NETL vs XLRE

NETLFColterpoint Net Lease Real Estate ETF

XLREAState Street Real Estate Select Sector SPDR ETF

In short

NETL One idea, cleanly cut: US REITs whose tenants pay the taxes, insurance and upkeep under long leases. It has tracked a rules-based net lease index since 2019, pays monthly, and charges more than the broad real estate crowd.

XLRE The S&P 500's landlords in one ticker: about 30 large-cap real estate companies, mortgage REITs excluded, for 0.08% a year. It launched in 2015, before real estate was even its own market sector.

Stated mandate

NETL The Fund is designed to follow the performance of the Colterpoint Net Lease Real Estate Index before fees and expenses.

XLRE The fund seeks to provide investment results that generally correspond to the price and yield performance of the Real Estate Select Sector Index, representing the real estate sector of the S&P 500 Index.

Why people hold it

• NETL Pure-play net lease exposure: landlords on long contractual leases where the tenant covers most property costs. Broad REIT funds bury this slice inside offices, towers and malls.netleaseetf.com
• The index screens for net lease specialists and caps how much weight any single company or tenant can carry, so one troubled retailer cannot dominate the book.netleaseetf.com
• Pays distributions monthly rather than the quarterly rhythm most equity real estate funds keep.
• Running the same passive index mandate since its 2019 launch, with the benchmark named in the prospectus.

• XLRE 0.08% a year sits at the floor of the real estate peer group, where the median fund charges several times more.
• Clean mandate: S&P 500 real estate management, development and equity REITs, with mortgage REITs left out, so no mortgage paper rides along in a property fund.ssga.com
• A multi-billion-dollar fund and one of the most actively traded names in its category, which usually shows up as tight spreads when you click buy.
• Running since 2015, arriving before S&P and MSCI split real estate out as its own sector in 2016. Pays quarterly, and ranks among the stronger builds in a crowded lineup.reit.com

Worth knowing

• NETL At 0.60% a year, it costs multiples of broad US real estate index funds such as SCHH (0.07%) and VNQ (0.13%). The specialist niche is what you are paying the premium for.
• A small fund that does not trade heavily, so bid-ask spreads can widen, particularly in fast markets.
• Distributions can include return of capital, which hands back part of your own investment rather than income the portfolio earned.

• XLRE About 30 holdings, so the largest positions carry real weight and one company's stumble is felt across the fund.
• The S&P 500 sets the universe, so REITs that never reach large-cap index status stay outside the portfolio.ssga.comsec.gov
• This is one slice of the market, moving with the property cycle rather than blending into a broad index.

Full NETL profile⁠

Full XLRE profile⁠