XLRE VS IYR
4 min read
By Ron Koren, ETF Insider

XLRE VS IYR

Exchange-Traded Funds (ETFs) have become a cornerstone of modern finance, providing investors with diversified exposure to various sectors and asset classes. In this article, we will conduct an in-depth comparison of two prominent Real Estate ETFs: XLRE (Real Estate Select Sector SPDR Fund) and IYR (iShares U.S. Real Estate ETF). We'll explore their ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking methods, and exposure.

XLRE VS IYR: Overview

XLRE and IYR are two ETFs that focus on the real estate sector, but they offer different investment strategies. XLRE, managed by State Street Global Advisors, tracks the performance of companies in the S&P 500 Real Estate Sector. In contrast, IYR, managed by BlackRock's iShares, provides exposure to the broader U.S. real estate market. These differing investment approaches result in distinct risk profiles and returns, which we will explore further.

XLRE VS IYR: Sectors and Top Holdings

When considering XLRE, investors should be aware that it primarily invests in real estate investment trusts (REITs) that are part of the S&P 500 Real Estate Sector. Key holdings include well-known REITs like American Tower Corporation, Prologis, and Simon Property Group. On the other hand, IYR offers broader exposure by investing in a diverse range of U.S. real estate companies, including REITs and real estate management firms. Understanding the sectors and top holdings of these ETFs can help investors align their portfolios with their specific real estate investment objectives.

XLRE overlap XLRE VS IYRXLRE overlap XLRE VS IYR

XLRE VS IYR: Capitalization and Strategy

Capitalization and strategy play pivotal roles in an ETF's performance and suitability for investors. XLRE boasts a significant asset under management (AUM), indicating its popularity among investors seeking targeted exposure to the S&P 500 Real Estate Sector. IYR, with its broader approach, aims to capture the overall performance of the U.S. real estate market. These varying capitalization levels and strategies result in different risk-return profiles, requiring investors to carefully assess their investment goals and risk tolerance.

XLRE VS IYR: Tracking Methods and Exposure

Understanding how these ETFs track their respective sectors and provide exposure is crucial for investors. XLRE closely tracks the S&P 500 Real Estate Sector Index, reflecting the performance of REITs within the sector. In contrast, IYR tracks the Dow Jones U.S. Real Estate Index, which encompasses a broader spectrum of real estate-related companies. These tracking methods translate into different risk and return characteristics, making it imperative for investors to choose the ETF that aligns with their investment strategy.

Conclusion

XLRE and IYR are distinct Real Estate ETFs, each catering to specific investment preferences. However, for investors seeking in-depth insights into holdings, correlations, overlaps, and more, ETF Insider stands as the ultimate tool. With its user-friendly app, it offers comprehensive information on these financial instruments and many others.

Disclaimer: This article does not provide any investment advisory services.

XLRE ETF issuer
XLRE ETF official page

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