XHB vs. ITB

Last updated Jul 12, 2026

XHB (SPDR S&P Homebuilders ETF) and ITB (iShares U.S. Home Construction ETF) are both Building & Construction funds - XHB tracks the S&P Homebuilders Select Industry Index while ITB tracks the Dow Jones U.S. Select Home Construction Index. Both are passively managed. Over the past 10 years, XHB returned 12.86%/yr vs 13.57%/yr for ITB. Their correlation of 0.95 suggests significant overlap in exposure. XHB charges 0.35%/yr vs 0.38%/yr for ITB.

Performance

XHB vs. ITB - Performance Comparison

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

Returns By Period

In the year-to-date period, XHB achieves a 5.80% return, which is significantly higher than ITB's 1.88% return. Over the past 10 years, XHB has underperformed ITB with an annualized return of 12.86%, while ITB has yielded a comparatively higher 13.57% annualized return.

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%

ITB

• 1D: 0.90%
• 1M: 1.00%
• 6M: -8.30%
• YTD: 1.88%
• 1Y: -0.37%
• 3Y*: 5.78%
• 5Y*: 8.26%
• 10Y*: 13.57%

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

XHB vs. ITB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XHB SPDR S&P Homebuilders ETF	5.80%	-0.69%	9.87%	60.10%	-28.93%	49.70%	27.97%	41.30%	-25.73%	31.80%
ITB iShares U.S. Home Construction ETF	1.88%	-5.26%	2.06%	68.91%	-26.26%	49.25%	26.42%	48.70%	-30.92%	59.65%

Correlation

The correlation between XHB and ITB is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since May 5, 2006	0.95

The correlation between XHB and ITB has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

XHB vs. ITB - Sectors Allocation Comparison

Sectors	XHB	ITB
Consumer Cyclical	61.8%	74.4%
Industrials	20.3%	16.0%
Basic Materials	14.4%	8.9%
Consumer Defensive	3.5%	-
Real Estate	1.1%	0.7%
Communication Services	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XHB vs. ITB — 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

ITB

ITB Risk / Return Rank: 9
ITB Sharpe Ratio Rank: 9
ITB Sortino Ratio Rank: 9
ITB Omega Ratio Rank: 9
ITB Calmar Ratio Rank: 9
ITB Martin Ratio Rank: 9

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. ITB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Homebuilders ETF (XHB) and iShares U.S. Home Construction ETF (ITB). 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	ITB	Difference
Sharpe ratio: Return per unit of total volatility	0.11	-0.06	+0.17
Sortino ratio: Return per unit of downside risk	0.40	0.14	+0.25
Omega ratio: Gain probability vs. loss probability	1.04	1.02	+0.03
Calmar ratio: Return relative to maximum drawdown	0.14	-0.07	+0.21
Martin ratio: Return relative to average drawdown	0.28	-0.13	+0.41

XHB vs. ITB - Sharpe Ratio Comparison

The current XHB Sharpe Ratio is 0.11, which is higher than the ITB Sharpe Ratio of -0.06. The chart below compares the historical Sharpe Ratios of XHB and ITB, 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

XHB vs. ITB - Drawdown Comparison

The maximum XHB drawdown since its inception was -81.61%, smaller than the maximum ITB drawdown of -86.53%. Use the drawdown chart below to compare losses from any high point for XHB and ITB.

Drawdown Indicators

	XHB	ITB	Difference
Max Drawdown Largest peak-to-trough decline	-81.61%	-86.53%	+4.92%
Max Drawdown (1Y) Largest decline over 1 year	-21.71%	-26.04%	+4.33%
Max Drawdown (3Y) Largest decline over 3 years	-30.53%	-33.35%	+2.82%
Max Drawdown (5Y) Largest decline over 5 years	-39.46%	-40.55%	+1.09%
Max Drawdown (10Y) Largest decline over 10 years	-49.57%	-52.10%	+2.53%
Current Drawdown Current decline from peak	-12.39%	-22.77%	+10.38%
Average Drawdown Average peak-to-trough decline	-27.52%	-37.02%	+9.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.75%	13.97%	-3.22%

Volatility

XHB vs. ITB - Volatility Comparison

The current volatility for SPDR S&P Homebuilders ETF (XHB) is 10.57%, while iShares U.S. Home Construction ETF (ITB) has a volatility of 11.13%. This indicates that XHB experiences smaller price fluctuations and is considered to be less risky than ITB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XHB	ITB	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.57%	11.13%	-0.56%
Volatility (6M) Calculated over the trailing 6-month period	22.11%	22.59%	-0.48%
Volatility (1Y) Calculated over the trailing 1-year period	28.63%	30.21%	-1.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.97%	29.51%	-1.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.53%	30.13%	-2.60%

XHB vs. ITB - Expense Ratio Comparison

XHB has a 0.35% expense ratio, which is lower than ITB's 0.38% expense ratio.

Dividends

XHB vs. ITB - Dividend Comparison

XHB's dividend yield for the trailing twelve months is around 0.60%, less than ITB's 0.66% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ITB iShares U.S. Home Construction ETF	0.66%	1.67%	0.46%	0.48%	0.86%	0.37%	0.46%	0.50%	0.63%	0.28%	0.43%	0.34%
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 ITB in my portfolio?

With a correlation of 0.96, XHB and ITB move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XHB or ITB?

ITB has higher volatility (11.13%) compared to XHB (10.57%). In terms of maximum drawdown, XHB dropped -81.61% vs ITB's -86.53%.

Which ETF is better, XHB or ITB?

On 10-year performance, ITB leads with 13.57% vs 12.86% for XHB. On fees, XHB is cheaper at 0.35% per year. On volatility, XHB has been the lower-risk option at 10.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XHB or ITB?

Over the 10-year period, ITB has performed better with a 13.57% return vs 12.86%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XHB or ITB?

XHB is cheaper with a 0.35% expense ratio, compared with 0.38% for ITB.

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

ITB has the higher dividend yield at 0.66%, compared with 0.60% for XHB.

What is the main difference between XHB and ITB?

XHB tracks S&P Homebuilders Select Industry Index, while ITB tracks Dow Jones U.S. Select Home Construction Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.35% for XHB and 0.38% for ITB.

Which has better risk-adjusted returns?

XHB currently has the higher Sharpe Ratio (0.11 vs -0.06), 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.