XHB vs. XLRE
XHB (SPDR S&P Homebuilders ETF) and XLRE (Real Estate Select Sector SPDR Fund) are both exchange-traded funds - XHB is a Building & Construction fund tracking the S&P Homebuilders Select Industry Index, while XLRE is a REIT fund tracking the Real Estate Select Sector Index. Both are passively managed. Over the past 10 years, XHB returned 12.21%/yr vs 6.35%/yr for XLRE. Their 0.53 correlation means they have sometimes moved together and sometimes differently. XHB charges 0.35%/yr vs 0.13%/yr for XLRE.
Performance
XHB vs. XLRE - Performance Comparison
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Returns By Period
In the year-to-date period, XHB achieves a 1.01% return, which is significantly lower than XLRE's 13.43% return. Over the past 10 years, XHB has outperformed XLRE with an annualized return of 12.21%, while XLRE has yielded a comparatively lower 6.35% 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%
XLRE
- 1D
- -0.51%
- 1M
- 0.87%
- 6M
- 10.48%
- YTD
- 13.43%
- 1Y
- 12.92%
- 3Y*
- 9.41%
- 5Y*
- 2.81%
- 10Y*
- 6.35%
- ALL TIME*
- 7.45%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $247.88M | $253.08M | $291.07M | |
| $222.98M | $209.86M | $225.46M |
XHB vs. XLRE - 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% |
XLRE Real Estate Select Sector SPDR Fund | 13.43% | 2.63% | 5.09% | 12.36% | -26.25% | 46.10% | -2.18% | 28.68% | -2.39% | 10.69% |
Correlation
The correlation between XHB and XLRE is 0.48, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.48 |
Correlation (3Y) Balances recent behavior with more history. | 0.57 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.60 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.53 |
Correlation (All Time) Calculated using the full available price history since Oct 8, 2015 | 0.53 |
The correlation between XHB and XLRE shifts across timeframes, from 0.48 (1 year) to 0.60 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
XHB vs. XLRE — Risk / Return Rank
XHB
XLRE
XHB vs. XLRE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Homebuilders ETF (XHB) and Real Estate Select Sector SPDR Fund (XLRE). 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 | XLRE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.81 | ||
| Sortino ratioReturn per unit of downside risk | -0.96 | ||
| Omega ratioGain probability vs. loss probability | 1.04 | 1.16 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 0.11 | 1.52 | -1.41 |
| Martin ratioReturn relative to average drawdown | 0.21 | 4.43 | -4.22 |
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Drawdowns
XHB vs. XLRE - Drawdown Comparison
The maximum XHB drawdown since its inception was -81.61%, which is greater than XLRE's maximum drawdown of -38.83%. Use the drawdown chart below to compare losses from any high point for XHB and XLRE.
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Drawdown Indicators
| XHB | XLRE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -81.61% | -38.83% | -42.78% |
Max Drawdown (1Y)Largest decline over 1 year | -21.71% | -8.33% | -13.38% |
Max Drawdown (3Y)Largest decline over 3 years | -30.53% | -16.57% | -13.96% |
Max Drawdown (5Y)Largest decline over 5 years | -39.46% | -34.12% | -5.34% |
Max Drawdown (10Y)Largest decline over 10 years | -49.57% | -38.83% | -10.74% |
Current DrawdownCurrent decline from peak | -16.36% | -2.04% | -14.32% |
Average DrawdownAverage peak-to-trough decline | -27.48% | -9.48% | -18.00% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 11.08% | 2.85% | +8.23% |
Volatility
XHB vs. XLRE - Volatility Comparison
SPDR S&P Homebuilders ETF (XHB) has a higher volatility of 7.68% compared to Real Estate Select Sector SPDR Fund (XLRE) at 4.51%. This indicates that XHB's price experiences larger fluctuations and is considered to be riskier than XLRE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XHB | XLRE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.68% | 4.51% | +3.17% |
Volatility (6M)Calculated over the trailing 6-month period | 21.65% | 11.11% | +10.54% |
Volatility (1Y)Calculated over the trailing 1-year period | 28.26% | 14.22% | +14.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 28.00% | 19.18% | +8.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 27.59% | 20.46% | +7.13% |
XHB vs. XLRE - Expense Ratio Comparison
XHB has a 0.35% expense ratio, which is higher than XLRE's 0.13% expense ratio.
Dividends
XHB vs. XLRE - Dividend Comparison
XHB's dividend yield for the trailing twelve months is around 0.63%, less than XLRE's 3.12% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
XLRE Real Estate Select Sector SPDR Fund | 3.12% | 3.45% | 3.43% | 3.31% | 3.70% | 2.61% | 3.15% | 3.06% | 3.78% | 3.25% | 4.22% | 1.09% |
Frequently Asked Questions
XHB and XLRE have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XHB has higher volatility (7.68%) compared to XLRE (4.51%). In terms of maximum drawdown, XHB dropped -81.61% vs XLRE's -38.83%.
On 10-year performance, XHB leads with 12.21% vs 6.35% for XLRE. On fees, XLRE is cheaper at 0.13% per year. On volatility, XLRE has been the lower-risk option at 4.51%. 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 12.21% return vs 6.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLRE is cheaper with a 0.13% expense ratio, compared with 0.35% for XHB.
XLRE has the higher dividend yield at 3.12%, compared with 0.63% for XHB.
XHB is categorized as Building & Construction, while XLRE is REIT. XHB tracks S&P Homebuilders Select Industry Index, while XLRE tracks Real Estate Select Sector Index. Their fees differ too: 0.35% for XHB and 0.13% for XLRE.
XLRE currently has the higher Sharpe Ratio (0.90 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.
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