Key Takeaways
- • State Street Real Estate Select Sector SPDR ETF (XLRE) charges a 0.08% expense ratio versus 0.32% for iShares Select U.S. REIT ETF (ICF), a 0.24-percentage-point difference that equals $8 versus $32 in annual fees on a $10,000 investment.
- • XLRE offers a trailing dividend yield of 3.5% compared with 2.7% for ICF, based on $1.44 and $1.74 per share in trailing-12-month distributions respectively.
- • Five-year performance is nearly identical: XLRE returned 10.5% total (2.0% CAGR) and ICF returned 11.4% total (2.2% CAGR), with maximum drawdowns of (34.1%) and (34.7%).
- • XLRE is larger, with $7.6 billion in AUM versus $2.0 billion for ICF, and both hold 30 positions with significant overlap in top holdings including Welltower, Prologis and Equinix.
- • The Globe and Mail concludes that XLRE will likely be the choice for most income-oriented investors.
Summary
The Globe and Mail compares two REIT exchange-traded funds for income-oriented investors: the State Street Real Estate Select Sector SPDR ETF (XLRE), which tracks real estate companies within the S&P 500, and the iShares Select U.S. REIT ETF (ICF), which holds a selection of large, prominent U.S. REITs. As of October 5, 2026, XLRE traded at $40.67 and ICF at $62.63 per share.
Cost is the most pronounced difference between the two funds. XLRE's 0.08% expense ratio is well below ICF's 0.32%, a gap the article characterizes as a savings of 0.24 percentage points. Income is the second differentiator: XLRE's trailing-12-month distributions of $1.44 per share produce a 3.5% yield, while ICF's $1.74 per share yields 2.7%. Both funds show a beta near 1.0 (0.96 for XLRE and 0.94 for ICF), measured against the S&P 500 using monthly returns over up to five years.
Performance over five years has been similar. According to the article, XLRE returned 10.5% in total (a 2% compound annual growth rate), while ICF returned 11.4% (2.2% CAGR). A hypothetical $1,000 investment would have grown to $1,070 in XLRE and $1,078 in ICF. Maximum five-year drawdowns were (34.1%) for XLRE and (34.7%) for ICF. XLRE's one-year total return was 0.0% as of October 5, 2026, compared with 4.5% for ICF.
Holdings overlap substantially. ICF's largest positions are Equinix (8.54%), Welltower (8.35%) and Prologis (7.99%), while XLRE's are Welltower (11.64%), Prologis (8.69%) and Equinix (7.18%). XLRE excludes mortgage REITs and was launched in 2015, while ICF was launched in 2001. The article notes that ICF does not report a sector breakdown.
The Globe and Mail concludes that the two funds have contrasting profiles overall but similar strategies and performance histories. Because XLRE leads on both income potential and fees, the publication says it will likely be the choice for most income-oriented investors.
Cost is the most pronounced difference between the two funds. XLRE's 0.08% expense ratio is well below ICF's 0.32%, a gap the article characterizes as a savings of 0.24 percentage points. Income is the second differentiator: XLRE's trailing-12-month distributions of $1.44 per share produce a 3.5% yield, while ICF's $1.74 per share yields 2.7%. Both funds show a beta near 1.0 (0.96 for XLRE and 0.94 for ICF), measured against the S&P 500 using monthly returns over up to five years.
Performance over five years has been similar. According to the article, XLRE returned 10.5% in total (a 2% compound annual growth rate), while ICF returned 11.4% (2.2% CAGR). A hypothetical $1,000 investment would have grown to $1,070 in XLRE and $1,078 in ICF. Maximum five-year drawdowns were (34.1%) for XLRE and (34.7%) for ICF. XLRE's one-year total return was 0.0% as of October 5, 2026, compared with 4.5% for ICF.
Holdings overlap substantially. ICF's largest positions are Equinix (8.54%), Welltower (8.35%) and Prologis (7.99%), while XLRE's are Welltower (11.64%), Prologis (8.69%) and Equinix (7.18%). XLRE excludes mortgage REITs and was launched in 2015, while ICF was launched in 2001. The article notes that ICF does not report a sector breakdown.
The Globe and Mail concludes that the two funds have contrasting profiles overall but similar strategies and performance histories. Because XLRE leads on both income potential and fees, the publication says it will likely be the choice for most income-oriented investors.
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