ETF Evaluator: State Street Real Estate Sel SectSPDRETF (XLRE) Follow This ETF

State Street Real Estate Sel SectSPDRETF Overview

State Street Real Estate Sel SectSPDRETF (XLRE) is a passively managed Sector Equity Real Estate exchange-traded fund (ETF). State Street Investment Management launched the ETF in 2015.

The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Real Estate Select Sector Index (the "index"). Under normal market conditions, the fund generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes companies that have been identified as Real Estate companies by the Global Industry Classification Standard (GICS®). The fund is non-diversified.

About State Street Real Estate Sel SectSPDRETF (XLRE)

There are 3 members of the management team with an average tenure of 6.88 years: Emiliano Rabinovich (2026), Amy Cheng (2017) and Karl Schneider (2015). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and S&P Real Estate Select Sector TR USD index with a weighting of 100%. State Street Real Estate Sel SectSPDRETF has 34 securities in its portfolio. The top 10 holdings constitute 59.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

State Street Real Estate Sel SectSPDRETF is part of the Equity global asset class and is within the Sector Equity ETF group. State Street Real Estate Sel SectSPDRETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.8% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). State Street Real Estate Sel SectSPDRETF has 0.2% of the portfolio in cash.

Assets Under Management

The fund has $8 billion in total assets, which is above the $1 billion average for the Real Estate category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

XLRE Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The State Street Real Estate Sel SectSPDRETF expense ratio is low compared to funds in the Real Estate category. State Street Real Estate Sel SectSPDRETF has an expense ratio of 0.08%, which is 84% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. State Street Real Estate Sel SectSPDRETF has a portfolio turnover rate of 8%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 69% for the Real Estate category.

Recently, in the month of June 2026, State Street Real Estate Sel SectSPDRETF returned 0.9%, which earned it a grade of D, as the Real Estate category had an average return of 2.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

State Street Real Estate Sel SectSPDRETF has a trailing yield of 3.19%, which is below the 4.16% category average. The fund normally distributes its income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

State Street Real Estate Sel SectSPDRETF Grades

Year to date, the ETF has returned 10.8%, 2.6 percentage points worse than the category, which translates into a grade of D. The fund has returned 9.9% over the past year (grade of F), 8.9% over the past three years (grade of C) and 3.2% per year over the past five years (grade of C) and 6.3% per year over the past 10 years (grade of A).

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