Real Estate (XLRE) vs Utilities (XLU)
XLRE (Real Estate Select Sector SPDR) and XLU (Utilities Select Sector SPDR) are both rate-sensitive bond proxies. April 2026: XLRE $44.48; XLU $46.
Also known as: Real Estate (XLRE) (ETF_XLRE, real estate, REITs) · Utilities (XLU) (ETF_XLU, utilities)
Why This Comparison Matters
XLRE (Real Estate Select Sector SPDR) and XLU (Utilities Select Sector SPDR) are both rate-sensitive bond proxies. April 2026: XLRE $44.48; XLU $46. Both sectors traditionally inverse to 10Y yields. The 2024-2026 era has seen both gain AI data center exposure: XLRE through data center REITs (EQIX, DLR ~18 percent of XLRE); XLU through electricity demand growth (NextEra +26 percent past 6 months on AI capex). Pair captures: which AI-related subsector dominates. XLRE/XLU ratio approximately 0.97 (April 2026), close to parity. Historical range varies. When XLRE outperforms: data center REIT subsector strength dominates. When XLU outperforms: electricity demand utility subsector dominates.
The April 2026 Configuration
XLRE $44.48 (April 18 2026); 52-week range $39.11-$44.56. XLU $45.74-$46.30 (April 24 2026). XLRE/XLU ratio approximately 0.97 (close to parity).
XLRE composition: data centers ~18% (EQIX, DLR), industrial ~12% (PLD), residential ~15%, retail ~18%, office ~5%, specialty/cell-tower ~12%, self-storage ~8%, healthcare ~8%.
XLU composition: NextEra Energy 14.01%, Southern Company 7.23%, Duke Energy 6.96%, Constellation Energy 6.38%, AEP 5.11%.
Dividend yields: XLRE 2.44%, XLU ~3.0%.
The combined April 2026 reading: both rallying on AI data center exposure. XLRE through EQIX/DLR data center REITs. XLU through NextEra/Constellation electricity demand. XLRE/XLU at parity reflects balanced AI exposure across both sectors.
XLRE vs XLU AI Exposure
Both sectors gained AI exposure in 2024-2026 through different channels.
XLRE AI exposure (data center REITs): EQIX (Equinix) ~10% of XLRE; DLR (Digital Realty) ~6%. Combined ~16% of XLRE. Plus AMT (American Tower cell-tower) ~6% which has data center adjacency. Total ~22% of XLRE has direct AI/digital infrastructure exposure.
XLU AI exposure (electricity demand): NextEra (NEE) 14.01% benefits from data center power purchase agreements + clean energy capex. Constellation Energy (CEG) 6.38% is nuclear power leader with multiple direct PPAs with hyperscalers. Duke Energy (DUK) 6.96% has major data center customers. Total ~28% of XLU has direct AI/data-center electricity exposure.
The practical implication: XLU has higher concentrated AI exposure (28% of weight) than XLRE (22%). However, XLRE data center REITs have higher growth profile (~10-15% revenue growth) than utilities (~5-8% earnings growth). Different AI tailwind speeds.
How XLRE and XLU Rate Sensitivity Differs
Both sectors negative rate sensitivity (bond proxy) but with different mechanics.
XLRE: 8-10 year effective duration. REIT cap rates sensitive to 10Y. Property values inverse to rates. Plus AI data center growth subsector. Pre-2024 correlation -0.50 to -0.65; 2024-2026 weakened to -0.30 to -0.45.
XLU: regulated returns provide stability. Bond proxy through dividend yield sensitivity. Utility duration ~10-15 year. Pre-2024 correlation -0.50 to -0.65; 2024-2026 weakened to -0.20 to -0.35 (data center demand override).
Conditional Forward Response (Tail Events)
How Utilities (XLU) has historically behaved in the 5 sessions following a top-decile or bottom-decile daily move in Real Estate (XLRE). Computed from 1,279 aligned daily observations ending .
Following these triggers, Utilities (XLU) rises 0.03% on average over the next 5 sessions, versus an unconditional baseline of +0.16%. 128 qualifying events; Utilities (XLU) closed positive in 51% of them.
90-Day Statistics
Explore Each Metric
Related Scenarios & Forecasts
Get daily macro analysis comparing key metrics delivered to your inbox. Stay ahead of market-moving divergences.
Frequently Asked Questions
What are XLRE and XLU?+
XLRE (Real Estate Select Sector SPDR) and XLU (Utilities Select Sector SPDR) are both rate-sensitive bond proxies. April 2026: XLRE $44.48; XLU $45.74-$46.30. XLRE/XLU ratio ~0.97 (close to parity). XLRE composition: data centers ~18% (EQIX, DLR), industrial ~12% (PLD), residential ~15%, retail ~18%, office ~5%, specialty/cell-tower ~12%, self-storage ~8%, healthcare ~8%. XLU composition: NextEra 14.01%, Southern Company 7.23%, Duke Energy 6.96%, Constellation Energy 6.38%, AEP 5.11%. Dividend yields: XLRE 2.44%, XLU ~3.0%. Both sectors gained AI data center exposure 2024-2026.
How do XLRE and XLU AI exposure differ?+
XLRE AI exposure (data center REITs): EQIX ~10% of XLRE; DLR ~6%. Combined ~16%. Plus AMT cell-tower ~6% with data center adjacency. Total ~22% of XLRE has direct AI/digital infrastructure exposure. XLU AI exposure (electricity demand): NextEra 14.01% benefits from data center PPAs + clean energy capex. Constellation 6.38% nuclear power leader with multiple direct PPAs with hyperscalers. Duke 6.96% major data center customers. Total ~28% of XLU has direct AI/data-center electricity exposure. XLU has higher concentrated AI exposure (28% vs XLRE 22%). XLRE data center REITs have higher growth profile (~10-15% revenue growth) than utilities (~5-8% earnings growth).
How do XLRE and XLU rate sensitivities differ?+
Both sectors negative rate sensitivity (bond proxy) but with different mechanics. XLRE: 8-10 year effective duration. REIT cap rates sensitive to 10Y. Property values inverse to rates. Plus AI data center growth subsector. Pre-2024 correlation -0.50 to -0.65; 2024-2026 weakened to -0.30 to -0.45. XLU: regulated returns provide stability. Bond proxy through dividend yield sensitivity. Utility duration ~10-15 year. Pre-2024 correlation -0.50 to -0.65; 2024-2026 weakened to -0.20 to -0.35 (data center demand override). 2024-2026 era saw XLU correlation weaken more than XLRE due to stronger AI exposure.
Related Comparisons
Explore Across Convex
Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.