WOOD vs. XHB

Last updated Jun 24, 2026

WOOD (iShares Global Timber & Forestry ETF) and XHB (SPDR S&P Homebuilders ETF) are both exchange-traded funds - WOOD is a Materials fund tracking the S&P Global Timber & Forestry 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, WOOD returned 5.97%/yr vs 13.70%/yr for XHB. A 0.68 correlation means they provide meaningful diversification when combined. WOOD charges 0.46%/yr vs 0.35%/yr for XHB.

Performance

WOOD vs. XHB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Global Timber & Forestry ETF (WOOD) 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, WOOD achieves a -7.28% return, which is significantly lower than XHB's 5.40% return. Over the past 10 years, WOOD has underperformed XHB with an annualized return of 5.97%, while XHB has yielded a comparatively higher 13.70% annualized return.

WOOD

• 1D: -1.42%
• 1M: 1.59%
• YTD: -7.28%
• 6M: -6.36%
• 1Y: -6.77%
• 3Y*: -0.01%
• 5Y*: -3.45%
• 10Y*: 5.97%

XHB

• 1D: -0.85%
• 1M: 8.35%
• YTD: 5.40%
• 6M: 4.24%
• 1Y: 11.77%
• 3Y*: 12.86%
• 5Y*: 9.43%
• 10Y*: 13.70%

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

WOOD vs. XHB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
WOOD iShares Global Timber & Forestry ETF	-7.28%	-3.27%	-4.21%	13.84%	-19.39%	17.03%	20.36%	19.75%	-17.73%	34.49%
XHB SPDR S&P Homebuilders ETF	5.40%	-0.69%	9.87%	60.10%	-28.93%	49.70%	27.97%	41.30%	-25.73%	31.80%

Correlation

The correlation between WOOD and XHB is 0.72, 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	0.72
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (10Y) Calculated over the trailing 10-year period	0.65
Correlation (All Time) Calculated using the full available price history since Jun 25, 2008	0.68

The correlation between WOOD and XHB has been stable across timeframes, ranging from 0.65 to 0.72 - a consistent structural relationship.

WOOD vs. XHB - Sectors Allocation Comparison

Sectors	WOOD	XHB
Basic Materials	62.4%	-
Consumer Cyclical	24.6%	60.5%
Real Estate	13.0%	1.1%
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	38.4%
Technology	-	-
Utilities	-	-

Return for Risk

WOOD vs. XHB — Risk / Return Rank

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

WOOD

WOOD Risk / Return Rank: 6
WOOD Sharpe Ratio Rank: 6
WOOD Sortino Ratio Rank: 6
WOOD Omega Ratio Rank: 6
WOOD Calmar Ratio Rank: 6
WOOD Martin Ratio Rank: 6

XHB

XHB Risk / Return Rank: 15
XHB Sharpe Ratio Rank: 15
XHB Sortino Ratio Rank: 17
XHB Omega Ratio Rank: 15
XHB Calmar Ratio Rank: 15
XHB Martin Ratio Rank: 14

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.

WOOD vs. XHB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Global Timber & Forestry ETF (WOOD) 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.

	WOOD	XHB	Difference
Sharpe ratio: Return per unit of total volatility	-0.36	0.42	-0.78
Sortino ratio: Return per unit of downside risk	-0.39	0.87	-1.26
Omega ratio: Gain probability vs. loss probability	0.96	1.09	-0.14
Calmar ratio: Return relative to maximum drawdown	-0.31	0.54	-0.86
Martin ratio: Return relative to average drawdown	-0.67	1.11	-1.78

WOOD vs. XHB - Sharpe Ratio Comparison

The current WOOD Sharpe Ratio is -0.36, which is lower than the XHB Sharpe Ratio of 0.42. The chart below compares the historical Sharpe Ratios of WOOD 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

WOOD vs. XHB - Drawdown Comparison

The maximum WOOD drawdown since its inception was -63.25%, smaller than the maximum XHB drawdown of -81.61%. Use the drawdown chart below to compare losses from any high point for WOOD and XHB.

Drawdown Indicators

	WOOD	XHB	Difference
Max Drawdown Largest peak-to-trough decline	-63.25%	-81.61%	+18.36%
Max Drawdown (1Y) Largest decline over 1 year	-21.64%	-21.71%	+0.07%
Max Drawdown (3Y) Largest decline over 3 years	-22.79%	-30.53%	+7.74%
Max Drawdown (5Y) Largest decline over 5 years	-30.71%	-39.46%	+8.75%
Max Drawdown (10Y) Largest decline over 10 years	-50.20%	-49.57%	-0.63%
Current Drawdown Current decline from peak	-24.58%	-12.72%	-11.86%
Average Drawdown Average peak-to-trough decline	-14.79%	-27.56%	+12.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.14%	10.62%	-0.48%

Volatility

WOOD vs. XHB - Volatility Comparison

The current volatility for iShares Global Timber & Forestry ETF (WOOD) is 5.12%, while SPDR S&P Homebuilders ETF (XHB) has a volatility of 8.60%. This indicates that WOOD 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

	WOOD	XHB	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.12%	8.60%	-3.48%
Volatility (6M) Calculated over the trailing 6-month period	14.22%	21.07%	-6.85%
Volatility (1Y) Calculated over the trailing 1-year period	18.90%	28.40%	-9.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.74%	27.84%	-8.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.76%	27.49%	-5.73%

WOOD vs. XHB - Expense Ratio Comparison

WOOD has a 0.46% expense ratio, which is higher than XHB's 0.35% expense ratio.

Dividends

WOOD vs. XHB - Dividend Comparison

WOOD's dividend yield for the trailing twelve months is around 2.55%, more than XHB's 0.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
WOOD iShares Global Timber & Forestry ETF	2.55%	2.51%	2.09%	1.64%	2.26%	1.24%	0.98%	1.85%	2.82%	1.19%	1.65%	2.04%
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 WOOD and XHB in my portfolio?

WOOD and XHB have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, WOOD or XHB?

XHB has higher volatility (8.60%) compared to WOOD (5.12%). In terms of maximum drawdown, WOOD dropped -63.25% vs XHB's -81.61%.

Which ETF is better, WOOD or XHB?

On 10-year performance, XHB leads with 13.70% vs 5.97% for WOOD. On fees, XHB is cheaper at 0.35% per year. On volatility, WOOD has been the lower-risk option at 5.12%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, WOOD or XHB?

Over the 10-year period, XHB has performed better with a 13.70% return vs 5.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, WOOD or XHB?

XHB is cheaper with a 0.35% expense ratio, compared with 0.46% for WOOD.

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

WOOD has the higher dividend yield at 2.55%, compared with 0.60% for XHB.

What is the main difference between WOOD and XHB?

WOOD is categorized as Materials, while XHB is Building & Construction. WOOD tracks S&P Global Timber & Forestry Index, while XHB tracks S&P Homebuilders Select Industry Index. They also come from different issuers: iShares and State Street. Their fees differ too: 0.46% for WOOD and 0.35% for XHB.

Which has better risk-adjusted returns?

XHB currently has the higher Sharpe Ratio (0.42 vs -0.36), 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.