XLRE vs. XLY

Last updated Jun 9, 2026

XLRE (Real Estate Select Sector SPDR Fund) and XLY (Consumer Discretionary Select Sector SPDR Fund) are both exchange-traded funds - XLRE is a REIT fund tracking the Real Estate Select Sector Index, while XLY is a Consumer Discretionary Equities fund tracking the Consumer Discretionary Select Sector Index. Both are passively managed. Over the past 10 years, XLRE returned 6.77%/yr vs 12.57%/yr for XLY. At a 0.47 correlation, their price movements are largely independent. Both charge a 0.13% expense ratio.

Performance

XLRE vs. XLY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Real Estate Select Sector SPDR Fund (XLRE) and Consumer Discretionary Select Sector SPDR Fund (XLY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLRE achieves a 9.85% return, which is significantly higher than XLY's -3.17% return. Over the past 10 years, XLRE has underperformed XLY with an annualized return of 6.77%, while XLY has yielded a comparatively higher 12.57% annualized return.

XLRE

• 1D: -1.50%
• 1M: -0.86%
• YTD: 9.85%
• 6M: 9.99%
• 1Y: 8.79%
• 3Y*: 9.56%
• 5Y*: 2.78%
• 10Y*: 6.77%

XLY

• 1D: 0.46%
• 1M: -4.00%
• YTD: -3.17%
• 6M: -1.81%
• 1Y: 9.63%
• 3Y*: 13.63%
• 5Y*: 6.99%
• 10Y*: 12.57%

*Multi-year figures are annualized to reflect compound growth (CAGR)

XLRE vs. XLY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLRE Real Estate Select Sector SPDR Fund	9.85%	2.63%	5.09%	12.36%	-26.25%	46.10%	-2.18%	28.68%	-2.39%	10.69%
XLY Consumer Discretionary Select Sector SPDR Fund	-3.17%	7.37%	26.51%	39.64%	-36.27%	27.93%	29.63%	28.39%	1.58%	22.82%

Correlation

The correlation between XLRE and XLY 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	0.41
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since Oct 9, 2015	0.47

The correlation between XLRE and XLY shifts across timeframes, from 0.32 (1 year) to 0.49 (5 years), reflecting how their relationship changes across market environments.

XLRE vs. XLY - Sectors Allocation Comparison

Sectors	XLRE	XLY
Real Estate	98.0%	-
Basic Materials	1.9%	-
Communication Services	-	1.3%
Consumer Cyclical	-	97.6%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	0.1%
Technology	-	0.9%
Utilities	-	-

Return for Risk

XLRE vs. XLY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XLRE

XLRE Risk / Return Rank: 22
XLRE Sharpe Ratio Rank: 21
XLRE Sortino Ratio Rank: 20
XLRE Omega Ratio Rank: 20
XLRE Calmar Ratio Rank: 24
XLRE Martin Ratio Rank: 24

XLY

XLY Risk / Return Rank: 18
XLY Sharpe Ratio Rank: 19
XLY Sortino Ratio Rank: 18
XLY Omega Ratio Rank: 18
XLY Calmar Ratio Rank: 18
XLY Martin Ratio Rank: 19

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

XLRE vs. XLY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Real Estate Select Sector SPDR Fund (XLRE) and Consumer Discretionary Select Sector SPDR Fund (XLY). 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.

	XLRE	XLY	Difference
Sharpe ratio: Return per unit of total volatility	0.65	0.54	+0.11
Sortino ratio: Return per unit of downside risk	0.95	0.87	+0.08
Omega ratio: Gain probability vs. loss probability	1.12	1.10	+0.02
Calmar ratio: Return relative to maximum drawdown	1.06	0.65	+0.41
Martin ratio: Return relative to average drawdown	2.91	2.01	+0.90
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLRE vs. XLY - Sharpe Ratio Comparison

The current XLRE Sharpe Ratio is 0.65, which is comparable to the XLY Sharpe Ratio of 0.54. The chart below compares the historical Sharpe Ratios of XLRE and XLY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	XLRE	XLY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.65	0.54	+0.11
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.15	0.30	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.33	0.57	-0.24
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.42	-0.07

Drawdowns

XLRE vs. XLY - Drawdown Comparison

The maximum XLRE drawdown since its inception was -38.83%, smaller than the maximum XLY drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for XLRE and XLY.

Drawdown Indicators

	XLRE	XLY	Difference
Max Drawdown Largest peak-to-trough decline	-38.83%	-59.05%	+20.22%
Max Drawdown (1Y) Largest decline over 1 year	-8.33%	-14.98%	+6.65%
Max Drawdown (3Y) Largest decline over 3 years	-16.74%	-26.01%	+9.27%
Max Drawdown (5Y) Largest decline over 5 years	-34.12%	-39.67%	+5.55%
Max Drawdown (10Y) Largest decline over 10 years	-38.83%	-39.67%	+0.84%
Current Drawdown Current decline from peak	-1.82%	-7.15%	+5.33%
Average Drawdown Average peak-to-trough decline	-9.60%	-9.56%	-0.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.03%	4.80%	-1.77%

Volatility

XLRE vs. XLY - Volatility Comparison

The current volatility for Real Estate Select Sector SPDR Fund (XLRE) is 4.31%, while Consumer Discretionary Select Sector SPDR Fund (XLY) has a volatility of 5.32%. This indicates that XLRE experiences smaller price fluctuations and is considered to be less risky than XLY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLRE	XLY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.31%	5.32%	-1.01%
Volatility (6M) Calculated over the trailing 6-month period	10.00%	13.22%	-3.22%
Volatility (1Y) Calculated over the trailing 1-year period	13.70%	18.09%	-4.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.09%	23.80%	-4.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.42%	22.06%	-1.64%

XLRE vs. XLY - Expense Ratio Comparison

Both XLRE and XLY 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. XLY - Dividend Comparison

XLRE's dividend yield for the trailing twelve months is around 3.18%, more than XLY's 0.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XLRE Real Estate Select Sector SPDR Fund	3.18%	3.45%	3.43%	3.31%	3.70%	2.61%	3.15%	3.06%	3.78%	3.25%	4.22%	1.09%
XLY Consumer Discretionary Select Sector SPDR Fund	0.77%	0.79%	0.72%	0.78%	1.00%	0.53%	0.82%	1.28%	1.34%	1.20%	1.71%	1.43%

Frequently Asked Questions

Can I hold both XLRE and XLY in my portfolio?

XLRE and XLY 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.

Which is riskier, XLRE or XLY?

XLY has higher volatility (5.32%) compared to XLRE (4.31%). In terms of maximum drawdown, XLRE dropped -38.83% vs XLY's -59.05%.

Which ETF is better, XLRE or XLY?

On 10-year performance, XLY leads with 12.57% vs 6.77% for XLRE. Both ETFs have the same 0.13% expense ratio. On volatility, XLRE has been the lower-risk option at 4.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLRE or XLY?

Over the 10-year period, XLY has performed better with a 12.57% return vs 6.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLRE or XLY?

XLRE and XLY have the same expense ratio: 0.13% per year.

Which ETF pays a higher dividend yield, XLRE or XLY?

XLRE has the higher dividend yield at 3.18%, compared with 0.77% for XLY.

What is the main difference between XLRE and XLY?

XLRE is categorized as REIT, while XLY is Consumer Discretionary Equities. XLRE tracks Real Estate Select Sector Index, while XLY tracks Consumer Discretionary Select Sector Index.

Which has better risk-adjusted returns?

XLRE currently has the higher Sharpe Ratio (0.65 vs 0.54), 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.