NRO vs XLRE: Correlation
How closely do Neuberger Real Estate Securities Income Fund Inc. (NRO) and Real Estate Select Sector SPDR Fund (XLRE) trade together? Their weekly returns over three years give a correlation of 0.78, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NRO and XLRE?
Over the past 3 years, NRO and XLRE moved with a correlation of 0.78, which is strong. The relationship has been stable: the 1-year correlation (0.70) sits close to the 3-year figure. Over 5 years the correlation is 0.81, and the annualized covariance of weekly returns is 246.7 %².
By 3-year correlation, XLRE places #6 of the 17 assets tracked against NRO. The trailing year gives XLRE the advantage: +2.5% versus +9.5%, a 7.0-point spread.
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.
NRO vs XLRE: side by side
| NRO (Neuberger Real Estate Securities Income Fund Inc.) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +2.5% | +9.5% |
| 5-year return | +2.7% | +11.4% |
| Volatility (ann.) | 18.9% | 16.7% |
| Beta vs S&P 500 | 0.70 | 0.57 |
| Max drawdown (3Y) | -24.8% | -16.6% |
| Market cap | $0.2B | – |
| P/E (trailing) | 8.2 | – |
| Dividend yield | 0.00% | 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 | NRO | XLRE |
|---|---|---|
| 2022 | -35.1% | -26.2% |
| 2023 | +15.1% | +12.4% |
| 2024 | +23.8% | +5.1% |
| 2025 | +0.8% | +2.6% |
| 2026 | +5.0% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NRO and XLRE good diversifiers for each other?
Somewhat, no more. With 0.78 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between NRO and XLRE?
The NRO/XLRE correlation stands at 0.78 on a 3-year window (1 year: 0.70, 5 years: 0.81), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for NRO?
Somewhat, no more. With 0.78 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.78 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
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Related comparisons
Hubs: NRO correlations · XLRE correlations
