XLRE vs XLY: Correlation & Overlap
Real Estate Select Sector SPDR Fund (XLRE) and Consumer Discretionary Select Sector SPDR Fund (XLY) show a moderate relationship: their 3-year correlation of weekly returns is 0.44. 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 XLRE and XLY?
On 3 years of weekly data the XLRE/XLY correlation comes out at 0.44, moderate. Lately the two have drifted apart, with the 1-year correlation at 0.19 versus 0.44 over 3 years. The 5-year figure is 0.60, and annualized covariance runs at 143.5 %².
Within XLRE's tracked universe of 116 assets, XLY comes in at #87 by 3-year correlation. The trailing year gives XLRE the advantage: +9.5% versus -0.1%, a 9.6-point spread. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.19 to 0.82.
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.
XLRE vs XLY: side by side
| XLRE (Real Estate Select Sector SPDR Fund) | XLY (Consumer Discretionary Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | +9.5% | -0.1% |
| 5-year return | +11.4% | +31.8% |
| Volatility (ann.) | 16.7% | 19.7% |
| Beta vs S&P 500 | 0.57 | 1.15 |
| Max drawdown (3Y) | -16.6% | -26.0% |
| Dividend yield | 3.12% | 0.78% |
| Expense ratio | 0.08% | 0.08% |
| Assets under management | $8.6B | $22.5B |
| Sector / category | Sector ETF | Sector ETF |
XLRE, State Street Investment Management's Real Estate fund, carries $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield. XLY is a Consumer Cyclical fund from State Street Investment Management: $22.5B under management, 47 holdings, a 0.08% expense ratio, a 0.78% trailing dividend yield.
Portfolio overlap between XLRE and XLY
The two portfolios are largely distinct: 0% of the funds' weight sits in the same underlying holdings (0 common positions). Correlation tells you they move together; overlap tells you why.
Largest positions held only by XLRE: WELL (11.43%), PLD (9.06%), EQIX (7.14%), AMT (5.49%), DLR (5.01%). Only by XLY: AMZN (24.32%), TSLA (16.18%), HD (5.54%), MCD (4.11%), BKNG (4.04%).
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 | XLRE | XLY |
|---|---|---|
| 2022 | -26.2% | -36.3% |
| 2023 | +12.4% | +39.6% |
| 2024 | +5.1% | +26.5% |
| 2025 | +2.6% | +7.4% |
| 2026 | +12.4% | -2.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are XLRE and XLY good diversifiers for each other?
A fair diversifier. At 0.44, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
FAQ
What is the correlation between XLRE and XLY?
Using weekly returns as of 2026-08-27: 0.44 over 3 years, with 0.19 over the last year and 0.60 over 5 years.
Is XLY a good diversifier for XLRE?
A fair diversifier. At 0.44, enough of each asset's movement is its own that the pair has smoothed outcomes historically.
How much do XLRE and XLY overlap?
0% by weight, across 0 common holdings, based on issuer-disclosed portfolios as of 2026-08-26.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/xlre-vs-xly.json
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Related comparisons
Hubs: XLRE correlations · XLY correlations
