XRT vs. XHB

Last updated Jun 14, 2026

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

Performance

XRT vs. XHB - Performance Comparison

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

Returns By Period

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

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%

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%

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

XRT vs. XHB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
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%

Correlation

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

XRT vs. XHB - Sectors Allocation Comparison

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

Return for Risk

XRT vs. XHB — Risk / Return Rank

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

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

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

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.

XRT vs. XHB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Retail ETF (XRT) and SPDR S&P Homebuilders ETF (XHB). 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.

	XRT	XHB	Difference
Sharpe ratio: Return per unit of total volatility	0.72	0.42	+0.30
Sortino ratio: Return per unit of downside risk	1.19	0.87	+0.32
Omega ratio: Gain probability vs. loss probability	1.13	1.09	+0.04
Calmar ratio: Return relative to maximum drawdown	1.09	0.55	+0.54
Martin ratio: Return relative to average drawdown	2.48	1.13	+1.35

XRT vs. XHB - Sharpe Ratio Comparison

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

XRT vs. XHB - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

XRT vs. XHB - Volatility Comparison

The current volatility for SPDR S&P Retail ETF (XRT) is 5.73%, while SPDR S&P Homebuilders ETF (XHB) has a volatility of 9.42%. This indicates that XRT experiences smaller price fluctuations and is considered to be less risky than XHB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

XRT vs. XHB - Expense Ratio Comparison

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

Dividends

XRT vs. XHB - Dividend Comparison

XRT's dividend yield for the trailing twelve months is around 0.79%, more than XHB's 0.60% 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 XRT and XHB in my portfolio?

XRT and XHB 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, XRT or XHB?

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

Which ETF is better, XRT or XHB?

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, XRT or XHB?

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, XRT or XHB?

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

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

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

What is the main difference between XRT and XHB?

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

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.