ETF Versus

IYR vs XLRE

iShares U.S. Real Estate ETF vs State Street Real Estate Select Sector SPDR ETF

Last updated: 2026-04-10

IYR iShares

iShares U.S. Real Estate ETF (IYR) is an exchange-traded fund issued by iShares that provides exposure to U.S. real estate investment trusts (REITs) and real estate companies. It charges an above-average expense ratio of 0.38%. The fund offers a moderate dividend yield of 2.27%. Launched in 2000, the fund has a 26-year track record.

AUM: $4.2B ER: 0.38% Yield: 2.27% Since: Jun 12, 2000
XLRE SPDR

State Street Real Estate Select Sector SPDR ETF (XLRE) is an exchange-traded fund issued by SPDR that provides exposure to us sector - real estate securities. It charges a low expense ratio of 0.08%. The fund offers an attractive dividend yield of 3.27%. Launched in 2015, the fund has a 11-year track record.

AUM: $7.5B ER: 0.08% Yield: 3.27% Since: Oct 7, 2015

Quick Verdict

XLRE is significantly cheaper at 0.08% vs 0.38% expense ratio, saving you approximately $588 per $10,000 invested over 10 years. IYR has edged ahead over the past year (13.4% vs 11.5%). Income investors may prefer XLRE for its higher yield (3.3% vs 2.3%).

Key Metrics

Metric IYR XLRE
Expense Ratio 0.38% 0.08%
Dividend Yield 2.3% 3.3%
Fund Family iShares SPDR
Category US Real Estate US Sector - Real Estate

Performance Chart

Indexed to 100 at start (5-year comparison)

75 86 97 108 119 130 2021-04 2022-07 2023-10 2025-01 2026-04
IYR +4.8%
XLRE +5.4%

Performance Comparison

Period IYR XLRE Difference
1 Month +1.01% +0.90% +0.11%
3 Months +4.33% +5.34% -1.01%
6 Months +5.02% +4.60% +0.42%
YTD +5.33% +5.97% -0.64%
1 Year +13.37% +11.49% +1.88%
3 Years +16.36% +14.20% +2.16%
5 Years +4.79% +5.45% -0.66%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period IYR Fees XLRE Fees You Save
$10,000 10 years $748 $159 $588
$10,000 20 years $3,173 $686 $2,487
$10,000 30 years $10,097 $2,212 $7,885
$50,000 10 years $3,739 $797 $2,942
$50,000 30 years $50,486 $11,061 $39,424
$100,000 30 years $100,972 $22,123 $78,849

Risk Metrics

Based on 5 years of daily returns

Metric IYR XLRE
Annualized Volatility 18.8% 19.1%
Max Drawdown -36.9% -37.9%
Sharpe Ratio -0.10 -0.08

Dividend Comparison

Metric IYR XLRE
Annual Dividend (per share) $2.25 $1.40
Dividend Yield 2.27% 3.27%
Distribution Frequency Quarterly Quarterly

Top Holdings

10 of top 10 holdings overlap (100% overlap in top holdings)

IYR Top Holdings

NameWeight
Welltower Inc.WELL9.94%
Prologis, Inc.PLD9.20%
Equinix, Inc.EQIX4.69%
Digital Realty Trust, Inc.DLR4.60%
Simon Property Group, Inc.SPG4.59%
Realty Income CorporationO4.35%
American Tower CorporationAMT4.32%
Public StoragePSA3.51%
CBRE Group, Inc.CBRE3.17%
Ventas, Inc.VTR3.06%

XLRE Top Holdings

NameWeight
Welltower Inc.WELL10.17%
Prologis, Inc.PLD9.10%
Equinix, Inc.EQIX7.12%
American Tower CorporationAMT5.87%
Digital Realty Trust, Inc.DLR4.60%
Simon Property Group, Inc.SPG4.58%
CBRE Group, Inc.CBRE4.53%
Ventas, Inc.VTR4.36%
Realty Income CorporationO4.35%
Public StoragePSA4.33%

Which One Should You Choose?

Choose XLRE if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose XLRE if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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