At a glance
XLRE charges 0.08% a year, below the 0.22% average of the 8 funds most like it (the 2nd cheapest of 9). It has $8.10B in assets, the 2nd largest of that group; it paid 3.39% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +2.8% with distributions reinvested (S&P 500: +11.5%), 7th of those 9 funds; over three years it returned +13.3% a year. At its worst it fell 32.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 42 months after the low. Its ten largest positions make up 59.1% of the fund, out of 31 in all.
The short version
The Real Estate Select Sector SPDR Fund (XLRE) is a State Street index fund that holds the 31 real estate companies in the S&P 500. Most are real estate investment trusts (REITs), which own property and pay out most of their income. The largest are Welltower, Prologis and Equinix. Its 0.08% annual expense ratio compares with a 0.22% average for similar funds. It pays dividends every quarter, and its trailing yield was 3.39% as of October 27, 2026.
Price history
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XLRE +2.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| XLRE official prospectus, to Dec 31, 2025 | — | +2.59% | — | +5.48% | +6.26% | — |
| XLRE price data to Oct 27, 2026 | +7.7% | +2.8% | +13.3% | +1.1% | — | +6.4% |
- Over the year to Oct 27, 2026, XLRE returned +2.8%, 7th of 9 among similar funds.
- Its 5-year annualized return was +1.1%.
- Its worst full calendar year was 2022 (-26.3%); its best was 2021 (+46.1%).
- The deepest fall in its price history was 34.1% (Dec 31, 2021 to Oct 25, 2023), recovered by Jun 11, 2026.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.7% | — |
| 2025 | +2.6% | +2.59% |
| 2024 | +5.1% | +5.13% |
| 2023 | +12.4% | +12.38% |
| 2022 | -26.3% | -26.20% |
| 2021 | +46.1% | +45.97% |
| 2020 | — | -2.27% |
| 2019 | — | +28.84% |
| 2018 | — | -2.27% |
| 2017 | — | +10.70% |
| 2016 | — | +3.19% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 32.3% over that stretch · deepest drop along the way 32.3%, back to its old high 42.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.0000 | |
| 2025 | $1.4000 | +0.7% |
| 2024 | $1.3900 | +4.5% |
| 2023 | $1.3300 | -2.2% |
| 2022 | $1.3600 | 0.0% |
| 2021 | $1.3600 |
What's inside
As of Jun 30, 2026, the fund held 31 securities; the ten largest made up 59.08% of assets.
| Holding | Weight | |
|---|---|---|
| Welltower Inc | 11.01% | |
| Prologis Inc | 8.68% | |
| Equinix Inc | 7.06% | |
| American Tower Corp | 5.23% | |
| Simon Property Group Inc | 4.98% | |
| Realty Income Corp | 4.55% | |
| Digital Realty Trust Inc | 4.53% | |
| Public Storage | 4.48% | |
| Ventas Inc | 4.47% | |
| CBRE Group Inc | 4.08% | |
| Iron Mountain Inc | 3.89% | |
| Crown Castle Inc | 3.42% | |
| Extra Space Storage Inc | 3.18% | |
| VICI Properties Inc | 3.01% | |
| AvalonBay Communities Inc | 2.71% |
By country
United States 99.45%By asset type
Stocks 99.45%By sector
Sectors of the companies held, for the 67.4% of the fund in companies that have a stock page here; other holdings and cash aren't classified. Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $232.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +8.73%, -0.94%, +0.94%.
How it works
XLRE tracks the Real Estate Select Sector Index, which S&P Dow Jones Indices compiles. A company has to be in the S&P 500 to be in the index. It also has to be classed as real estate under GICS (the Global Industry Classification Standard, a system that sorts companies into sectors). That covers REITs that own industrial, health care, office, residential, retail, hotel, specialized and diversified property, plus real estate management and development companies. As of November 30, 2025, the index held 31 stocks.
The index uses a "modified market capitalization" method. Larger companies get larger weights, but S&P can trim very large single positions so the fund meets federal tax-code diversification rules for funds. Even so, a few names dominate. As of June 30, 2026, Welltower made up 11.0% of the fund, Prologis 8.7% and Equinix 7.1%. The top 10 holdings made up 59% of assets. The prospectus calls the fund "non-diversified."
State Street's adviser, SSGA Funds Management, uses replication. That means it buys substantially all the stocks in the index in roughly the same proportions, and at least 95% of assets go into index securities. The fund can hold small amounts of cash or money market funds. It doesn't try to beat the index. Portfolio turnover was 8%, and the fund uses no leverage or options strategies.
What it really costs
- XLRE charges 0.08% a year, versus an average of 0.22% for the similar funds below (2nd of 9, cheapest first).
- Of that, 0.03% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $8 in the first year and $103 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| XLRE | $8 | $26 | $45 | $103 |
In a retirement portfolio
It is a concentrated, single-sector fund of 31 stocks that has had deep, slow-to-heal drops, so it fits best as a smaller add-on to a broader portfolio.
Every stock XLRE holds is also in the S&P 500, so owning it adds weight to real estate rather than new companies. It pays dividends quarterly, with a 3.39% trailing 12-month yield as of October 27, 2026. Those payments can provide cash without selling shares, but they aren't guaranteed. Costs are low: in the SEC's standard $10,000 example, the fee totals about $103 over 10 years.
The fund launched in 2015, so it has no record from 2008. Its worst quarter was a 19.29% drop in early 2020, and its worst calendar year was 2022, down 26.2%. Its deepest decline was 34.1%, from December 31, 2021 to October 25, 2023. It didn't regain that earlier high until June 11, 2026. Anyone who had to sell during that stretch would have sold well below the old peak. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a low-cost real estate holding: 0.08% a year, against a 0.22% average among similar funds.
- Those who prefer large, S&P 500-listed REITs and property firms such as Welltower, Prologis and Equinix over smaller real estate companies.
- Income-minded investors who are comfortable with quarterly dividends. The trailing yield was 3.39% as of October 27, 2026.
Look elsewhere if
- Those wanting broader diversification: with 31 stocks, about 59% in the top 10 and 11% in Welltower, a few companies can drive results.
- Anyone who would struggle through a steep, slow recovery: it fell 34.1% from late 2021 to late 2023 and recovered only in June 2026.
- Investors holding it in a taxable account who want lower-taxed qualified dividends: REIT payouts are often taxed as ordinary income.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| XLRE this fund | — | 0.08% | $8.10B | +2.8% | +13.3% |
| ICF iShares Cohen & Steers REIT ETF | 85% | 0.33% | $2.10B | +7.6% | +14.2% |
| IYR iShares U.S. Real Estate ETF | 80% | 0.39% | $4.67B | +1.9% | +12.7% |
| SCHH Schwab US REIT ETF | 73% | 0.07% | $11.20B | +7.1% | +14.1% |
| FREL Fidelity MSCI Real Estate Index ETF | 73% | 0.084% | $1.49B | +3.2% | +13.3% |
| RSPR Invesco S&P 500 Equal Weight Real Estate ETF | 72% | 0.4% | $100.3M | +0.4% | +11.8% |
| DFAR Dimensional US Real Estate ETF | 72% | 0.19% | $1.78B | +7.6% | +14.0% |
| USRT iShares Core U.S. REIT ETF | 69% | 0.08% | $4.66B | +8.5% | +15.9% |
Questions investors ask
Is XLRE good for retirement income?
It can supply some income, but it's a single-sector fund with real swings. As of October 27, 2026, its trailing 12-month yield was 3.39%, or about $1.44 per share, paid quarterly. REIT dividends can rise or fall. The share price has also dropped sharply at times: the fund lost 26.2% in 2022 and needed until June 2026 to recover from its deepest decline. Some investors keep it as a smaller part of a broader mix.
Does XLRE pay monthly dividends?
No. XLRE pays dividends quarterly, not monthly. Over the 12 months to October 27, 2026, it paid about $1.44 per share, a trailing yield of 3.39%. The payments come from the dividends of the REITs and real estate companies it holds, such as Welltower, Prologis and Equinix, so the amount changes from one quarter to the next.
What is the expense ratio of XLRE?
XLRE's expense ratio is 0.08% a year, according to its prospectus filed January 28, 2026. That includes a 0.03% management fee. In the SEC's standard example, a $10,000 investment costs about $8 in the first year and $103 over 10 years, assuming a 5% annual return. It ranks second-cheapest of nine similar funds, whose average is 0.22%. Schwab US REIT ETF (SCHH) charges 0.07%, and iShares Core U.S. REIT ETF (USRT) charges 0.08%.
What's the difference between XLRE and ICF?
The main difference is cost. Holdings are similar: iShares Cohen & Steers REIT ETF (ICF) overlaps about 85% with XLRE but charges 0.33% a year against XLRE's 0.08%. ICF has returned more lately. As of October 27, 2026, ICF returned 7.6% over one year versus 2.8% for XLRE. Over three years, ICF averaged 14.2% a year versus 13.3%. XLRE is larger, with $8.1 billion in net assets as of June 30, 2026, compared with $2.1 billion for ICF.
How has XLRE performed over 10 years?
XLRE returned an average of 6.26% a year over the 10 years through December 31, 2025, according to its prospectus. Over five years it averaged 5.48% a year, and over one year it returned 2.59%. Single years varied widely. The fund rose 45.97% in 2021 and fell 26.2% in 2022. Its strongest quarter was a gain of 18.79% at the end of 2023, and its worst was a drop of 19.29% in early 2020.