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XHB - ETF AI Analysis

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XHB

SPDR S&P Homebuilders ETF (XHB)

Rating:69Neutral
Price Target:
XHB, the SPDR S&P Homebuilders ETF, has a solid overall rating that reflects generally strong underlying companies but also some clear risks. Higher-quality holdings like Williams-Sonoma, NVR, Trane Technologies, and Johnson Controls support the fund with strong financial performance, good profitability, and positive strategic initiatives, while weaker names such as Owens Corning and Masco, which face declining revenues, bearish trading trends, and higher leverage, weigh on the rating. The main risk factor is the fund’s focus on homebuilding and related industries, which can make it sensitive to housing-market cycles and broader economic slowdowns.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered solid gains so far this year, indicating favorable conditions for its homebuilding and related holdings.
Many Top Holdings Showing Strong Momentum
Most of the largest positions, such as Modine, Trane Technologies, and Installed Building Products, have posted strong year-to-date performance, helping support the fund’s returns.
Focused but Still Multi-Sector Exposure
While the fund is centered on consumer cyclical companies tied to housing, it also includes meaningful industrial exposure, adding some variety within the homebuilding theme.
Negative Factors
High Exposure to a Single Country
Almost all assets are invested in U.S. companies, so the fund is heavily dependent on the health of the U.S. economy and housing market.
Concentrated in One Economic Theme
With most of the portfolio tied to homebuilding and housing-related businesses, the ETF can be sensitive to downturns in the housing cycle, interest rates, or consumer spending.
Some Top Holdings Are Lagging
A few key positions, such as NVR and Somnigroup International, have shown weak year-to-date performance, which can drag on overall returns if the softness continues.

XHB vs. SPDR S&P 500 ETF (SPY)

XHB Summary

The SPDR S&P Homebuilders ETF (XHB) is a fund that follows the S&P Homebuilders Select Industry Index, focusing on the U.S. housing theme. It holds companies tied to homebuilding and housing, including home construction, building materials, and home furnishings and improvement. Well-known names in the fund include DR Horton and Williams-Sonoma. Someone might invest in XHB if they believe the housing market will grow and want a simple way to spread their money across many housing-related companies. A key risk is that it can rise or fall sharply with the housing market and the overall economy.
How much will it cost me?The SPDR S&P Homebuilders ETF (XHB) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is a sector-focused fund that requires more active management to track the housing industry closely.
What would affect this ETF?The SPDR S&P Homebuilders ETF (XHB) could benefit from strong consumer confidence, low interest rates, and demographic trends driving demand for housing and home improvement. However, rising interest rates, economic slowdowns, or regulatory changes affecting construction and real estate could negatively impact the ETF's performance. Its focus on U.S. housing-related sectors like consumer cyclical and industrials makes it sensitive to shifts in economic conditions and housing market dynamics.

XHB Top 10 Holdings

XHB is a pure U.S. housing play, with most of its muscle coming from building products and construction names rather than flashy homebuilders. Modine has been a standout, rising steadily and giving the fund a strong tailwind, while Trane and Installed Building Products are also pulling their weight with solid, if calmer, gains. TopBuild and DR Horton are more mixed, helping but not leading the charge. On the weaker side, NVR and Somnigroup are lagging, acting like sandbags on an otherwise cyclical, consumer-focused portfolio.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Modine4.00%$64.34M$13.27B204.02%
68
Neutral
TopBuild3.80%$61.23M$12.71B50.27%
68
Neutral
Masco3.78%$60.86M$14.96B22.75%
53
Neutral
Owens Corning3.73%$60.02M$10.10B-12.81%
52
Neutral
Trane Technologies3.58%$57.67M$107.66B38.31%
70
Outperform
DR Horton3.57%$57.46M$45.34B27.29%
66
Neutral
Installed Building Products3.43%$55.16M$8.16B77.86%
74
Outperform
Taylor Morrison3.38%$54.44M$5.91B9.95%
78
Outperform
Cavco Industries3.37%$54.34M$4.19B9.92%
81
Outperform
Meritage3.37%$54.29M$4.61B3.01%
69
Neutral

XHB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
104.90
Positive
100DMA
107.66
Negative
200DMA
108.02
Negative
Market Momentum
MACD
0.85
Positive
RSI
49.69
Neutral
STOCH
14.80
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XHB, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 105.29, equal to the 50-day MA of 104.90, and equal to the 200-day MA of 108.02, indicating a neutral trend. The MACD of 0.85 indicates Positive momentum. The RSI at 49.69 is Neutral, neither overbought nor oversold. The STOCH value of 14.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for XHB.

XHB Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.53B0.35%
69
Neutral
$8.06B0.57%
75
Outperform
$5.17B0.49%
72
Outperform
$4.04B0.30%
68
Neutral
$3.67B0.65%
69
Neutral
$2.70B0.38%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XHB
SPDR S&P Homebuilders ETF
105.09
9.17
9.56%
THRO
Ishares U.S. Thematic Rotation Active Etf
FDN
First Trust Dow Jones Internet Index Fund
IFRA
iShares U.S. Infrastructure ETF
JTEK
JPMorgan U.S. Tech Leaders ETF
ITB
iShares U.S. Home Construction ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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