IVV vs XLRE: Correlation & Overlap
How closely do iShares Core S&P 500 ETF (IVV) and Real Estate Select Sector SPDR Fund (XLRE) trade together? Their weekly returns over three years give a correlation of 0.49, which is moderate. By holdings, the two funds overlap 1.8% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVV and XLRE?
Across a 3-year window, the weekly returns of IVV and XLRE correlate at 0.49, moderate. The past 12 months show a weaker link (0.24) than the 3-year average (0.49). Stretching to 5 years gives 0.66, with an annualized covariance of 118.3 %².
By 3-year correlation, XLRE places #96 of the 122 assets tracked against IVV. On 12-month performance IVV holds a 11.2-point edge, +20.7% against +9.5%. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.23 to 0.87.
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.
IVV vs XLRE: side by side
| IVV (iShares Core S&P 500 ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.7% | +9.5% |
| 5-year return | +83.0% | +11.4% |
| Volatility (ann.) | 14.5% | 16.7% |
| Beta vs S&P 500 | 1.00 | 0.57 |
| Max drawdown (3Y) | -18.8% | -16.6% |
| Dividend yield | 1.09% | 3.12% |
| Expense ratio | 0.03% | 0.08% |
| Assets under management | $869.2B | $8.6B |
| Sector / category | ETF · US Large Cap | Sector ETF |
On the fund side, IVV sits in the Large Blend category at iShares, with $869.2B under management, 503 holdings, a 0.03% expense ratio, a 1.09% 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 IVV and XLRE
The two portfolios are largely distinct: 1.8% of the funds' weight sits in the same underlying holdings (30 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in IVV | Weight in XLRE |
|---|---|---|
| WELL | 0.26% | 11.43% |
| PLD | 0.20% | 9.06% |
| EQIX | 0.16% | 7.14% |
| AMT | 0.12% | 5.49% |
| SPG | 0.11% | 4.72% |
| DLR | 0.10% | 5.01% |
| O | 0.09% | 4.46% |
| PSA | 0.08% | 4.63% |
| CBRE | 0.07% | 4.45% |
| VMRK | 0.07% | 4.96% |
| VTR | 0.07% | 4.59% |
| IRM | 0.05% | 3.65% |
| EXR | 0.05% | 3.08% |
| CCI | 0.05% | 3.33% |
| VICI | 0.04% | 2.87% |
Largest positions held only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), AMZN (3.85%), GOOGL (3.03%). Only by XLRE: XARU6 (0.00%).
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 | IVV | XLRE |
|---|---|---|
| 2022 | -18.2% | -26.2% |
| 2023 | +26.3% | +12.4% |
| 2024 | +24.9% | +5.1% |
| 2025 | +17.8% | +2.6% |
| 2026 | +13.7% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVV and XLRE good diversifiers for each other?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
FAQ
What is the correlation between IVV and XLRE?
Using weekly returns as of 2026-08-27: 0.49 over 3 years, with 0.24 over the last year and 0.66 over 5 years.
Is XLRE a good diversifier for IVV?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
How much do IVV and XLRE overlap?
The two funds share 30 holdings amounting to 1.8% of weight, per issuer portfolio files dated 2026-08-26.
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Related comparisons
Hubs: IVV correlations · XLRE correlations
