IYT vs. XHB

Last updated Jun 14, 2026

IYT (iShares Transportation Average ETF) and XHB (SPDR S&P Homebuilders ETF) are both exchange-traded funds - IYT is a Transportation Equities fund tracking the Dow Jones Transportation Average Index, while XHB is a Building & Construction fund tracking the S&P Homebuilders Select Industry Index. Both are passively managed. Over the past 10 years, IYT returned 11.08%/yr vs 13.53%/yr for XHB. A 0.70 correlation means they provide meaningful diversification when combined. IYT charges 0.42%/yr vs 0.35%/yr for XHB.

Performance

IYT vs. XHB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Transportation Average ETF (IYT) 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, IYT achieves a 16.53% return, which is significantly higher than XHB's 4.66% return. Over the past 10 years, IYT has underperformed XHB with an annualized return of 11.08%, while XHB has yielded a comparatively higher 13.53% annualized return.

IYT

• 1D: 0.45%
• 1M: 7.88%
• YTD: 16.53%
• 6M: 13.90%
• 1Y: 34.06%
• 3Y*: 14.84%
• 5Y*: 6.47%
• 10Y*: 11.08%

XHB

• 1D: -0.22%
• 1M: 7.49%
• YTD: 4.66%
• 6M: 0.06%
• 1Y: 14.89%
• 3Y*: 12.84%
• 5Y*: 9.05%
• 10Y*: 13.53%

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

IYT vs. XHB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYT iShares Transportation Average ETF	16.53%	11.48%	4.10%	24.62%	-21.74%	26.41%	14.20%	20.11%	-12.87%	18.89%
XHB SPDR S&P Homebuilders ETF	4.66%	-0.69%	9.87%	60.10%	-28.93%	49.70%	27.97%	41.30%	-25.73%	31.80%

Correlation

The correlation between IYT and XHB is 0.71, 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	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.71
Correlation (All Time) Calculated using the full available price history since Feb 6, 2006	0.70

The correlation between IYT and XHB has been stable across timeframes, ranging from 0.68 to 0.73 - a consistent structural relationship.

IYT vs. XHB - Sectors Allocation Comparison

Sectors	IYT	XHB
Industrials	84.4%	38.4%
Technology	15.6%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	60.5%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	1.1%
Utilities	-	-

Return for Risk

IYT vs. XHB — Risk / Return Rank

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

IYT

IYT Risk / Return Rank: 53
IYT Sharpe Ratio Rank: 51
IYT Sortino Ratio Rank: 51
IYT Omega Ratio Rank: 49
IYT Calmar Ratio Rank: 61
IYT Martin Ratio Rank: 56

XHB

XHB Risk / Return Rank: 17
XHB Sharpe Ratio Rank: 17
XHB Sortino Ratio Rank: 18
XHB Omega Ratio Rank: 17
XHB Calmar Ratio Rank: 17
XHB Martin Ratio Rank: 15

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.

IYT vs. XHB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Transportation Average ETF (IYT) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	IYT	XHB	Difference
Sharpe ratio: Return per unit of total volatility	1.54	0.42	+1.12
Sortino ratio: Return per unit of downside risk	2.19	0.87	+1.32
Omega ratio: Gain probability vs. loss probability	1.27	1.09	+0.18
Calmar ratio: Return relative to maximum drawdown	2.63	0.55	+2.09
Martin ratio: Return relative to average drawdown	8.56	1.13	+7.43

IYT vs. XHB - Sharpe Ratio Comparison

The current IYT Sharpe Ratio is 1.54, which is higher than the XHB Sharpe Ratio of 0.42. The chart below compares the historical Sharpe Ratios of IYT 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.

Drawdowns

IYT vs. XHB - Drawdown Comparison

The maximum IYT drawdown since its inception was -60.39%, smaller than the maximum XHB drawdown of -81.61%. Use the drawdown chart below to compare losses from any high point for IYT and XHB.

Drawdown Indicators

	IYT	XHB	Difference
Max Drawdown Largest peak-to-trough decline	-60.39%	-81.61%	+21.22%
Max Drawdown (1Y) Largest decline over 1 year	-12.09%	-21.71%	+9.62%
Max Drawdown (3Y) Largest decline over 3 years	-26.35%	-30.53%	+4.18%
Max Drawdown (5Y) Largest decline over 5 years	-29.15%	-39.46%	+10.31%
Max Drawdown (10Y) Largest decline over 10 years	-41.28%	-49.57%	+8.29%
Current Drawdown Current decline from peak	0.00%	-13.34%	+13.34%
Average Drawdown Average peak-to-trough decline	-9.30%	-27.58%	+18.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.71%	10.51%	-6.80%

Volatility

IYT vs. XHB - Volatility Comparison

The current volatility for iShares Transportation Average ETF (IYT) is 6.45%, while SPDR S&P Homebuilders ETF (XHB) has a volatility of 9.42%. This indicates that IYT experiences smaller price fluctuations and is considered to be less risky than XHB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYT	XHB	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.45%	9.42%	-2.97%
Volatility (6M) Calculated over the trailing 6-month period	15.94%	20.63%	-4.69%
Volatility (1Y) Calculated over the trailing 1-year period	20.61%	28.30%	-7.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.38%	27.77%	-5.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.18%	27.47%	-4.29%

IYT vs. XHB - Expense Ratio Comparison

IYT has a 0.42% expense ratio, which is higher than XHB's 0.35% expense ratio.

Dividends

IYT vs. XHB - Dividend Comparison

IYT's dividend yield for the trailing twelve months is around 0.93%, more than XHB's 0.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYT iShares Transportation Average ETF	0.93%	1.00%	1.08%	1.26%	1.40%	0.77%	0.93%	1.29%	1.35%	0.92%	0.96%	1.28%
XHB SPDR S&P Homebuilders ETF	0.60%	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 IYT and XHB in my portfolio?

IYT and XHB have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYT or XHB?

XHB has higher volatility (9.42%) compared to IYT (6.45%). In terms of maximum drawdown, IYT dropped -60.39% vs XHB's -81.61%.

Which ETF is better, IYT or XHB?

On 10-year performance, XHB leads with 13.53% vs 11.08% for IYT. On fees, XHB is cheaper at 0.35% per year. On volatility, IYT has been the lower-risk option at 6.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYT or XHB?

Over the 10-year period, XHB has performed better with a 13.53% return vs 11.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYT or XHB?

XHB is cheaper with a 0.35% expense ratio, compared with 0.42% for IYT.

Which ETF pays a higher dividend yield, IYT or XHB?

IYT has the higher dividend yield at 0.93%, compared with 0.60% for XHB.

What is the main difference between IYT and XHB?

IYT is categorized as Transportation Equities, while XHB is Building & Construction. IYT tracks Dow Jones Transportation Average Index, while XHB tracks S&P Homebuilders Select Industry Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.42% for IYT and 0.35% for XHB.

Which has better risk-adjusted returns?

IYT currently has the higher Sharpe Ratio (1.54 vs 0.42), 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.