IWM vs XLRE: Correlation & Overlap
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and Real Estate Select Sector SPDR Fund (XLRE) carry a correlation of 0.66, a strong link. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and XLRE?
On 3 years of weekly data the IWM/XLRE correlation comes out at 0.66, strong. The past 12 months show a weaker link (0.51) than the 3-year average (0.66). The 5-year figure is 0.70, and annualized covariance runs at 218.1 %².
By 3-year correlation, XLRE places #66 of the 320 assets tracked against IWM. Correlation aside, the last 12 months split them widely, with IWM ahead by 18.9 points (+28.4% versus +9.5%). Across three years, the rolling one-year figure varied moderately, from 0.51 to 0.84.
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.
IWM vs XLRE: side by side
| IWM (iShares Russell 2000 ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +28.4% | +9.5% |
| 5-year return | +41.5% | +11.4% |
| Volatility (ann.) | 19.8% | 16.7% |
| Beta vs S&P 500 | 1.06 | 0.57 |
| Max drawdown (3Y) | -27.5% | -16.6% |
| Dividend yield | 0.91% | 3.12% |
| Expense ratio | 0.19% | 0.08% |
| Assets under management | $80.1B | $8.6B |
| Sector / category | ETF · US Small & Mid Cap | Sector ETF |
On the fund side, IWM sits in the Small Blend category at iShares, with $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% 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 IWM and XLRE
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by IWM: MOGA (0.35%), UMBF (0.34%), CYTK (0.33%), GKOS (0.33%), EAT (0.33%). 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 | IWM | XLRE |
|---|---|---|
| 2022 | -20.5% | -26.2% |
| 2023 | +16.8% | +12.4% |
| 2024 | +11.4% | +5.1% |
| 2025 | +12.7% | +2.6% |
| 2026 | +22.3% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and XLRE good diversifiers for each other?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IWM and XLRE?
The IWM/XLRE correlation stands at 0.66 on a 3-year window (1 year: 0.51, 5 years: 0.70), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for IWM?
Somewhat, no more. With 0.66 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do IWM and XLRE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iwm-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/iwm-vs-xlre/)
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Related comparisons
Hubs: IWM correlations · XLRE correlations
