Is SPDR S&P Homebuilders ETF (XHB) a Strong ETF Right Now?

Core Insights - The SPDR S&P Homebuilders ETF (XHB) debuted on January 31, 2006, and provides broad exposure to the Industrials ETFs category [1] - XHB is managed by State Street Investment Management and has accumulated over $1.71 billion in assets, making it one of the larger ETFs in the Industrials sector [5] - The fund seeks to match the performance of the S&P Homebuilders Select Industry Index, which represents the homebuilding sub-industry of the S&P Total Markets Index [6] Fund Characteristics - XHB has an annual operating expense ratio of 0.35%, positioning it as one of the least expensive options in its category [7] - The fund's 12-month trailing dividend yield is 0.74% [7] - The ETF has a significant allocation in the Consumer Discretionary sector, approximately 67% of the portfolio, with Industrials and Energy following [8] Holdings and Performance - Allegion Plc (ALLE) constitutes about 3.73% of total assets, with the top 10 holdings making up approximately 35.44% of XHB's total assets [9] - As of October 27, 2025, XHB has gained about 4.73% year-to-date but is down approximately 7.23% over the past year [11] - The fund has a beta of 1.29 and a standard deviation of 26.07% over the trailing three-year period, indicating a higher risk profile [11] Alternatives - For investors seeking to outperform the Industrials ETFs segment, alternatives such as the Invesco Building & Construction ETF (PKB) are available, which tracks the Dynamic Building & Construction Intellidex Index and has $307.49 million in assets [12] - PKB has a higher expense ratio of 0.57% compared to XHB [12] - Traditional market cap weighted ETFs may offer cheaper and lower-risk options for matching returns in the Industrials ETFs space [13]