Should You Invest in the State Street SPDR S&P Homebuilders ETF (XHB)?

Core Viewpoint - The State Street SPDR S&P Homebuilders ETF (XHB) offers broad exposure to the Industrials - Engineering and Construction segment, appealing to both institutional and retail investors due to its low cost and transparency [1][2]. Group 1: ETF Overview - XHB is a passively managed ETF launched on January 31, 2006, with assets exceeding $1.66 billion, making it one of the larger ETFs in its category [1][3]. - The ETF aims 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 [3][4]. Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.35%, positioning it as one of the least expensive options in the market, with a 12-month trailing dividend yield of 0.77% [5]. - Year-to-date, the ETF has increased by approximately 0.39% but has decreased by about 0.64% over the past year, trading between $86.79 and $119.58 in the last 52 weeks [8]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation of about 67.1% in the Consumer Discretionary sector, followed by Industrials [6]. - Champion Homes Inc (SKY) constitutes around 4.1% of total assets, with the top 10 holdings making up approximately 36.92% of total assets under management [7]. Group 4: Risk Assessment - The ETF has a beta of 1.31 and a standard deviation of 25.29% over the trailing three-year period, indicating a higher risk profile compared to its peers [8].