ACWI vs XLRE: Correlation & Overlap
Measured on weekly returns over the past three years, iShares MSCI ACWI ETF (ACWI) and Real Estate Select Sector SPDR Fund (XLRE) carry a correlation of 0.54, a moderate link. The two funds also share 1.1% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and XLRE?
Over the past 3 years, ACWI and XLRE moved with a correlation of 0.54, which is moderate. The link has loosened recently: the 1-year correlation (0.34) runs below the 3-year figure (0.54). Over 5 years the correlation is 0.68, and the annualized covariance of weekly returns is 124.9 %².
Within ACWI's tracked universe of 119 assets, XLRE comes in at #86 by 3-year correlation. The trailing year gives ACWI the advantage: +22.7% versus +9.5%, a 13.2-point spread. The relationship is regime-dependent: the rolling one-year correlation swung between 0.34 and 0.87 over the past three years, so this pair behaves very differently depending on the market environment.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ACWI vs XLRE: side by side
| ACWI (iShares MSCI ACWI ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +22.7% | +9.5% |
| 5-year return | +69.0% | +11.4% |
| Volatility (ann.) | 13.8% | 16.7% |
| Beta vs S&P 500 | 0.92 | 0.57 |
| Max drawdown (3Y) | -16.5% | -16.6% |
| Dividend yield | 1.44% | 3.12% |
| Expense ratio | 0.32% | 0.08% |
| Assets under management | $32.5B | $8.6B |
| Sector / category | ETF · Global | Sector ETF |
ACWI is a Global Large-Stock Blend fund from iShares: $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. On the fund side, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Portfolio overlap between ACWI and XLRE
The two portfolios are largely distinct, with 23 holdings in common adding up to 1.1% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in ACWI | Weight in XLRE |
|---|---|---|
| WELL | 0.16% | 11.43% |
| PLD | 0.13% | 9.06% |
| EQIX | 0.10% | 7.14% |
| AMT | 0.08% | 5.49% |
| SPG | 0.07% | 4.72% |
| DLR | 0.06% | 5.01% |
| O | 0.05% | 4.46% |
| PSA | 0.05% | 4.63% |
| VMRK | 0.05% | 4.96% |
| CBRE | 0.04% | 4.45% |
| VTR | 0.04% | 4.59% |
| VICI | 0.03% | 2.87% |
| IRM | 0.03% | 3.65% |
| EXR | 0.03% | 3.08% |
| CCI | 0.03% | 3.33% |
Largest positions held only by ACWI: NVDA (4.64%), AAPL (4.41%), MSFT (3.35%), AMZN (2.41%), GOOGL (1.91%). Only by XLRE: DOC (1.50%), HST (1.44%), UDR (1.13%), CPT (1.09%), BXP (1.05%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | ACWI | XLRE |
|---|---|---|
| 2022 | -18.4% | -26.2% |
| 2023 | +22.3% | +12.4% |
| 2024 | +17.4% | +5.1% |
| 2025 | +22.4% | +2.6% |
| 2026 | +14.9% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and XLRE good diversifiers for each other?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ACWI and XLRE?
As of 2026-08-27, the correlation of weekly returns between ACWI and XLRE is 0.54 over 3 years, 0.34 over 1 year and 0.68 over 5 years.
Is XLRE a good diversifier for ACWI?
Somewhat, no more. With 0.54 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do ACWI and XLRE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.1% by weight over 23 common positions.
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Related comparisons
Hubs: ACWI correlations · XLRE correlations
