SPY vs XLRE: Correlation & Overlap
How closely do SPDR S&P 500 ETF Trust (SPY) 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 SPY and XLRE?
On 3 years of weekly data the SPY/XLRE correlation comes out at 0.49, moderate. The past 12 months show a weaker link (0.24) than the 3-year average (0.49). The 5-year figure is 0.67, and annualized covariance runs at 119.0 %².
By 3-year correlation, XLRE places #511 of the 4755 assets tracked against SPY. Over the last 12 months SPY came out ahead by 11.1 percentage points (+20.6% against +9.5%). The relationship is regime-dependent: the rolling one-year correlation swung between 0.24 and 0.87 over the past three years, so this pair behaves very differently depending on the market environment.
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.
SPY vs XLRE: side by side
| SPY (SPDR S&P 500 ETF Trust) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +20.6% | +9.5% |
| 5-year return | +82.4% | +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 | 1.01% | 3.12% |
| Expense ratio | 0.09% | 0.08% |
| Assets under management | $795.3B | $8.6B |
| Sector / category | ETF · US Large Cap | Sector ETF |
SPY, State Street Investment Management's Large Blend fund, carries $795.3B under management, 504 holdings, a 0.09% expense ratio, a 1.01% 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 SPY and XLRE
The two portfolios are largely distinct. Weighing the shared positions, 1.8% of the two funds is identical, spread across 30 common holdings. That shared book is a large part of why the returns line up.
| Common holding | Weight in SPY | 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% |
| VMRK | 0.07% | 4.96% |
| VTR | 0.07% | 4.59% |
| CBRE | 0.07% | 4.45% |
| IRM | 0.05% | 3.65% |
| CCI | 0.05% | 3.33% |
| EXR | 0.05% | 3.08% |
| VICI | 0.04% | 2.87% |
Largest positions held only by SPY: NVDA (7.68%), AAPL (6.96%), MSFT (5.58%), 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 | SPY | XLRE |
|---|---|---|
| 2022 | -18.2% | -26.2% |
| 2023 | +26.2% | +12.4% |
| 2024 | +24.9% | +5.1% |
| 2025 | +17.7% | +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 SPY 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 SPY and XLRE?
The SPY/XLRE correlation stands at 0.49 on a 3-year window (1 year: 0.24, 5 years: 0.67), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for SPY?
Yes, to a useful degree: a correlation of 0.49 leaves real independence between the two, which historically damped combined volatility.
How much do SPY and XLRE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.8% by weight over 30 common positions.
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Hubs: SPY correlations · XLRE correlations
