, XLRE has been the lower-risk option at 4.73%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, XLC has performed better with a 7.29% return vs 3.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLRE and XLC have the same expense ratio: 0.13% per year.
XLRE has the higher dividend yield at 3.11%, compared with 1.30% for XLC.
XLRE is categorized as REIT, while XLC is Communications Equities. XLRE tracks Real Estate Select Sector Index, while XLC tracks S&P Communication Services Select Sector Index.
XLRE currently has the higher Sharpe Ratio (0.79 vs 0.26), 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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