XLI vs XLRE: Correlation & Overlap
How closely do Industrial Select Sector SPDR Fund (XLI) and Real Estate Select Sector SPDR Fund (XLRE) trade together? Their weekly returns over three years give a correlation of 0.61, which is strong. By holdings, the two funds overlap 0% by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are XLI and XLRE?
Across a 3-year window, the weekly returns of XLI and XLRE correlate at 0.61, strong. Lately the two have drifted apart, with the 1-year correlation at 0.49 versus 0.61 over 3 years. Stretching to 5 years gives 0.69, with an annualized covariance of 159.3 %².
Among the 204 assets we track against XLI, XLRE ranks #105 by 3-year correlation. On 12-month performance XLI holds a 8.8-point edge, +18.3% against +9.5%. On a rolling one-year basis the correlation drifted between 0.48 and 0.82, a moderate band.
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.
XLI vs XLRE: side by side
| XLI (Industrial Select Sector SPDR Fund) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +18.3% | +9.5% |
| 5-year return | +84.0% | +11.4% |
| Volatility (ann.) | 15.7% | 16.7% |
| Beta vs S&P 500 | 0.89 | 0.57 |
| Max drawdown (3Y) | -18.5% | -16.6% |
| Dividend yield | 1.15% | 3.12% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $32.9B | $8.6B |
| Sector / category | Sector ETF | Sector ETF |
XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% 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 XLI 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 XLI: CAT (6.68%), GE (6.52%), RTX (5.04%), GEV (4.52%), UNP (3.25%). 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 | XLI | XLRE |
|---|---|---|
| 2022 | -5.6% | -26.2% |
| 2023 | +18.1% | +12.4% |
| 2024 | +17.3% | +5.1% |
| 2025 | +19.3% | +2.6% |
| 2026 | +15.9% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLI and XLRE good diversifiers for each other?
Only partially. A correlation of 0.61 means XLI and XLRE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between XLI and XLRE?
Using weekly returns as of 2026-08-27: 0.61 over 3 years, with 0.49 over the last year and 0.69 over 5 years.
Is XLRE a good diversifier for XLI?
Only partially. A correlation of 0.61 means XLI and XLRE share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do XLI and XLRE overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 0% by weight over 0 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xli-vs-xlre.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/xli-vs-xlre/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: XLI correlations · XLRE correlations
