XLU vs. XLRE
XLU (State Street Utilities Select Sector SPDR ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both exchange-traded funds - XLU is a Utilities Equities fund tracking the Utilities Select Sector Index, while XLRE is a REIT fund tracking the Real Estate Select Sector Index. Both are passively managed. Over the past 10 years, XLU returned 8.86%/yr vs 6.28%/yr for XLRE. A 0.61 correlation means they provide meaningful diversification when combined. XLU charges 0.08%/yr vs 0.13%/yr for XLRE.
Performance
XLU vs. XLRE - Performance Comparison
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Returns By Period
In the year-to-date period, XLU achieves a 6.64% return, which is significantly lower than XLRE's 13.76% return. Over the past 10 years, XLU has outperformed XLRE with an annualized return of 8.86%, while XLRE has yielded a comparatively lower 6.28% annualized return.
XLU
- 1D
- -0.04%
- 1M
- 1.00%
- 6M
- 5.97%
- YTD
- 6.64%
- 1Y
- 9.91%
- 3Y*
- 12.82%
- 5Y*
- 9.99%
- 10Y*
- 8.86%
- ALL TIME*
- 7.72%
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%
XLU vs. XLRE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLU State Street Utilities Select Sector SPDR ETF | 6.64% | 16.03% | 23.31% | -7.18% | 1.44% | 17.70% | 0.51% | 25.93% | 3.94% | 12.05% |
XLRE Real Estate Select Sector SPDR Fund | 13.76% | 2.63% | 5.09% | 12.36% | -26.25% | 46.10% | -2.18% | 28.68% | -2.39% | 10.69% |
Correlation
The correlation between XLU and XLRE is 0.50, 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 | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.55 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.62 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.63 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.61 |
The correlation between XLU and XLRE shifts across timeframes, from 0.50 (1 year) to 0.63 (10 years), reflecting how their relationship changes across market environments.
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Return for Risk
XLU vs. XLRE — Risk / Return Rank
XLU
XLRE
XLU vs. XLRE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for State Street Utilities Select Sector SPDR ETF (XLU) and Real Estate Select Sector SPDR Fund (XLRE). 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.
| XLU | XLRE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.12 | ||
| Sortino ratioReturn per unit of downside risk | -0.16 | ||
| Omega ratioGain probability vs. loss probability | 1.12 | 1.14 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 1.08 | 1.37 | -0.28 |
| Martin ratioReturn relative to average drawdown | 2.24 | 3.74 | -1.50 |
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Drawdowns
XLU vs. XLRE - Drawdown Comparison
The maximum XLU drawdown since its inception was -51.98%, which is greater than XLRE's maximum drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for XLU and XLRE.
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Drawdown Indicators
| XLU | XLRE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -51.98% | -38.83% | -13.15% |
Max Drawdown (1Y)Largest decline over 1 year | -9.18% | -8.33% | -0.85% |
Max Drawdown (3Y)Largest decline over 3 years | -17.26% | -16.74% | -0.52% |
Max Drawdown (5Y)Largest decline over 5 years | -25.26% | -34.12% | +8.86% |
Max Drawdown (10Y)Largest decline over 10 years | -36.07% | -38.83% | +2.76% |
Current DrawdownCurrent decline from peak | -4.62% | -0.57% | -4.05% |
Average DrawdownAverage peak-to-trough decline | -10.20% | -9.50% | -0.70% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.43% | 3.03% | +1.40% |
Volatility
XLU vs. XLRE - Volatility Comparison
The current volatility for State Street Utilities Select Sector SPDR ETF (XLU) is 4.26%, while Real Estate Select Sector SPDR Fund (XLRE) has a volatility of 4.73%. This indicates that XLU experiences smaller price fluctuations and is considered to be less risky than XLRE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLU | XLRE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.26% | 4.73% | -0.47% |
Volatility (6M)Calculated over the trailing 6-month period | 11.76% | 11.10% | +0.66% |
Volatility (1Y)Calculated over the trailing 1-year period | 14.84% | 14.32% | +0.52% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.32% | 19.15% | -1.83% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.29% | 20.46% | -1.17% |
XLU vs. XLRE - Expense Ratio Comparison
XLU has a 0.08% expense ratio, which is lower than XLRE's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
XLU vs. XLRE - Dividend Comparison
XLU's dividend yield for the trailing twelve months is around 2.66%, less than XLRE's 3.11% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
XLU State Street Utilities Select Sector SPDR ETF | 2.66% | 2.71% | 2.96% | 3.39% | 2.92% | 2.79% | 3.14% | 2.95% | 3.33% | 3.33% | 3.41% | 3.67% |
Frequently Asked Questions
XLU and XLRE have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLRE has higher volatility (4.73%) compared to XLU (4.26%). In terms of maximum drawdown, XLU dropped -51.98% vs XLRE's -38.83%.
On 10-year performance, XLU leads with 8.86% vs 6.28% for XLRE. On fees, XLU is cheaper at 0.08% per year. On volatility, XLU has been the lower-risk option at 4.26%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLU has performed better with a 8.86% return vs 6.28%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLU is cheaper with a 0.08% expense ratio, compared with 0.13% for XLRE.
XLRE has the higher dividend yield at 3.11%, compared with 2.66% for XLU.
XLU is categorized as Utilities Equities, while XLRE is REIT. XLU tracks Utilities Select Sector Index, while XLRE tracks Real Estate Select Sector Index. Their fees differ too: 0.08% for XLU and 0.13% for XLRE.
XLRE currently has the higher Sharpe Ratio (0.79 vs 0.67), 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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