ETD vs. XHB

Last updated Jun 4, 2026

ETD (Ethan Allen Interiors Inc.) is a stock, while XHB (SPDR S&P Homebuilders ETF) is Building & Construction fund tracking the S&P Homebuilders Select Industry Index. Over the past 10 years, ETD returned 1.31%/yr vs 12.71%/yr for XHB. A 0.62 correlation means they provide meaningful diversification when combined.

Performance

ETD vs. XHB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Ethan Allen Interiors Inc. (ETD) and SPDR S&P Homebuilders ETF (XHB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ETD achieves a -6.68% return, which is significantly lower than XHB's 1.06% return. Over the past 10 years, ETD has underperformed XHB with an annualized return of 1.31%, while XHB has yielded a comparatively higher 12.71% annualized return.

ETD

• 1D: 0.54%
• 1M: 4.68%
• YTD: -6.68%
• 6M: -12.43%
• 1Y: -16.49%
• 3Y*: -1.35%
• 5Y*: -0.43%
• 10Y*: 1.31%

XHB

• 1D: -0.41%
• 1M: 2.46%
• YTD: 1.06%
• 6M: -4.89%
• 1Y: 10.40%
• 3Y*: 13.48%
• 5Y*: 8.00%
• 10Y*: 12.71%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ETD vs. XHB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ETD Ethan Allen Interiors Inc.	-6.68%	-13.21%	-5.95%	28.70%	7.47%	44.17%	11.29%	18.89%	-35.80%	-20.54%
XHB SPDR S&P Homebuilders ETF	1.06%	-0.69%	9.87%	60.10%	-28.93%	49.70%	27.97%	41.30%	-25.73%	31.80%

Correlation

The correlation between ETD and XHB is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since Feb 7, 2006	0.62

The correlation between ETD and XHB has been stable across timeframes, ranging from 0.59 to 0.66 - a consistent structural relationship.

Return for Risk

ETD vs. XHB — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ETD

ETD Risk / Return Rank: 20
ETD Sharpe Ratio Rank: 16
ETD Sortino Ratio Rank: 17
ETD Omega Ratio Rank: 17
ETD Calmar Ratio Rank: 25
ETD Martin Ratio Rank: 24

XHB

XHB Risk / Return Rank: 14
XHB Sharpe Ratio Rank: 14
XHB Sortino Ratio Rank: 16
XHB Omega Ratio Rank: 15
XHB Calmar Ratio Rank: 14
XHB Martin Ratio Rank: 13

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ETD vs. XHB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Ethan Allen Interiors Inc. (ETD) and SPDR S&P Homebuilders ETF (XHB). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ETD	XHB	Difference
Sharpe ratio: Return per unit of total volatility	-0.57	0.38	-0.95
Sortino ratio: Return per unit of downside risk	-0.65	0.80	-1.44
Omega ratio: Gain probability vs. loss probability	0.92	1.09	-0.17
Calmar ratio: Return relative to maximum drawdown	-0.47	0.48	-0.95
Martin ratio: Return relative to average drawdown	-0.88	1.01	-1.90
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ETD vs. XHB - Sharpe Ratio Comparison

The current ETD Sharpe Ratio is -0.57, which is lower than the XHB Sharpe Ratio of 0.38. The chart below compares the historical Sharpe Ratios of ETD and XHB, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ETD	XHB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.57	0.38	-0.95
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.01	0.29	-0.30
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.04	0.47	-0.43
Sharpe Ratio (All Time) Calculated using the full available price history	0.16	0.16	0.00

Drawdowns

ETD vs. XHB - Drawdown Comparison

The maximum ETD drawdown since its inception was -82.91%, roughly equal to the maximum XHB drawdown of -81.61%. Use the drawdown chart below to compare losses from any high point for ETD and XHB.

Drawdown Indicators

	ETD	XHB	Difference
Max Drawdown Largest peak-to-trough decline	-82.91%	-81.61%	-1.30%
Max Drawdown (1Y) Largest decline over 1 year	-35.36%	-21.71%	-13.65%
Max Drawdown (3Y) Largest decline over 3 years	-36.84%	-30.53%	-6.31%
Max Drawdown (5Y) Largest decline over 5 years	-36.84%	-39.46%	+2.62%
Max Drawdown (10Y) Largest decline over 10 years	-73.68%	-49.57%	-24.11%
Current Drawdown Current decline from peak	-30.52%	-16.32%	-14.20%
Average Drawdown Average peak-to-trough decline	-26.54%	-27.60%	+1.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	18.67%	10.29%	+8.38%

Volatility

ETD vs. XHB - Volatility Comparison

Ethan Allen Interiors Inc. (ETD) and SPDR S&P Homebuilders ETF (XHB) have volatilities of 8.11% and 8.43%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ETD	XHB	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.11%	8.43%	-0.32%
Volatility (6M) Calculated over the trailing 6-month period	18.98%	19.99%	-1.01%
Volatility (1Y) Calculated over the trailing 1-year period	28.96%	27.75%	+1.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	34.34%	27.64%	+6.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	37.22%	27.42%	+9.80%

Dividends

ETD vs. XHB - Dividend Comparison

ETD's dividend yield for the trailing twelve months is around 8.81%, more than XHB's 0.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ETD Ethan Allen Interiors Inc.	8.81%	7.92%	6.87%	5.95%	6.62%	10.61%	3.12%	9.34%	6.08%	2.66%	1.76%	1.87%
XHB SPDR S&P Homebuilders ETF	0.62%	0.78%	0.59%	0.77%	1.06%	0.51%	0.73%	0.89%	1.25%	0.72%	0.67%	0.50%

Frequently Asked Questions

Can I hold both ETD and XHB in my portfolio?

ETD and XHB have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ETD or XHB?

XHB has higher volatility (8.43%) compared to ETD (8.11%). In terms of maximum drawdown, ETD dropped -82.91% vs XHB's -81.61%.

Which has better risk-adjusted returns?

XHB currently has the higher Sharpe Ratio (0.38 vs -0.57), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.