Real Estate Select Sector SPDR Fund (XLRE): Complete Beginner's Guide
Last updated: March 2026 • State Street • Real Estate
Expense Ratio
0.09%
AUM
$6.0B
Dividend Yield
3.40%
Inception
2015
Beginner Score
8/10
What is Real Estate Select Sector SPDR Fund?
XLRE tracks the Real Estate Select Sector Index, giving investors exposure to U.S. real estate investment trusts (REITs) and real estate companies within the S&P 500. It offers a straightforward way to add property-related investments to your portfolio without buying physical real estate. The fund focuses on large-cap REITs spanning data centers, cell towers, and traditional property sectors.
XLRE is managed by State Street and has been available since 2015. With $6.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.09%, which means for every $10,000 you invest, you pay approximately $9 per year in management fees.
XLRE at a Glance — Key Metrics
| Expense Ratio | 0.09% |
| Total Holdings | 31 |
| P/E Ratio | 36.5 |
| Beta | 0.85 |
| Dividend Yield | 3.40% |
| AUM | $6.0B |
| Inception Year | 2015 |
| Issuer | State Street |
Top 10 Holdings in XLRE
XLRE holds 31 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Prologis | PLD | 10.50% |
| 2 | American Tower | AMT | 9.50% |
| 3 | Equinix | EQIX | 8.50% |
| 4 | Crown Castle | CCI | 6.50% |
| 5 | Public Storage | PSA | 6.00% |
| 6 | Simon Property Group | SPG | 5.80% |
| 7 | Realty Income | O | 5.50% |
| 8 | Digital Realty Trust | DLR | 4.80% |
| 9 | Welltower | WELL | 4.50% |
| 10 | VICI Properties | VICI | 4.20% |
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XLRE Performance History
Here's how XLRE has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.50%
1 Year
8.00%
3 Year
3.50%
5 Year
5.50%
10 Year
6.50%
Beginner Suitability Score: 8/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
XLRE scores 8/10 because it has very low fees, shows lower-than-average volatility, focuses on 31 selected holdings, and has been available since 2015, giving it a proven track record.
How to Buy XLRE — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "XLRE" — Use the search bar in your brokerage platform to find Real Estate Select Sector SPDR Fund.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into XLRE
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With XLRE's expense ratio of 0.09%, a $10,000 investment would lose approximately $771 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
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Pros and Cons of XLRE
Pros
- ✓Provides real estate exposure without the hassle of owning physical property
- ✓Strong dividend income from REIT distributions
- ✓Low expense ratio for a sector-specific fund
- ✓Diversified across multiple property types including data centers and logistics
Cons
- ✗Concentrated in a single sector making it more volatile than broad market funds
- ✗Sensitive to interest rate changes which can pressure REIT valuations
- ✗Relatively small number of holdings limits diversification
XLRE vs Similar ETFs
See how XLRE stacks up against similar funds:
Frequently Asked Questions
Is XLRE a good ETF for beginners?▾
XLRE has a Beginner Suitability Score of 8/10 on our scale. This makes it a strong choice for new investors due to its low fees and focused strategy.
What is the expense ratio of XLRE?▾
XLRE has an expense ratio of 0.09%. This means for every $10,000 you invest, you pay approximately $9 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in XLRE?▾
You can invest in XLRE with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does XLRE pay dividends?▾
Yes, XLRE pays dividends with a current yield of approximately 3.40%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in XLRE?▾
The top holdings in XLRE include Prologis (10.50%), American Tower (9.50%), Equinix (8.50%), and more. The fund holds 31 total positions, providing focused exposure to selected companies.