XHB vs. IYR
XHB (SPDR S&P Homebuilders ETF) and IYR (iShares U.S. Real Estate ETF) are both exchange-traded funds - XHB is a Building & Construction fund tracking the S&P Homebuilders Select Industry Index, while IYR is a REIT fund tracking the Dow Jones U.S. Real Estate Index. Both are passively managed. Over the past 10 years, XHB returned 13.53%/yr vs 5.97%/yr for IYR. A 0.62 correlation means they provide meaningful diversification when combined. XHB charges 0.35%/yr vs 0.42%/yr for IYR.
Performance
XHB vs. IYR - Performance Comparison
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Returns By Period
In the year-to-date period, XHB achieves a 4.66% return, which is significantly lower than IYR's 11.47% return. Over the past 10 years, XHB has outperformed IYR with an annualized return of 13.53%, while IYR has yielded a comparatively lower 5.97% annualized return.
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%
IYR
- 1D
- 0.89%
- 1M
- 3.00%
- YTD
- 11.47%
- 6M
- 11.46%
- 1Y
- 12.40%
- 3Y*
- 9.71%
- 5Y*
- 2.47%
- 10Y*
- 5.97%
XHB vs. IYR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
IYR iShares U.S. Real Estate ETF | 11.47% | 3.38% | 4.41% | 11.89% | -25.51% | 38.74% | -5.23% | 28.21% | -4.33% | 9.31% |
Correlation
The correlation between XHB and IYR is 0.57, 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 | 0.57 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.61 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.64 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.58 |
Correlation (All Time) Calculated using the full available price history since Feb 6, 2006 | 0.62 |
The correlation between XHB and IYR has been stable across timeframes, ranging from 0.57 to 0.64 - a consistent structural relationship.
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Return for Risk
XHB vs. IYR — Risk / Return Rank
XHB
IYR
XHB vs. IYR - 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. Real Estate ETF (IYR). 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 | IYR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.42 | ||
| Sortino ratioReturn per unit of downside risk | -0.37 | ||
| Omega ratioGain probability vs. loss probability | 1.09 | 1.15 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | 0.55 | 1.34 | -0.79 |
| Martin ratioReturn relative to average drawdown | 1.13 | 4.19 | -3.06 |
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Drawdowns
XHB vs. IYR - Drawdown Comparison
The maximum XHB drawdown since its inception was -81.61%, which is greater than IYR's maximum drawdown of -74.13%. Use the drawdown chart below to compare losses from any high point for XHB and IYR.
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Drawdown Indicators
| XHB | IYR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -81.61% | -74.13% | -7.48% |
Max Drawdown (1Y)Largest decline over 1 year | -21.71% | -8.54% | -13.17% |
Max Drawdown (3Y)Largest decline over 3 years | -30.53% | -17.52% | -13.01% |
Max Drawdown (5Y)Largest decline over 5 years | -39.46% | -33.75% | -5.71% |
Max Drawdown (10Y)Largest decline over 10 years | -49.57% | -42.32% | -7.25% |
Current DrawdownCurrent decline from peak | -13.34% | 0.00% | -13.34% |
Average DrawdownAverage peak-to-trough decline | -27.58% | -12.89% | -14.69% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.51% | 2.73% | +7.78% |
Volatility
XHB vs. IYR - Volatility Comparison
SPDR S&P Homebuilders ETF (XHB) has a higher volatility of 9.42% compared to iShares U.S. Real Estate ETF (IYR) at 4.80%. This indicates that XHB's price experiences larger fluctuations and is considered to be riskier than IYR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XHB | IYR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.42% | 4.80% | +4.62% |
Volatility (6M)Calculated over the trailing 6-month period | 20.63% | 9.87% | +10.76% |
Volatility (1Y)Calculated over the trailing 1-year period | 28.30% | 13.58% | +14.72% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 27.77% | 18.76% | +9.01% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.47% | 20.34% | +7.13% |
XHB vs. IYR - Expense Ratio Comparison
XHB has a 0.35% expense ratio, which is lower than IYR's 0.42% expense ratio.
Dividends
XHB vs. IYR - Dividend Comparison
XHB's dividend yield for the trailing twelve months is around 0.60%, less than IYR's 2.15% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IYR iShares U.S. Real Estate ETF | 2.15% | 2.48% | 2.57% | 2.75% | 2.92% | 2.06% | 2.58% | 3.05% | 3.53% | 3.73% | 4.41% | 3.92% |
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
XHB and IYR have a correlation of 0.57, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XHB has higher volatility (9.42%) compared to IYR (4.80%). In terms of maximum drawdown, XHB dropped -81.61% vs IYR's -74.13%.
On 10-year performance, XHB leads with 13.53% vs 5.97% for IYR. On fees, XHB is cheaper at 0.35% per year. On volatility, IYR has been the lower-risk option at 4.80%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XHB has performed better with a 13.53% return vs 5.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XHB is cheaper with a 0.35% expense ratio, compared with 0.42% for IYR.
IYR has the higher dividend yield at 2.15%, compared with 0.60% for XHB.
XHB is categorized as Building & Construction, while IYR is REIT. XHB tracks S&P Homebuilders Select Industry Index, while IYR tracks Dow Jones U.S. Real Estate Index. They also come from different issuers: State Street and iShares. Their fees differ too: 0.35% for XHB and 0.42% for IYR.
IYR currently has the higher Sharpe Ratio (0.84 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.
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