XHB vs. WOOD

Last updated Aug 2, 2026

XHB (SPDR S&P Homebuilders ETF) and WOOD (iShares Global Timber & Forestry ETF) are both exchange-traded funds - XHB is a Building & Construction fund tracking the S&P Homebuilders Select Industry Index, while WOOD is a Materials fund tracking the S&P Global Timber & Forestry Index. Both are passively managed. Over the past 10 years, XHB returned 12.21%/yr vs 6.04%/yr for WOOD. Their 0.68 correlation means they have sometimes moved together and sometimes differently. XHB charges 0.35%/yr vs 0.46%/yr for WOOD.

Performance

XHB vs. WOOD - Performance Comparison

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

Returns By Period

In the year-to-date period, XHB achieves a 1.01% return, which is significantly higher than WOOD's 0.84% return. Over the past 10 years, XHB has outperformed WOOD with an annualized return of 12.21%, while WOOD has yielded a comparatively lower 6.04% annualized return.

XHB

• 1D: -0.79%
• 1M: -7.88%
• 6M: -4.06%
• YTD: 1.01%
• 1Y: 0.45%
• 3Y*: 7.59%
• 5Y*: 7.43%
• 10Y*: 12.21%
• ALL TIME*: 5.06%

WOOD

• 1D: -0.18%
• 1M: 7.81%
• 6M: -2.77%
• YTD: 0.84%
• 1Y: 3.37%
• 3Y*: 0.18%
• 5Y*: -2.02%
• 10Y*: 6.04%
• ALL TIME*: 4.07%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
WOOD iShares Global Timber & Forestry ETF	$922.15K	$727.96K	$1.06M
XHB SPDR S&P Homebuilders ETF	$247.88M	$253.08M	$291.07M

XHB vs. WOOD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XHB SPDR S&P Homebuilders ETF	1.01%	-0.69%	9.87%	60.10%	-28.93%	49.70%	27.97%	41.30%	-25.73%	31.80%
WOOD iShares Global Timber & Forestry ETF	0.84%	-3.27%	-4.21%	13.84%	-19.39%	17.03%	20.36%	19.75%	-17.73%	34.49%

Correlation

The correlation between XHB and WOOD is 0.70, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.70
Correlation (3Y) Balances recent behavior with more history.	0.66
Correlation (5Y) Shows whether the relationship held over a longer period.	0.67
Correlation (10Y) Provides a long-term view across more market conditions.	0.65
Correlation (All Time) Calculated using the full available price history since Jun 25, 2008	0.68

The correlation between XHB and WOOD has been stable across timeframes, ranging from 0.65 to 0.70 - a consistent structural relationship.

XHB vs. WOOD - Sectors Allocation Comparison

Sectors	XHB	WOOD
Consumer Cyclical	60.4%	22.5%
Industrials	38.2%	-
Basic Materials	14.4%	65.3%
Consumer Defensive	3.5%	-
Real Estate	1.3%	12.2%
Communication Services	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XHB vs. WOOD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

XHB

XHB Risk / Return Rank: 13
XHB Sharpe Ratio Rank: 13
XHB Sortino Ratio Rank: 14
XHB Omega Ratio Rank: 13
XHB Calmar Ratio Rank: 13
XHB Martin Ratio Rank: 12

WOOD

WOOD Risk / Return Rank: 15
WOOD Sharpe Ratio Rank: 16
WOOD Sortino Ratio Rank: 15
WOOD Omega Ratio Rank: 15
WOOD Calmar Ratio Rank: 14
WOOD Martin Ratio Rank: 13

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

XHB vs. WOOD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Homebuilders ETF (XHB) and iShares Global Timber & Forestry ETF (WOOD). 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	WOOD	Difference
Sharpe ratio: Return per unit of total volatility	0.08	0.21	-0.13
Sortino ratio: Return per unit of downside risk	0.35	0.44	-0.09
Omega ratio: Gain probability vs. loss probability	1.04	1.05	-0.01
Calmar ratio: Return relative to maximum drawdown	0.11	0.18	-0.07
Martin ratio: Return relative to average drawdown	0.21	0.34	-0.13

XHB vs. WOOD - Sharpe Ratio Comparison

The current XHB Sharpe Ratio is 0.08, which is lower than the WOOD Sharpe Ratio of 0.21. The chart below compares the historical Sharpe Ratios of XHB and WOOD, 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. WOOD - Drawdown Comparison

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

Drawdown Indicators

	XHB	WOOD	Difference
Max Drawdown Largest peak-to-trough decline	-81.61%	-63.25%	-18.36%
Max Drawdown (1Y) Largest decline over 1 year	-21.71%	-21.64%	-0.07%
Max Drawdown (3Y) Largest decline over 3 years	-30.53%	-22.79%	-7.74%
Max Drawdown (5Y) Largest decline over 5 years	-39.46%	-30.71%	-8.75%
Max Drawdown (10Y) Largest decline over 10 years	-49.57%	-50.20%	+0.63%
Current Drawdown Current decline from peak	-16.36%	-17.97%	+1.61%
Average Drawdown Average peak-to-trough decline	-27.48%	-14.83%	-12.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.08%	11.43%	-0.35%

Volatility

XHB vs. WOOD - Volatility Comparison

SPDR S&P Homebuilders ETF (XHB) has a higher volatility of 7.68% compared to iShares Global Timber & Forestry ETF (WOOD) at 5.30%. This indicates that XHB's price experiences larger fluctuations and is considered to be riskier than WOOD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XHB	WOOD	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.68%	5.30%	+2.38%
Volatility (6M) Calculated over the trailing 6-month period	21.65%	14.61%	+7.04%
Volatility (1Y) Calculated over the trailing 1-year period	28.26%	18.65%	+9.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.00%	19.74%	+8.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.59%	21.74%	+5.85%

XHB vs. WOOD - Expense Ratio Comparison

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

Dividends

XHB vs. WOOD - Dividend Comparison

XHB's dividend yield for the trailing twelve months is around 0.63%, less than WOOD's 2.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
WOOD iShares Global Timber & Forestry ETF	2.34%	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	0.63%	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 WOOD in my portfolio?

XHB and WOOD have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XHB or WOOD?

XHB has higher volatility (7.68%) compared to WOOD (5.30%). In terms of maximum drawdown, XHB dropped -81.61% vs WOOD's -63.25%.

Which ETF is better, XHB or WOOD?

On 10-year performance, XHB leads with 12.21% vs 6.04% for WOOD. On fees, XHB is cheaper at 0.35% per year. On volatility, WOOD has been the lower-risk option at 5.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XHB or WOOD?

Over the 10-year period, XHB has performed better with a 12.21% return vs 6.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XHB or WOOD?

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

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

WOOD has the higher dividend yield at 2.34%, compared with 0.63% for XHB.

What is the main difference between XHB and WOOD?

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

Which has better risk-adjusted returns?

WOOD currently has the higher Sharpe Ratio (0.21 vs 0.08), 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.