NNN vs XLRE: Correlation
Measured on weekly returns over the past three years, NNN REIT, Inc. (NNN) and Real Estate Select Sector SPDR Fund (XLRE) carry a correlation of 0.79, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NNN and XLRE?
Across a 3-year window, the weekly returns of NNN and XLRE correlate at 0.79, strong. Little has changed lately, as the 1-year reading of 0.80 lands near the 3-year figure. Stretching to 5 years gives 0.79, with an annualized covariance of 248.8 %².
In NNN's tracked universe of 34 assets, XLRE sits right near the top at #2. Their 12-month results are close: +13.1% for NNN against +9.5% for XLRE.
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.
NNN vs XLRE: side by side
| NNN (NNN REIT, Inc.) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +13.1% | +9.5% |
| 5-year return | +25.1% | +11.4% |
| Volatility (ann.) | 18.8% | 16.7% |
| Beta vs S&P 500 | 0.31 | 0.57 |
| Max drawdown (3Y) | -22.0% | -16.6% |
| Market cap | $8.6B | – |
| P/E (trailing) | 22.3 | – |
| Dividend yield | 5.26% | 3.12% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.6B |
| Sector / category | US Listed | Sector ETF |
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.
Year-by-year returns
| Year | NNN | XLRE |
|---|---|---|
| 2022 | -0.0% | -26.2% |
| 2023 | -0.6% | +12.4% |
| 2024 | -0.1% | +5.1% |
| 2025 | +2.8% | +2.6% |
| 2026 | +19.2% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NNN and XLRE good diversifiers for each other?
Somewhat, no more. With 0.79 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between NNN and XLRE?
The NNN/XLRE correlation stands at 0.79 on a 3-year window (1 year: 0.80, 5 years: 0.79), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for NNN?
Somewhat, no more. With 0.79 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.79 mean?
A reading of 0.79 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
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Related comparisons
Hubs: NNN correlations · XLRE correlations
