XLRE vs. XLE
XLRE (Real Estate Select Sector SPDR Fund) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - XLRE is a REIT fund tracking the Real Estate Select Sector Index, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, XLRE returned 6.92%/yr vs 9.37%/yr for XLE. At a 0.26 correlation, their price movements are largely independent. XLRE charges 0.13%/yr vs 0.08%/yr for XLE.
Performance
XLRE vs. XLE - Performance Comparison
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Returns By Period
In the year-to-date period, XLRE achieves a 12.35% return, which is significantly lower than XLE's 23.49% return. Over the past 10 years, XLRE has underperformed XLE with an annualized return of 6.92%, while XLE has yielded a comparatively higher 9.37% 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%
XLE
- 1D
- 0.74%
- 1M
- -7.80%
- YTD
- 23.49%
- 6M
- 24.07%
- 1Y
- 30.55%
- 3Y*
- 15.73%
- 5Y*
- 18.87%
- 10Y*
- 9.37%
XLRE vs. XLE - 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% |
XLE State Street Energy Select Sector SPDR ETF | 23.49% | 7.88% | 5.56% | -0.63% | 64.32% | 53.28% | -32.67% | 11.74% | -18.22% | -0.89% |
Correlation
The correlation between XLRE and XLE is 0.12, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.12 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.21 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.23 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.25 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.26 |
The correlation between XLRE and XLE shifts across timeframes, from 0.12 (1 year) to 0.26 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
XLRE vs. XLE — Risk / Return Rank
XLRE
XLE
XLRE vs. XLE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and State Street Energy Select Sector SPDR ETF (XLE). 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 | XLE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.78 | ||
| Sortino ratioReturn per unit of downside risk | -0.98 | ||
| Omega ratioGain probability vs. loss probability | 1.13 | 1.25 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 1.18 | 2.18 | -1.00 |
| Martin ratioReturn relative to average drawdown | 3.23 | 6.53 | -3.30 |
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Drawdowns
XLRE vs. XLE - Drawdown Comparison
The maximum XLRE drawdown since its inception was -38.83%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for XLRE and XLE.
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Drawdown Indicators
| XLRE | XLE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.83% | -71.26% | +32.43% |
Max Drawdown (1Y)Largest decline over 1 year | -8.33% | -14.05% | +5.72% |
Max Drawdown (3Y)Largest decline over 3 years | -16.74% | -20.14% | +3.40% |
Max Drawdown (5Y)Largest decline over 5 years | -34.12% | -26.04% | -8.08% |
Max Drawdown (10Y)Largest decline over 10 years | -38.83% | -66.81% | +27.98% |
Current DrawdownCurrent decline from peak | -0.72% | -12.32% | +11.60% |
Average DrawdownAverage peak-to-trough decline | -9.56% | -17.96% | +8.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.04% | 4.69% | -1.65% |
Volatility
XLRE vs. XLE - Volatility Comparison
The current volatility for Real Estate Select Sector SPDR Fund (XLRE) is 5.35%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 7.12%. This indicates that XLRE experiences smaller price fluctuations and is considered to be less risky than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLRE | XLE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.35% | 7.12% | -1.77% |
Volatility (6M)Calculated over the trailing 6-month period | 10.63% | 16.82% | -6.19% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.17% | 20.93% | -6.76% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.13% | 25.98% | -6.85% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.45% | 29.60% | -9.15% |
XLRE vs. XLE - Expense Ratio Comparison
XLRE has a 0.13% expense ratio, which is higher than XLE's 0.08% 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. XLE - Dividend Comparison
XLRE's dividend yield for the trailing twelve months is around 3.15%, more than XLE's 2.79% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLE State Street Energy Select Sector SPDR ETF | 2.79% | 3.28% | 3.36% | 3.55% | 3.68% | 4.21% | 5.62% | 6.72% | 3.54% | 3.03% | 2.26% | 3.39% |
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
XLRE and XLE have a correlation of 0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLE has higher volatility (7.12%) compared to XLRE (5.35%). In terms of maximum drawdown, XLRE dropped -38.83% vs XLE's -71.26%.
On 10-year performance, XLE leads with 9.37% vs 6.92% for XLRE. On fees, XLE is cheaper at 0.08% per year. On volatility, XLRE has been the lower-risk option at 5.35%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLE has performed better with a 9.37% return vs 6.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLE is cheaper with a 0.08% expense ratio, compared with 0.13% for XLRE.
XLRE has the higher dividend yield at 3.15%, compared with 2.79% for XLE.
XLRE is categorized as REIT, while XLE is Energy Equities. XLRE tracks Real Estate Select Sector Index, while XLE tracks Energy Select Sector Index. Their fees differ too: 0.13% for XLRE and 0.08% for XLE.
XLE currently has the higher Sharpe Ratio (1.48 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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