XLRE — Real Estate Select Sector SPDR
SPDR (State Street) · Expense Ratio: 0.1% · Real Estate · 7bp below the Real Estate category average of 0.17%
Key Facts
| Ticker | XLRE |
| Full Name | Real Estate Select Sector SPDR |
| Provider | SPDR (State Street) |
| Expense Ratio | 0.1% |
| Category | Real Estate |
| Assets Under Management | $5B |
| Inception Year | 2015 (11 years ago) |
| Number of Holdings | 30 |
| Dividend Yield | ~2.8% (high) |
| Top Holdings | PLD, AMT, EQIX, WELL |
What Is XLRE?
XLRE, managed by SPDR (State Street), launched in 2015, is a well-established ETF with adequate liquidity for most investors in the Real Estate category. Real estate investment trust ETF providing exposure to commercial and residential property markets. With $5B in assets under management, it has adequate trading volume for most individual investors.
XLRE in a FIRE Portfolio
This fund serves as a satellite position — adding targeted exposure to real estate within a FIRE portfolio built around a broad-market core.
Satellite holdings typically make up 5-20% of your portfolio. REITs provide diversification from stocks and bonds — a 5-15% allocation adds real asset exposure and steady dividend income for FIRE portfolios.
Cost Analysis: How XLRE's 0.1% Fee Affects Your FIRE Timeline
At 0.1%, XLRE is moderately priced. Annual fees on a $100K investment: $100. Over 30 years, the fee drag shaves approximately 0.6% off your total returns. For a $1M FIRE portfolio, that's about $10,000 in cumulative fees — noticeable but reasonable for most investors.
Dividend Income Potential
With a high dividend yield of approximately 2.8%, here's what XLRE could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $2,800/year | $233/month |
| $250,000 | $7,000/year | $583/month |
| $500,000 | $14,000/year | $1,167/month |
| $1,000,000 | $28,000/year | $2,333/month |
Frequently Asked Questions About XLRE
What is the expense ratio for XLRE?
XLRE has an expense ratio of 0.1%. This is moderately priced — on a $100K portfolio, annual fees are $100. 7bp below the real estate category average of 0.17%.
Is XLRE good for a FIRE portfolio?
This fund serves as a satellite position — adding targeted exposure to real estate within a FIRE portfolio built around a broad-market core. Its 0.1% expense ratio is moderately priced for the Real Estate category.
How does the 0.1% fee affect long-term returns?
At 0.1%, you'll pay $100/year per $100K invested. Over 30 years, fees reduce total returns by approximately 0.6%. Use the embedded calculator below to model the exact impact on your specific portfolio.
Is XLRE liquid enough for my portfolio?
XLRE manages $5B in assets — a well-established ETF with adequate liquidity for most investors. For most individual FIRE investors making regular contributions, liquidity is sufficient. If you're investing large lump sums ($100K+), use limit orders to control your execution price.
Similar ETFs in Real Estate
- VNQ — Vanguard Real Estate ETF (0.13% · Satellite Position)
- SCHH — Schwab US REIT ETF (0.07% · Satellite Position)
- IYR — iShares US Real Estate ETF (0.4% · Satellite Position)
- REET — iShares Global REIT ETF (0.14% · Satellite Position)
- USRT — iShares Core US REIT ETF (0.08% · Satellite Position)
- RWR — SPDR Dow Jones REIT ETF (0.25% · Satellite Position)