DGRO vs XLRE: Correlation & Overlap
How closely do iShares Core Dividend Growth ETF (DGRO) and Real Estate Select Sector SPDR Fund (XLRE) trade together? Their weekly returns over three years give a correlation of 0.72, which is strong. Looking through to holdings, 0% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DGRO and XLRE?
On 3 years of weekly data the DGRO/XLRE correlation comes out at 0.72, strong. Little has changed lately, as the 1-year reading of 0.65 lands near the 3-year figure. The 5-year figure is 0.78, and annualized covariance runs at 136.7 %².
By 3-year correlation, XLRE places #32 of the 138 assets tracked against DGRO. The trailing year gives DGRO the advantage: +21.0% versus +9.5%, a 11.5-point spread. Stability stands out here, with the rolling one-year correlation confined to 0.63 through 0.86.
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.
DGRO vs XLRE: side by side
| DGRO (iShares Core Dividend Growth ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.0% | +9.5% |
| 5-year return | +67.9% | +11.4% |
| Volatility (ann.) | 11.4% | 16.7% |
| Beta vs S&P 500 | 0.65 | 0.57 |
| Max drawdown (3Y) | -14.0% | -16.6% |
| Dividend yield | 1.89% | 3.12% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $42.8B | $8.6B |
| Sector / category | ETF · Dividend | Sector ETF |
DGRO is a Large Value fund from iShares: $42.8B under management, 383 holdings, a 0.08% expense ratio, a 1.89% 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 DGRO and XLRE
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by DGRO: MSFT (3.39%), JNJ (3.16%), JPM (3.14%), ABBV (3.03%), XOM (2.86%). Only by XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26.
Year-by-year returns
| Year | DGRO | XLRE |
|---|---|---|
| 2022 | -7.9% | -26.2% |
| 2023 | +10.5% | +12.4% |
| 2024 | +16.6% | +5.1% |
| 2025 | +15.7% | +2.6% |
| 2026 | +15.2% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DGRO and XLRE good diversifiers for each other?
Only partially. A correlation of 0.72 means DGRO and XLRE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between DGRO and XLRE?
The DGRO/XLRE correlation stands at 0.72 on a 3-year window (1 year: 0.65, 5 years: 0.78), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for DGRO?
Only partially. A correlation of 0.72 means DGRO and XLRE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do DGRO and XLRE overlap?
The two funds share 0 holdings amounting to 0% of weight, per issuer portfolio files dated 2026-08-26.
Use this data
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Related comparisons
Hubs: DGRO correlations · XLRE correlations
