XLE vs XLRE: Correlation & Overlap
Measured on weekly returns over the past three years, Energy Select Sector SPDR Fund (XLE) and Real Estate Select Sector SPDR Fund (XLRE) carry a correlation of 0.27, a weak link. The two funds also share 0% of their portfolios by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLE and XLRE?
On 3 years of weekly data the XLE/XLRE correlation comes out at 0.27, weak. The past 12 months show a weaker link (0.03) than the 3-year average (0.27). The 5-year figure is 0.25, and annualized covariance runs at 102.3 %².
Within XLE's tracked universe of 121 assets, XLRE comes in at #82 by 3-year correlation. The last year tells two different stories: XLE led by 34.5 percentage points, +44.0% for XLE against +9.5% for XLRE. This link changes with the market regime, having swung between -0.06 and 0.60 on a rolling one-year basis.
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.
XLE vs XLRE: side by side
| XLE (Energy Select Sector SPDR Fund) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +44.0% | +9.5% |
| 5-year return | +206.7% | +11.4% |
| Volatility (ann.) | 23.1% | 16.7% |
| Beta vs S&P 500 | 0.27 | 0.57 |
| Max drawdown (3Y) | -20.1% | -16.6% |
| Dividend yield | 2.55% | 3.12% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $39.2B | $8.6B |
| Sector / category | Sector ETF | Sector ETF |
XLE, State Street Investment Management's Equity Energy fund, carries $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% 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 XLE and XLRE
The two portfolios are largely distinct, with 0 holdings in common adding up to 0% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
Largest positions held only by XLE: XOM (20.03%), CVX (14.84%), COP (6.30%), MPC (5.40%), PSX (5.37%). 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 2026-08-26.
Year-by-year returns
| Year | XLE | XLRE |
|---|---|---|
| 2022 | +64.3% | -26.2% |
| 2023 | -0.6% | +12.4% |
| 2024 | +5.6% | +5.1% |
| 2025 | +7.9% | +2.6% |
| 2026 | +41.2% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLE and XLRE good diversifiers for each other?
A fair diversifier. At 0.27, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between XLE and XLRE?
As of 2026-08-27, the correlation of weekly returns between XLE and XLRE is 0.27 over 3 years, 0.03 over 1 year and 0.25 over 5 years.
Is XLRE a good diversifier for XLE?
A fair diversifier. At 0.27, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do XLE and XLRE overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
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Related comparisons
Hubs: XLE correlations · XLRE correlations
