What Is XLRE? Real Estate Select Sector SPDR Fund
Last updated July 2026
Short answer
XLRE is the Real Estate Select Sector SPDR Fund, a cap-weighted ETF holding the roughly 30 real estate companies in the S&P 500, almost all REITs. It tracks the Real Estate Select Sector Index at a low 0.08% expense ratio, led by names like Welltower, Prologis, Equinix, and American Tower. It excludes mortgage REITs and offers a low-cost, dividend-heavy way to add property exposure versus a broader REIT fund like VNQ.
XLRE is issued by State Street Global Advisors (SPDR) and tracks Real Estate Select Sector Index. It charges a 0.08% expense ratio, holds approximately ~$8 billion in assets under management, yields about ~3.4%, and launched in October 2015.
What is XLRE?
XLRE is the Real Estate Select Sector SPDR Fund, an exchange-traded fund that isolates the real estate segment of the S&P 500. It tracks the Real Estate Select Sector Index and charges a very low 0.08% expense ratio, holding roughly 30 companies that are almost entirely equity REITs.
The fund was created in 2015 when real estate became its own S&P 500 sector, separate from financials. It excludes mortgage REITs and focuses on companies that own and operate income-producing property, giving investors low-cost, dividend-heavy access to the sector through a single ticker.
XLRE holdings
Approximate weights as of mid-2026; refresh quarterly from State Street Global Advisors (SPDR)'s fund page. Each ticker links to its individual stock guide in Walnut.
| Rank | Ticker | Company | % of XLRE | |
|---|---|---|---|---|
| 1 | WELL | Welltower Inc. | ~11.2% | |
| 2 | PLD | Prologis, Inc. | ~9.0% | |
| 3 | EQIX | Equinix, Inc. | ~7.0% | |
| 4 | AMT | American Tower Corporation | ~5.3% | |
| 5 | SPG | Simon Property Group, Inc. | ~4.9% | |
| 6 | DLR | Digital Realty Trust, Inc. | ~4.7% | |
| 7 | O | Realty Income Corporation | ~4.6% | |
| 8 | VTR | Ventas, Inc. | ~4.6% | |
| 9 | PSA | Public Storage | ~4.5% | |
| 10 | CBRE | CBRE Group, Inc. | ~4.3% |
XLRE is cap-weighted, so its largest holdings carry meaningful weight. Top positions typically include Welltower, Prologis, Equinix, American Tower, Simon Property Group, Digital Realty, Realty Income, Ventas, Public Storage, and CBRE Group.
The roster spans a broad set of property types, from healthcare and industrial warehouses to data centers, cell towers, retail malls, storage, and net-lease real estate. That mix means large-cap digital-infrastructure REITs like Equinix and American Tower sit alongside traditional landlords, giving the fund exposure to several distinct real estate trends at once.
XLRE vs VNQ
The most common comparison for XLRE is Vanguard's VNQ. Both target real estate, but XLRE holds only the roughly 30 REITs in the S&P 500, while VNQ follows a much broader index with over 150 holdings that reach into mid and small-cap property companies.
As a result, XLRE is more concentrated in large-cap REITs and carries a lower 0.08% fee, while VNQ offers broader diversification across the REIT market. The choice often comes down to whether an investor prefers XLRE's low cost and large-cap focus or VNQ's wider reach.
Performance and outlook
XLRE's performance is closely tied to interest rates, since REITs rely on debt financing and compete with bonds for income investors. Rising rates have historically pressured the fund, while falling rates and stable property fundamentals tend to support it.
The outlook depends on rent growth, occupancy, and demand across property types, from data centers and warehouses to healthcare and retail. Its high dividend yield is a core part of the return, so XLRE is often used more for income and diversification than for aggressive capital appreciation.
Is XLRE a good fit?
XLRE suits investors who want low-cost, dividend-focused real estate exposure and diversification away from stocks and bonds. Its interest-rate sensitivity and concentration in a handful of large REITs are tradeoffs, and it works best as one sleeve of a broader portfolio rather than a standalone bet.
Walnut is not an investment adviser. This is descriptive information, not a recommendation. Whether XLRE belongs in your portfolio depends on your goals, time horizon, risk tolerance, and existing holdings, so weigh those factors or consult a licensed professional before deciding.
How to buy XLRE
XLRE trades on the NYSE Arca and can be purchased through brokerages such as Robinhood, Fidelity, Charles Schwab, and Public. Many of these support fractional shares, so you can start with a small dollar amount rather than buying a full share.
You can also connect your existing brokerage to Walnut to track XLRE alongside your other positions and build a basket around a real estate or income thesis. Walnut helps you monitor how the holding aligns with your target weights over time while your trades stay at your broker.
The bottom line on XLRE
XLRE is the cheapest large real estate sector ETF, delivering low-cost, dividend-focused exposure to S&P 500 REITs at a 0.08% fee. It fits investors who want a property and income tilt, though it is interest-rate sensitive and narrower than broader REIT funds like VNQ.
More on XLRE
Whether XLRE is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is XLRE a buy?
XLRE yields ~3.4% as of mid-2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see XLRE dividend: yield and schedule.
Build a portfolio around XLRE with Walnut
Use XLRE as your core holding, then let Walnut's AI propose thematic satellites: AI infrastructure, dividend growth, clean energy, whatever you believe in. Connect your broker, build the basket in conversation, track it as one unit.
FAQ
What is XLRE?
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XLRE is the Real Estate Select Sector SPDR Fund, an ETF that holds the roughly 30 real estate companies in the S&P 500, almost all of them REITs. It tracks the Real Estate Select Sector Index on a cap-weighted basis, charges a low 0.08% expense ratio, and excludes mortgage REITs.
Who issues XLRE and what does it track?
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XLRE is issued by State Street Global Advisors under its SPDR brand and tracks the Real Estate Select Sector Index. That index isolates the real estate companies within the S&P 500, covering equity REITs and real estate management and development firms while excluding mortgage REITs.
What does XLRE hold?
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XLRE holds about 30 large real estate companies. Top positions typically include Welltower, Prologis, Equinix, American Tower, Simon Property Group, Digital Realty, Realty Income, and Public Storage. It spans property types from data centers and cell towers to warehouses, healthcare, retail, and storage.
What is the difference between XLRE and VNQ?
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Both target real estate, but XLRE holds only the roughly 30 REITs in the S&P 500, while Vanguard's VNQ follows a much broader index with over 150 holdings, reaching into mid and small-cap REITs. XLRE is more concentrated in large-caps; VNQ is broader. XLRE's 0.08% fee is lower than VNQ's.
What is XLRE's expense ratio?
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XLRE charges an expense ratio of just 0.08%, or about 80 cents a year per 1,000 dollars invested. That is very low for a sector ETF and undercuts many broader REIT funds, reflecting its simple approach of holding the real estate members of the S&P 500.
Does XLRE pay a dividend?
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Yes. XLRE yields roughly 3.4% as of mid-2026 and pays quarterly distributions. REITs are required to pass most of their taxable income to shareholders, so real estate funds like XLRE tend to offer higher yields than the broad market, making it popular for income.
How do I buy XLRE?
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XLRE trades on the NYSE Arca and can be bought through brokerages like Robinhood, Fidelity, Charles Schwab, and Public, most of which support fractional shares. You can also connect your broker to Walnut to track XLRE alongside your other holdings and build a basket around a real estate or income thesis.
How big is XLRE?
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XLRE has roughly 8 billion dollars in assets under management as of mid-2026, making it one of the largest real estate sector ETFs. Its scale and liquidity make it a common vehicle for investors adding property exposure to a diversified portfolio.
Is XLRE a good investment?
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Whether XLRE fits depends on your goals, risk tolerance, and portfolio. It offers dividend-heavy real estate exposure but is sensitive to interest rates and concentrated in a few large REITs. Walnut is not an investment adviser, so treat this as descriptive information and consider your own situation before investing.
When was XLRE created?
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XLRE launched in October 2015, when real estate was carved out of the financials sector into its own S&P 500 sector. It was created to give investors direct, low-cost access to the newly independent real estate sector through the Select Sector SPDR family.
Is XLRE sensitive to interest rates?
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Yes. REITs often rely on debt to finance properties and compete with bonds for income-seeking investors, so XLRE tends to be sensitive to interest-rate moves. Rising rates can pressure REIT valuations, while falling rates often support them, making rate expectations a key driver of the fund.
Does XLRE include mortgage REITs?
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No. XLRE holds equity REITs and real estate management and development companies but excludes mortgage REITs, which own real estate debt rather than physical property. That keeps the fund focused on companies that own and operate income-producing real estate.
What types of property does XLRE cover?
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XLRE spans a wide range of property types through its holdings, including data centers, cell towers, industrial warehouses, healthcare facilities, retail malls, storage, and net-lease properties. That diversity means the fund reflects trends across many corners of commercial real estate at once.
Why does XLRE hold data center and tower REITs?
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Companies like Equinix, Digital Realty, and American Tower are classified as REITs because they own and lease physical infrastructure such as data centers and communication towers. Their large weights give XLRE meaningful exposure to digital-infrastructure demand alongside traditional property types.
How do I compare XLRE to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. XLRE's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to mid-2026; verify current figures against State Street Global Advisors (SPDR)'s fund page or your broker before investing.