XLRE is an exchange traded fund whose portfolio is comprised of Real Estate sector stocks. This investment seeks to provide the same performance as stocks in the Real Estate Select Sector Index. The index includes securities of companies from the following industries: real estate management and development, REITs, excluding mortgage REITs.
When is the best month to buy XLRE?
Real Estate Select Sector SPDR Fund has performed the best during the month of July, during which shares have returned an average of 3.51% over the last 8 years.
When is the worst month to buy XLRE?
Real Estate Select Sector SPDR Fund has performed the worst during the month of September, during which shares have returned an average of -3.72% over the last 8 years.
Seasonality can be defined as the predictable changes that occur over a one-year period in an economy, market or business, based on the seasons of the calendar year.
Academic research supports the notion that seasonal pricing patterns occur with regularity in futures contracts of commodities with fixed maturities, most notably in the natural gas and crude oil markets.
For example, Ewald, Haugom, Stordal, Lien and Wu find evidence for seasonality in futures products that appears distinct from the seasonal patterns in spot price for the respective commodities.
Traders often attempt to take advantage of seasonal patterns through spread trades that hold long and short positions in assets of differing maturities simultaneously or across related assets in financial products such as
equity sector ETFs,
index futures or
commodities.
Investors in individual equities may take seasonality into account when when analyzing the impact that seasonal changes may have on the fortunes of particular companies. For example, for many businesses, sales can vary depending on the season. In such cases, the share prices of business that experience higher profits during specific seasons may simultaneously register significant gains while later giving them back during off-peak periods.
