USMV vs XLRE: Correlation & Overlap
How closely do iShares MSCI USA Min Vol Factor ETF (USMV) and Real Estate Select Sector SPDR Fund (XLRE) trade together? Their weekly returns over three years give a correlation of 0.68, which is strong. By holdings, the two funds overlap 2.4% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USMV and XLRE?
Over the past 3 years, USMV and XLRE moved with a correlation of 0.68, which is strong. Lately the two have drifted apart, with the 1-year correlation at 0.49 versus 0.68 over 3 years. Over 5 years the correlation is 0.78, and the annualized covariance of weekly returns is 112.1 %².
By 3-year correlation, XLRE places #26 of the 125 assets tracked against USMV. Twelve-month performance is nearly a tie, at +10.1% for USMV and +9.5% for XLRE. Across three years, the rolling one-year figure varied moderately, from 0.50 to 0.82. Note the risk asymmetry: XLRE runs 1.7 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
USMV vs XLRE: side by side
| USMV (iShares MSCI USA Min Vol Factor ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +10.1% | +9.5% |
| 5-year return | +42.3% | +11.4% |
| Volatility (ann.) | 9.9% | 16.7% |
| Beta vs S&P 500 | 0.51 | 0.57 |
| Max drawdown (3Y) | -9.4% | -16.6% |
| Dividend yield | 1.48% | 3.12% |
| Expense ratio | 0.15% | 0.08% |
| Assets under management | $23.6B | $8.6B |
| Sector / category | ETF · US Style | Sector ETF |
USMV, iShares's Large Blend fund, carries $23.6B under management, 164 holdings, a 0.15% expense ratio, a 1.48% 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 USMV and XLRE
The two portfolios are largely distinct. Weighing the shared positions, 2.4% of the two funds is identical, spread across 3 common holdings. That shared book is a large part of why the returns line up.
Largest positions held only by USMV: MSFT (1.68%), NEM (1.65%), VRTX (1.63%), JNJ (1.58%), APH (1.54%). Only by XLRE: PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%), VMRK (4.96%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 3 common positions shown.
Year-by-year returns
| Year | USMV | XLRE |
|---|---|---|
| 2022 | -9.4% | -26.2% |
| 2023 | +10.3% | +12.4% |
| 2024 | +15.7% | +5.1% |
| 2025 | +7.6% | +2.6% |
| 2026 | +9.1% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USMV and XLRE good diversifiers for each other?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between USMV and XLRE?
As of 2026-08-27, the correlation of weekly returns between USMV and XLRE is 0.68 over 3 years, 0.49 over 1 year and 0.78 over 5 years.
Is XLRE a good diversifier for USMV?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
How much do USMV and XLRE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 2.4% by weight over 3 common positions.
Use this data
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Related comparisons
Hubs: USMV correlations · XLRE correlations
