VWO vs XLRE: Correlation & Overlap
Measured on weekly returns over the past three years, Vanguard FTSE Emerging Markets ETF (VWO) and Real Estate Select Sector SPDR Fund (XLRE) carry a correlation of 0.41, a moderate link. By holdings, the two funds overlap 0.0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VWO and XLRE?
Over the past 3 years, VWO and XLRE moved with a correlation of 0.41, which is moderate. Recent behaviour matches the longer record: 0.33 over 1 year against 0.41 over 3. Over 5 years the correlation is 0.43, and the annualized covariance of weekly returns is 104.1 %².
By 3-year correlation, XLRE places #59 of the 73 assets tracked against VWO. Over the last 12 months VWO came out ahead by 12.1 percentage points (+21.6% against +9.5%). The rolling one-year correlation moved between 0.26 and 0.66 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.
VWO vs XLRE: side by side
| VWO (Vanguard FTSE Emerging Markets ETF) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +21.6% | +9.5% |
| 5-year return | +38.2% | +11.4% |
| Volatility (ann.) | 15.2% | 16.7% |
| Beta vs S&P 500 | 0.75 | 0.57 |
| Max drawdown (3Y) | -17.4% | -16.6% |
| Dividend yield | 2.36% | 3.12% |
| Expense ratio | 0.06% | 0.08% |
| Assets under management | $162.0B | $8.6B |
| Sector / category | ETF · International | Sector ETF |
VWO, Vanguard's Diversified Emerging Mkts fund, carries $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% 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 VWO and XLRE
The two portfolios are largely distinct: 0.0% of the funds' weight sits in the same underlying holdings (1 common positions). Correlation tells you they move together; overlap tells you why.
| Common holding | Weight in VWO | Weight in XLRE |
|---|---|---|
| SPG | 0.00% | 4.72% |
Largest positions held only by VWO: 2330 (18.65%), 700 (3.97%), 9988 (2.90%), 2454 (1.62%), 939 (1.07%). 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 2026-07-31. Top 1 common positions shown.
Year-by-year returns
| Year | VWO | XLRE |
|---|---|---|
| 2022 | -18.0% | -26.2% |
| 2023 | +9.3% | +12.4% |
| 2024 | +10.6% | +5.1% |
| 2025 | +25.6% | +2.6% |
| 2026 | +13.6% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VWO and XLRE good diversifiers for each other?
Reasonably. At 0.41, VWO and XLRE keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
FAQ
What is the correlation between VWO and XLRE?
The VWO/XLRE correlation stands at 0.41 on a 3-year window (1 year: 0.33, 5 years: 0.43), computed from weekly returns as of 2026-08-27.
Is XLRE a good diversifier for VWO?
Reasonably. At 0.41, VWO and XLRE keep a meaningful degree of independence, and combining them has historically reduced portfolio volatility.
How much do VWO and XLRE overlap?
The two funds share 1 holdings amounting to 0.0% of weight, per issuer portfolio files dated 2026-07-31.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vwo-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/vwo-vs-xlre/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VWO correlations · XLRE correlations
