What Is XHB? SPDR S&P Homebuilders ETF
Short answer
XHB is the SPDR S&P Homebuilders ETF, a roughly equal-weight fund covering the U.S. housing value chain rather than just pure builders: it pairs homebuilders such as D.R. Horton, Lennar, and PulteGroup with building-products suppliers like Builders FirstSource and with home-improvement and furnishings retailers like Home Depot and Williams-Sonoma. Because it is equal weighted, the largest builders are not dominant positions, and the fund is a broad, rate-sensitive way to play housing demand and residential construction activity. It is more diversified across suppliers and retailers than ITB, which is a purer, more builder-concentrated homebuilders ETF. XHB carries a 0.35 percent expense ratio and has traded since 2006.
XHB is issued by State Street SPDR and tracks S&P Homebuilders Select Industry Index. It charges a 0.35% expense ratio, holds approximately ~$1.5 billion in assets under management, yields about ~0.6%, and launched in January 31, 2006.
What is XHB?
XHB is the SPDR S&P Homebuilders ETF, a roughly equal-weight fund covering the U.S. housing value chain rather than just pure builders: it pairs homebuilders such as D.R. Horton, Lennar, and PulteGroup with building-products suppliers like Builders FirstSource and with home-improvement and furnishings retailers like Home Depot and Williams-Sonoma. Because it is equal weighted, the largest builders are not dominant positions, and the fund is a broad, rate-sensitive way to play housing demand and residential construction activity. It is more diversified across suppliers and retailers than ITB, which is a purer, more builder-concentrated homebuilders ETF. XHB carries a 0.35 percent expense ratio and has traded since 2006.
XHB is issued by State Street SPDR and tracks S&P Homebuilders Select Industry Index, so a single ticker gives you the whole basket of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
XHB holdings: what's actually inside
XHB is weighted toward its largest constituents. As of early 2026, the top holdings are:
| Rank | Ticker | Company | % of XHB | |
|---|---|---|---|---|
| 1 | WMS | Advanced Drainage Systems, Inc. | ~3.6% | |
| 2 | BLDR | Builders FirstSource, Inc. | ~3.5% | |
| 3 | CSL | Carlisle Companies Incorporated | ~3.5% | |
| 4 | OC | Owens Corning | ~3.5% | |
| 5 | MTH | Meritage Homes Corporation | ~3.5% | |
| 6 | TOL | Toll Brothers, Inc. | ~3.4% | |
| 7 | KBH | KB Home | ~3.4% | |
| 8 | WSM | Williams-Sonoma, Inc. | ~3.4% | |
| 9 | PHM | PulteGroup, Inc. | ~3.4% | |
| 10 | DHI | D.R. Horton, Inc. | ~3.4% |
The remaining holdings make up the balance of the fund, with weights tapering off below the top names. Because the index reconstitutes on a rolling basis, the roster stays current without active management. Each ticker above links to its individual stock guide in Walnut.
The bottom line on XHB
XHB offers diversified, roughly equal-weight exposure to the full U.S. housing value chain, builders plus suppliers and retailers, making it less concentrated in pure homebuilders than alternatives like ITB. As a housing-sector fund it is highly sensitive to interest rates and mortgage costs, so it tends to swing sharply with the rate cycle and housing-demand expectations.
More on XHB
Whether XHB is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is XHB a buy?
XHB yields ~0.6% as of early 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see XHB dividend: yield and schedule.
Build a portfolio around XHB with Walnut
Use XHB as your core holding, then let Walnut's AI propose thematic satellites: AI infrastructure, dividend growth, clean energy, whatever you believe in. Connect your broker, build the basket in conversation, track it as one unit.
FAQ
What is XHB?
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XHB is the SPDR S&P Homebuilders ETF, run by State Street under its SPDR brand. It tracks the S&P Homebuilders Select Industry Index, a roughly equal-weight benchmark covering U.S. homebuilders, building-products suppliers, and home-improvement and furnishings retailers. It launched in 2006 and is a broad way to invest in the U.S. housing sector.
What is XHB's expense ratio?
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XHB has an expense ratio of 0.35 percent, meaning about 35 dollars per year on a 10,000 dollar investment. That is a typical cost for a sector-specific equity ETF, higher than a broad index fund but in line with other thematic and industry funds.
XHB vs ITB: what is the difference?
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Both are homebuilder ETFs, but XHB is roughly equal weighted and spreads across the broader housing value chain, including suppliers and retailers, so no single builder dominates. ITB (iShares U.S. Home Construction ETF) is market-cap weighted and more concentrated in the largest pure homebuilders. XHB is more diversified; ITB is a purer builder bet.
What does XHB hold?
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XHB holds roughly three to four dozen companies tied to housing, each at about 3 percent of the fund. Holdings include homebuilders such as D.R. Horton, Lennar, PulteGroup, Toll Brothers, KB Home, and Meritage Homes, plus suppliers like Builders FirstSource, Owens Corning, and Carlisle, and retailers like Home Depot and Williams-Sonoma.
Does XHB pay a dividend?
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Yes, XHB pays a dividend, typically distributed quarterly, but the yield is modest at roughly 0.6 percent. Homebuilders and many building-products companies retain most of their earnings for growth, so XHB is held mainly for sector exposure and price appreciation rather than income.
Is XHB a good investment?
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Whether XHB fits depends on your goals, risk tolerance, and view on housing. It gives diversified, equal-weight exposure to the U.S. housing value chain but is concentrated in one cyclical sector and swings with interest rates. Walnut is informational, not investment advice, so consider how it fits your overall portfolio.
Is XHB sensitive to interest rates?
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Yes, very. Housing demand depends heavily on mortgage rates, and homebuilders, suppliers, and home-improvement retailers all tend to move with the rate cycle. Rising rates can pressure affordability and home sales, weighing on XHB, while falling rates often boost the sector. Expect XHB to be more volatile than a broad market index.
Why does XHB hold suppliers and retailers, not just builders?
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XHB tracks the S&P Homebuilders Select Industry Index, which is defined broadly to cover the whole residential value chain. Because it is roughly equal weighted, building-products makers (insulation, drainage, roofing), distributors like Builders FirstSource, and home retailers like Home Depot and Williams-Sonoma make up a large share alongside the actual homebuilders.
How do I compare XHB to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. XHB's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to early 2026; verify current figures against State Street SPDR's fund page or your broker before investing.