XLRE vs VNQ Stock Comparison: AI Score, Valuation, Performance and Upside
XLRE and VNQ are both U.S. REIT ETFs but with different universes: XLRE is limited to the 30 largest S&P 500 REITs, while VNQ covers 160+ REITs across all market caps. XLRE offers lower cost and a concentrated large-cap REIT exposure for sector rotation strategies; VNQ offers broader, more comprehensive real estate sector coverage including mid-cap names.
XLRE vs VNQ is a large-cap REIT selection (XLRE) versus broad REIT market coverage (VNQ) choice — investors using sector rotation frameworks often prefer XLRE's integration with the SPDR Select Sector family, while passive real estate allocators prefer VNQ's broader coverage.
VNQ holds the edge across 3 of 5 key metrics in this comparison. VNQ has delivered stronger 1-year price return (+10.54% vs +8.47% for XLRE).
- →prefer a concentrated large-cap REIT ETF that integrates with the State Street Select Sector SPDR framework for sector rotation
- →value S&P 500 membership quality filter ensuring the largest and most financially stable REITs
- →want real estate sector exposure at lower cost (0.09%) with a focus on blue-chip REITs like Prologis and Equinix
- →are comfortable with only 30 holdings and less diversification than broader REIT ETFs like VNQ
- →prefer broader U.S. REIT sector coverage including mid-cap and smaller REITs beyond S&P 500 members
- →value the largest REIT ETF AUM ($35B+) for superior secondary market liquidity
- →want comprehensive real estate sector diversification across all subsectors and REIT sizes
- →are comfortable paying 0.13% expense ratio for meaningfully broader coverage than XLRE's 30-stock concentrated portfolio
| Metric | XLRE | VNQ |
|---|---|---|
| ETF score | 40.0 | 52.0 |
| Latest close | $43.86 | $95.56 |
| 1M return | -0.18% | +0.29% |
| 6M return | +9.59% | +9.02% |
| 1Y return | +8.47% | +10.54% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | XLRE | VNQ |
|---|---|---|
| 1Y ago | $11.23K (+12.3%) started 2025-06-18 | $11.5K (+15.0%) started 2025-06-18 |
| 5Y ago | $13.94K (+39.4%) started 2021-06-18 | $13.99K (+39.9%) started 2021-06-18 |
| 10Y ago | $28.14K (+181.4%) started 2016-06-20 | $26.84K (+168.4%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | XLRE | VNQ |
|---|---|---|
| Expense ratio | 0.08% | 0.13% |
| Total assets (AUM) | $7.95B | $69.8B |
| Dividend yield | 3.18% | 3.64% |
| Trailing P/E | 32.31 | 30.54 |
| Beta | 0.99 | 1.00 |
| 52-week change | 8.47% | 10.54% |
| Metric | XLRE | VNQ |
|---|---|---|
| 1Y return | +8.47% | +10.54% |
| 6M return | +9.59% | +9.02% |
| 1M return | -0.18% | +0.29% |
| 1Y Sharpe ratio | 0.33 | 0.47 |
| Beta | 0.99 | 1.00 |
| Dividend yield | 3.18% | 3.64% |
| 5Y CAGR | +3.13% | +2.58% |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | XLRE | VNQ |
|---|---|---|---|
| 1Y | Growth | +8.47% | +10.54% |
| CAGR | +8.48% | +10.54% | |
| Sharpe ratio | 0.33 | 0.47 | |
| Max drawdown | 8.33% | 8.34% | |
| Max daily drop | 3.17% | 3.10% | |
| Max wkly drop | 5.05% | 4.81% | |
| 5Y | Growth | +16.68% | +13.58% |
| CAGR | +3.13% | +2.58% | |
| Sharpe ratio | 0.02 | -0.01 | |
| Max drawdown | 34.11% | 34.48% | |
| Max daily drop | 4.82% | 5.00% | |
| Max wkly drop | 12.01% | 12.07% | |
| 10Y | Growth | +90.00% | +65.68% |
| CAGR | +6.63% | +5.18% | |
| Sharpe ratio | 0.20 | 0.13 | |
| Max drawdown | 38.82% | 42.40% | |
| Max daily drop | 16.00% | 17.73% | |
| Max wkly drop | 23.08% | 24.91% |
| Category | XLRE | VNQ |
|---|---|---|
| Fund name | State Street Real Estate Select Sector SPDR ETF | Vanguard Real Estate Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratio | 0.08% | 0.13% |
| Total assets (AUM) | $7.95B | $69.8B |
| Dividend yield | 3.18% | 3.64% |
- →0.09% expense ratio provides very low cost access to large-cap REIT sector exposure
- →S&P 500 filter ensures holdings are among the most financially sound and liquid REITs in the market
- →Commonly used in sector rotation strategies alongside other Select Sector SPDRs (XLF, XLK, XLE, etc.)
- →160+ holdings across all REIT subsectors and market caps provides much broader real estate sector coverage than XLRE
- →Includes mid-cap and smaller REITs that can outperform in REIT bull markets and recovery cycles
- →VNQ's larger AUM ($35B+) provides excellent secondary market liquidity relative to XLRE
- →Only 30 holdings — far fewer than VNQ's 160+ — creates more concentration in a small number of mega-REITs
- →S&P 500 filter excludes many mid-cap and smaller REITs that can drive significant returns in REIT bull markets
- →Heavy weighting toward industrial and data center REITs (Prologis, Equinix, American Tower) gives XLRE different subsector tilts than VNQ
- →0.13% expense ratio is 4 basis points more than XLRE's 0.09%
- →Broader inclusion of smaller REITs means more exposure to financially weaker companies that may cut dividends during stress periods
- →Real estate as a sector is sensitive to interest rate changes regardless of which ETF is chosen
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