MDY vs XLRE: Correlation & Overlap
SPDR S&P MidCap 400 ETF (MDY) and Real Estate Select Sector SPDR Fund (XLRE) show a strong relationship: their 3-year correlation of weekly returns is 0.69. 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 MDY and XLRE?
On 3 years of weekly data the MDY/XLRE correlation comes out at 0.69, strong. Lately the two have drifted apart, with the 1-year correlation at 0.58 versus 0.69 over 3 years. The 5-year figure is 0.74, and annualized covariance runs at 189.0 %².
Within MDY's tracked universe of 359 assets, XLRE comes in at #75 by 3-year correlation. On 12-month performance MDY holds a 8.8-point edge, +18.3% against +9.5%. The rolling one-year correlation moved between 0.59 and 0.87 over the past three years, a moderate range.
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.
MDY vs XLRE: side by side
| MDY (SPDR S&P MidCap 400 ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | +9.5% |
| 5-year return | +47.5% | +11.4% |
| Volatility (ann.) | 16.5% | 16.7% |
| Beta vs S&P 500 | 0.91 | 0.57 |
| Max drawdown (3Y) | -24.0% | -16.6% |
| Dividend yield | 1.02% | 3.12% |
| Expense ratio | 0.23% | 0.08% |
| Assets under management | $26.5B | $8.6B |
| Sector / category | ETF · US Small & Mid Cap | Sector ETF |
On the fund side, MDY sits in the Mid-Cap Blend category at State Street Investment Management, with $26.5B under management, 400 holdings, a 0.23% expense ratio, a 1.02% 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 MDY 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 MDY: TWLO (0.95%), P (0.94%), ILMN (0.93%), FTI (0.83%), ATI (0.80%). 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 | MDY | XLRE |
|---|---|---|
| 2022 | -13.3% | -26.2% |
| 2023 | +16.1% | +12.4% |
| 2024 | +13.6% | +5.1% |
| 2025 | +7.2% | +2.6% |
| 2026 | +16.4% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are MDY and XLRE good diversifiers for each other?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between MDY and XLRE?
As of 2026-08-27, the correlation of weekly returns between MDY and XLRE is 0.69 over 3 years, 0.58 over 1 year and 0.74 over 5 years.
Is XLRE a good diversifier for MDY?
Somewhat, no more. With 0.69 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do MDY and XLRE overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/mdy-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
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Related comparisons
Hubs: MDY correlations · XLRE correlations
