XHB vs. FLM

Last updated Jul 12, 2026

XHB (SPDR S&P Homebuilders ETF) and FLM (First Trust Global Engineering and Construction ETF) are both Building & Construction funds - XHB tracks the S&P Homebuilders Select Industry Index while FLM tracks the ISE Global Engineering & Construction Index. Both are passively managed. At a 0.35 correlation, their price movements are largely independent. XHB charges 0.35%/yr vs 0.70%/yr for FLM.

Performance

XHB vs. FLM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Homebuilders ETF (XHB) and First Trust Global Engineering and Construction ETF (FLM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

XHB

• 1D: 0.93%
• 1M: 1.09%
• 6M: -3.77%
• YTD: 5.80%
• 1Y: 4.32%
• 3Y*: 10.94%
• 5Y*: 9.07%
• 10Y*: 12.86%

FLM

• 1D: —
• 1M: —
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

XHB vs. FLM - Yearly Performance Comparison

	2026 (YTD)
XHB SPDR S&P Homebuilders ETF	3.86%
FLM First Trust Global Engineering and Construction ETF	-4.55%

Correlation

The correlation between XHB and FLM is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 5, 2026	0.35

XHB vs. FLM - Sectors Allocation Comparison

Sectors	XHB	FLM
Consumer Cyclical	61.8%	-
Industrials	20.3%	37.1%
Basic Materials	14.4%	7.4%
Consumer Defensive	3.5%	-
Real Estate	1.1%	5.7%
Communication Services	-	0.7%
Energy	-	8.1%
Financial Services	-	-
Healthcare	-	-
Technology	-	7.9%
Utilities	-	0.7%

Return for Risk

XHB vs. FLM — Risk / Return Rank

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

XHB

XHB Risk / Return Rank: 11
XHB Sharpe Ratio Rank: 11
XHB Sortino Ratio Rank: 12
XHB Omega Ratio Rank: 12
XHB Calmar Ratio Rank: 11
XHB Martin Ratio Rank: 11

FLM

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

XHB vs. FLM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Homebuilders ETF (XHB) and First Trust Global Engineering and Construction ETF (FLM). 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.

	XHB	FLM	Difference
Sharpe ratio: Return per unit of total volatility	0.11	—	—
Sortino ratio: Return per unit of downside risk	0.40	—	—
Omega ratio: Gain probability vs. loss probability	1.04	—	—
Calmar ratio: Return relative to maximum drawdown	0.14	—	—
Martin ratio: Return relative to average drawdown	0.28	—	—

Drawdowns

Drawdown Indicators

	XHB	FLM	Difference
Max Drawdown Largest peak-to-trough decline	-81.61%	—	—
Max Drawdown (1Y) Largest decline over 1 year	-21.71%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-30.53%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-39.46%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-49.57%	—	—
Current Drawdown Current decline from peak	-12.39%	—	—
Average Drawdown Average peak-to-trough decline	-27.52%	—	—
Ulcer Index Depth and duration of drawdowns from previous peaks	10.75%	—	—

Volatility

Volatility by Period

	XHB	FLM	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.57%	—	—
Volatility (6M) Calculated over the trailing 6-month period	22.11%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	28.63%	—	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.97%	—	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.53%	—	—

XHB vs. FLM - Expense Ratio Comparison

XHB has a 0.35% expense ratio, which is lower than FLM's 0.70% expense ratio.

Dividends

XHB vs. FLM - Dividend Comparison

XHB's dividend yield for the trailing twelve months is around 0.60%, while FLM has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FLM First Trust Global Engineering and Construction ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 XHB and FLM in my portfolio?

XHB and FLM have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, XHB or FLM?

On fees, XHB is cheaper at 0.35% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, XHB or FLM?

XHB is cheaper with a 0.35% expense ratio, compared with 0.70% for FLM.

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

XHB has the higher dividend yield at 0.60%, compared with 0.00% for FLM.

What is the main difference between XHB and FLM?

XHB tracks S&P Homebuilders Select Industry Index, while FLM tracks ISE Global Engineering & Construction Index. They also come from different issuers: State Street and First Trust. Their fees differ too: 0.35% for XHB and 0.70% for FLM.