Real Estate (XLRE) vs Homebuilders (XHB)
XLRE (Real Estate Select Sector SPDR Fund, AUM $7.97 billion) tracks income-producing REITs (data centers, industrial, residential, retail, office). XHB (SPDR S&P Homebuilders ETF, equal-weighted, AUM $1.58 billion) tracks new construction names (homebuilders, building products).
Also known as: Real Estate (XLRE) (ETF_XLRE, real estate, REITs) · Homebuilders (XHB) (ETF_XHB, homebuilders)
Why This Comparison Matters
XLRE (Real Estate Select Sector SPDR Fund, AUM $7.97 billion) tracks income-producing REITs (data centers, industrial, residential, retail, office). XHB (SPDR S&P Homebuilders ETF, equal-weighted, AUM $1.58 billion) tracks new construction names (homebuilders, building products). April 2026: XLRE $44.48 (near 52-week highs); XHB $109.44 (near 52-week highs). Both rallying but with different drivers. XLRE through data center REIT subsector (EQIX, DLR ~18 percent); XHB through housing resilience + structural shortage. Both face mortgage rate sensitivity but XHB more directly. XLRE has bond-proxy element + AI capex tailwind. XHB has cyclical housing exposure + structural shortage tailwind.
The April 2026 Configuration
XLRE $44.48 (April 18 2026, 52-week range $39.11-$44.56). XHB $109.44 (April 23 2026, day range $107.76-$110.05). XLRE/XHB ratio approximately 0.41.
XLRE composition: data centers ~18% (EQIX, DLR); industrial ~12% (PLD); residential ~15%; retail ~18%; office ~5%; specialty/cell-tower ~12%; self-storage ~8%; healthcare ~8%.
XHB composition: pure builders ~30% (DHI, LEN, NVR, PHM); building products ~35% (TopBuild, Owens Corning); housing retail ~15% (HD, LOW); HVAC ~12%; furniture/appliances ~8%.
April 2026: both rallying. XLRE on data center subsector + AI capex. XHB on housing resilience + structural shortage. Different mechanisms but both elevated.
Existing Property vs New Construction
XLRE = income-producing existing properties. Cap rate-driven valuation. Rent growth + occupancy fundamentals. Long-duration cash flows.
XHB = new construction. Volume + margin-driven. Mortgage affordability fundamentals. Cyclical earnings.
Mortgage rate sensitivity differs. XHB direct affordability impact (-12-18% per 100bp 10Y rise). XLRE indirect cap rate impact (-8-12% per 100bp 10Y rise).
April 2026: both elevated despite mortgage rate 5.98-6.22%. XLRE benefits from data center subsector growth offsetting duration. XHB benefits from structural shortage (4-5M unit deficit) + builder margin resilience.
How XLRE and XHB Diverge
XLRE > XHB: existing-property strength dominant. Data center growth + bond proxy.
XHB > XLRE: new-construction strength dominant. Falling mortgage rates + housing recovery. 2009-2014 prototype.
Both rally: housing cycle + AI data center (current 2024-2026).
Both fall: housing crisis (2008) or recession.
Long-run correlation 0.45-0.65 (positive but moderate). Different exposures within housing complex.
How the Pair Performs Through Cycles
Conditional Forward Response (Tail Events)
How Homebuilders (XHB) has historically behaved in the 5 sessions following a top-decile or bottom-decile daily move in Real Estate (XLRE). Computed from 1,286 aligned daily observations ending .
Following these triggers, Homebuilders (XHB) falls 0.35% on average over the next 5 sessions, versus an unconditional baseline of +0.19%. 129 qualifying events; Homebuilders (XHB) closed positive in 44% of them.
90-Day Statistics
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Frequently Asked Questions
What are XLRE and XHB?+
XLRE (Real Estate Select Sector SPDR Fund, AUM $7.97 billion) tracks income-producing REITs. April 2026 composition: data centers ~18% (EQIX, DLR), industrial ~12% (PLD), residential ~15%, retail ~18%, office ~5%, specialty/cell-tower ~12%, self-storage ~8%, healthcare ~8%. XHB (SPDR S&P Homebuilders ETF, equal-weighted, AUM $1.58 billion) tracks new construction names. April 2026 composition: pure builders ~30% (DHI, LEN, NVR, PHM), building products ~35% (TopBuild, OC), housing retail ~15% (HD, LOW), HVAC ~12%, furniture/appliances ~8%. April 2026: XLRE $44.48; XHB $109.44; XLRE/XHB ratio ~0.41.
How do existing property and new construction differ?+
XLRE = income-producing existing properties. Cap rate-driven valuation. Rent growth + occupancy fundamentals. Long-duration cash flows. XHB = new construction. Volume + margin-driven. Mortgage affordability fundamentals. Cyclical earnings. Mortgage rate sensitivity differs. XHB direct affordability impact (-12-18% per 100bp 10Y rise). XLRE indirect cap rate impact (-8-12% per 100bp 10Y rise). April 2026: both elevated despite mortgage rate 5.98-6.22%. XLRE benefits from data center subsector growth offsetting duration. XHB benefits from structural shortage (4-5M unit deficit) + builder margin resilience.
How do XLRE and XHB diverge?+
XLRE > XHB: existing-property strength dominant. Data center growth + bond proxy. XHB > XLRE: new-construction strength dominant. Falling mortgage rates + housing recovery. 2009-2014 prototype. Both rally: housing cycle + AI data center (current 2024-2026). Both fall: housing crisis (2008) or recession. Long-run correlation 0.45-0.65 (positive but moderate). Different exposures within housing complex.
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