XHB vs. XRT

Last updated Jun 14, 2026

XHB (SPDR S&P Homebuilders ETF) and XRT (SPDR S&P Retail ETF) are both exchange-traded funds - XHB is a Building & Construction fund tracking the S&P Homebuilders Select Industry Index, while XRT is a Consumer Discretionary Equities fund tracking the S&P Retail Select Industry. Both are passively managed. Over the past 10 years, XHB returned 13.53%/yr vs 9.52%/yr for XRT. A 0.73 correlation means they provide meaningful diversification when combined. Both charge a 0.35% expense ratio.

Performance

XHB vs. XRT - Performance Comparison

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

Returns By Period

In the year-to-date period, XHB achieves a 4.66% return, which is significantly higher than XRT's 3.14% return. Over the past 10 years, XHB has outperformed XRT with an annualized return of 13.53%, while XRT has yielded a comparatively lower 9.52% 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%

XRT

• 1D: 0.07%
• 1M: 9.14%
• YTD: 3.14%
• 6M: 0.29%
• 1Y: 17.43%
• 3Y*: 12.80%
• 5Y*: -0.36%
• 10Y*: 9.52%

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

XHB vs. XRT - 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%
XRT SPDR S&P Retail ETF	3.14%	8.07%	11.78%	21.53%	-31.64%	42.60%	41.91%	14.12%	-8.04%	4.22%

Correlation

The correlation between XHB and XRT is 0.73, 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	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.75
Correlation (10Y) Calculated over the trailing 10-year period	0.72
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.73

The correlation between XHB and XRT has been stable across timeframes, ranging from 0.71 to 0.75 - a consistent structural relationship.

XHB vs. XRT - Sectors Allocation Comparison

Sectors	XHB	XRT
Consumer Cyclical	60.5%	76.5%
Industrials	38.4%	-
Real Estate	1.1%	-
Basic Materials	-	-
Communication Services	-	1.5%
Consumer Defensive	-	19.2%
Energy	-	1.3%
Financial Services	-	-
Healthcare	-	1.3%
Technology	-	1.4%
Utilities	-	-

Return for Risk

XHB vs. XRT — Risk / Return Rank

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

XHB

XHB Risk / Return Rank: 17
XHB Sharpe Ratio Rank: 17
XHB Sortino Ratio Rank: 18
XHB Omega Ratio Rank: 17
XHB Calmar Ratio Rank: 17
XHB Martin Ratio Rank: 15

XRT

XRT Risk / Return Rank: 23
XRT Sharpe Ratio Rank: 23
XRT Sortino Ratio Rank: 24
XRT Omega Ratio Rank: 22
XRT Calmar Ratio Rank: 26
XRT Martin Ratio Rank: 22

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. XRT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Homebuilders ETF (XHB) and SPDR S&P Retail ETF (XRT). 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	XRT	Difference
Sharpe ratio: Return per unit of total volatility	0.42	0.72	-0.30
Sortino ratio: Return per unit of downside risk	0.87	1.19	-0.32
Omega ratio: Gain probability vs. loss probability	1.09	1.13	-0.04
Calmar ratio: Return relative to maximum drawdown	0.55	1.09	-0.54
Martin ratio: Return relative to average drawdown	1.13	2.48	-1.35

XHB vs. XRT - Sharpe Ratio Comparison

The current XHB Sharpe Ratio is 0.42, which is lower than the XRT Sharpe Ratio of 0.72. The chart below compares the historical Sharpe Ratios of XHB and XRT, 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. XRT - Drawdown Comparison

The maximum XHB drawdown since its inception was -81.61%, which is greater than XRT's maximum drawdown of -65.81%. Use the drawdown chart below to compare losses from any high point for XHB and XRT.

Drawdown Indicators

	XHB	XRT	Difference
Max Drawdown Largest peak-to-trough decline	-81.61%	-65.81%	-15.80%
Max Drawdown (1Y) Largest decline over 1 year	-21.71%	-13.53%	-8.18%
Max Drawdown (3Y) Largest decline over 3 years	-30.53%	-25.62%	-4.91%
Max Drawdown (5Y) Largest decline over 5 years	-39.46%	-44.57%	+5.11%
Max Drawdown (10Y) Largest decline over 10 years	-49.57%	-47.02%	-2.55%
Current Drawdown Current decline from peak	-13.34%	-9.32%	-4.02%
Average Drawdown Average peak-to-trough decline	-27.58%	-14.99%	-12.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.51%	5.92%	+4.59%

Volatility

XHB vs. XRT - Volatility Comparison

SPDR S&P Homebuilders ETF (XHB) has a higher volatility of 9.42% compared to SPDR S&P Retail ETF (XRT) at 5.73%. This indicates that XHB's price experiences larger fluctuations and is considered to be riskier than XRT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XHB	XRT	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.42%	5.73%	+3.69%
Volatility (6M) Calculated over the trailing 6-month period	20.63%	13.90%	+6.73%
Volatility (1Y) Calculated over the trailing 1-year period	28.30%	20.59%	+7.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.77%	26.91%	+0.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.47%	27.17%	+0.30%

XHB vs. XRT - Expense Ratio Comparison

Both XHB and XRT have an expense ratio of 0.35%.

Dividends

XHB vs. XRT - Dividend Comparison

XHB's dividend yield for the trailing twelve months is around 0.60%, less than XRT's 0.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
XRT SPDR S&P Retail ETF	0.79%	0.77%	1.52%	1.40%	2.15%	1.55%	1.01%	1.57%	1.51%	1.52%	1.36%	1.30%

Frequently Asked Questions

Can I hold both XHB and XRT in my portfolio?

XHB and XRT have a correlation of 0.73, 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 XRT?

XHB has higher volatility (9.42%) compared to XRT (5.73%). In terms of maximum drawdown, XHB dropped -81.61% vs XRT's -65.81%.

Which ETF is better, XHB or XRT?

On 10-year performance, XHB leads with 13.53% vs 9.52% for XRT. Both ETFs have the same 0.35% expense ratio. On volatility, XRT has been the lower-risk option at 5.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XHB or XRT?

Over the 10-year period, XHB has performed better with a 13.53% return vs 9.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XHB or XRT?

XHB and XRT have the same expense ratio: 0.35% per year.

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

XRT has the higher dividend yield at 0.79%, compared with 0.60% for XHB.

What is the main difference between XHB and XRT?

XHB is categorized as Building & Construction, while XRT is Consumer Discretionary Equities. XHB tracks S&P Homebuilders Select Industry Index, while XRT tracks S&P Retail Select Industry.

Which has better risk-adjusted returns?

XRT currently has the higher Sharpe Ratio (0.72 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.