XHB(XHB)
AI Look-Through Summary
AI GeneratedThe XHB ETF, managing approximately $1.5 billion in assets, demonstrates a distinct tilt toward the housing and building products ecosystem through its concentrated sector exposure. With Consumer Cyclical stocks accounting for 34.2% of the portfolio and Industrials representing 28.3%, the fund heavily favors companies directly involved in residential construction and home improvement rather than broader industrial diversification or financial services. This structural bias suggests that performance will be tightly correlated with housing market dynamics, interest rate environments affecting mortgage availability, and consumer discretionary spending on durable goods. The inclusion of only 1.1% Real Estate exposure further indicates a focus on the manufacturers and suppliers serving this sector rather than direct property ownership or REITs.
Top holdings concentration reveals significant weight in major industry players such as MOD, BLD, CARR, TT, MAS, OC, JCI, LII, DHI, and MTH, each commanding between 3.5% and 4.5% of total assets. This top-tier grouping implies a lack of deep diversification within the fund's largest positions; a significant portion of capital is exposed to the operational fortunes of just ten companies. Notably, seven of these top ten holdings are classified under Industrials or Consumer Cyclical, reinforcing the thematic nature of the vehicle while simultaneously increasing idiosyncratic risk if any single component faces regulatory headwinds or supply chain disruptions. The presence of MAS and OC without specific sector labels in the provided data further highlights potential classification nuances that may obscure pure sector weighting analysis for certain constituents.
Quantitatively, the fund's profile reflects a specialized rather than broad-market strategy, prioritizing exposure to cyclical growth drivers tied specifically to homebuilding activity over stability found in defensive sectors or large-cap technology firms. The heavy reliance on top-tier names means that portfolio volatility may mirror the earnings cycles of these specific manufacturers more closely than a diversified index would suggest. Investors analyzing this vehicle must weigh the potential for outperformance during housing boasts against the heightened sensitivity to economic downturns that typically impact consumer spending and construction volumes simultaneously across multiple holdings.
Generated by Qwen-32B from constituent-level data. Not investment advice. Updated: 2026-05-21 16:30:09.642129+00
🔍 Theme Alignment Audit
AI GeneratedPurity: 92/100The investment theme implied by the ticker XHB, widely recognized as a homebuilding ETF, aligns strongly with the provided portfolio composition. The top holdings are predominantly composed of major residential construction and real estate development firms such as D.R. Horton, Lennar, and PulteGroup, which directly serve the housing sector. While several positions lack explicit industry labels in the data provided, their inclusion within a fund named for homebuilding suggests they operate within the same value chain or are closely linked ancillary services rather than unrelated industries. The portfolio avoids significant exposure to sectors that would contradict a residential focus, maintaining a tight thematic boundary despite some holdings having ambiguous sector classifications in this specific dataset.
Sector coherence is high, with Consumer Cyclical and Industrials combining for over sixty percent of the total assets under management, reflecting the capital-intensive nature of housing development which requires both manufacturing inputs and construction services. The concentration risk appears manageable given that the top ten positions account for approximately thirty-eight percent of the fund, preventing any single entity from dominating performance while still ensuring deep exposure to industry leaders. This structure differentiates the vehicle from a broad market index by heavily weighting specific cyclical sectors tied to housing starts and interest rate sensitivity, rather than diversifying across technology or financial services. The minimal allocation to Real Estate further indicates that the fund targets the builders themselves rather than property owners, preserving its distinct identity as an equity play on construction activity.
AI analysis of holdings alignment vs fund theme. Not investment advice. Updated: 2026-05-20 13:00:18.7315+00
🏢 Sector Analysis
AI GeneratedThe sector allocation of XHB reveals a distinct strategic emphasis on cyclical growth and manufacturing activity, with Consumer Cyclical and Industrials collectively comprising over 62% of the portfolio. This heavy weighting suggests an investment thesis predicated on economic expansion, where demand for discretionary goods and industrial output is expected to outpace broader market averages. The presence of significant positions in companies like MOD within these sectors further indicates a focus on firms with substantial exposure to construction materials and infrastructure spending. Conversely, the minimal Real Estate allocation at 1.1% highlights an intentional avoidance of interest rate sensitivity often found in property-heavy funds, reinforcing a bias toward operational cash flows rather than asset appreciation driven by leverage or rental yields.
Concentration risk is notably elevated given that the top ten holdings account for nearly 40% of total assets under management, with individual positions such as MOD and BLD approaching single-digit percentages. This lack of diversification implies that portfolio performance will be highly correlated with the fortunes of specific large-cap industrials and cyclical retailers rather than broad sector trends. The dominance of Industrials in both the top five holdings list and overall sector weight underscores a factor tilt toward momentum and value characteristics often associated with heavy machinery, automotive parts, and home improvement retailers. Such a structure exposes the fund to heightened volatility during economic slowdowns or supply chain disruptions that specifically impact these concentrated industries, while potentially offering amplified returns if cyclical conditions strengthen relative to defensive sectors.
AI-generated sector analysis from constituent-level data. Not investment advice. Updated: 2026-05-22 05:32:27.925609+00
Flow Driver Analysis
2-Step CircleWhich larger ETFs share XHB's holdings — and mechanically drive its price through index rebalancing flows?
Approximately 100% of XHB's weight flows through these larger ETFs
| Driver ETF | AUM | Expense | Shared Stocks | Weight Overlap |
|---|---|---|---|---|
| SPTMSPTM | $12B | — | 32 | 93.9% |
| ESGVESGV | $11B | — | 19 | 65.9% |
| ONEOONEO | $25M | — | 20 | 64.4% |
| VCRVCR | $6B | — | 23 | 60.9% |
| VONVVONV | $18B | — | 16 | 55.2% |
94% of XHB's portfolio by weight is also held by SPTM, which commands 8× more assets under management. When SPTM receives inflows, it mechanically buys these shared stocks — dragging XHB's NAV along regardless of any thematic or sector catalyst. Combined, the top 5 overlapping ETFs control exposure to 100% ofXHB's weight.
Overlap computed from constituent-level holdings data across 5 ETFs. Price co-movement with driver ETFs is structural, not coincidental. Not investment advice.
ETF Look-Through Dashboard
Replaces $249/yr MorningstarPeer through the ETF wrapper to see exactly what you own. Every metric is computed from constituent-level data.
Weighted metrics calculated based on 96% of fund assets with available data.
Herfindahl-Hirschman Concentration Index
Morningstar-Style Box
Sector & Cap Explorer
ETF Fundamental Radar
Caution: 23% of fund weight scores below 4 — indicating weak profitability or deteriorating fundamentals.
Piotroski F-Score (Operational Health)
Score 0-9: Measures Profitability, Leverage, and Efficiency
Computed by rolling up individual stock Piotroski F-Scores, Altman Z-Scores, and Beneish M-Scores weighted by each constituent's allocation. Data that Vanguard and BlackRock don't surface.
Dividend Safety True-Up
DeterministicThe dividend-paying companies inside XHB collectively pay out 122% of their Free Cash Flow to maintain the current yield. Warning: constituent companies are paying out nearly all cash flow. A wave of dividend cuts may be imminent if earnings decline. Based on 69% of fund weight in dividend-paying stocks.
FCF Payout Ratio = Dividends Paid / Free Cash Flow, weighted by constituent allocation. Not investment advice.
Earnings vs. Price Decomposition
ProprietaryXHB is up 11.0% over the last 12 months. The underlying weighted earnings growth of its constituents is -19.3%. The remaining +30.3% of performance is driven by multiple expansion (P/E inflation) — prices rose faster than earnings grew.
Earnings growth = weighted average YoY EPS growth of all constituents (capped at ±500% to limit outlier distortion). Based on 100% of fund weight with earnings data. Not investment advice.
Value Creation Map
ROIC vs WACCWhat percentage of XHB's weight is allocated to companies that create economic value (ROIC > WACC) vs. destroy it?
Of XHB's analyzed weight, 49% is invested in companies earning more than their cost of capital — genuine value creators. The remaining 51% consists of companies whose ROIC falls below their WACC, effectively destroying shareholder value with every dollar invested.
ROIC-WACC spread for 97% of fund weight with available data. Not investment advice.
Passive Crowding Score
MODERATEHow much of each constituent's market cap is structurally locked in passive ETFs — a proxy for liquidity fragility during sell-offs.
XHB has a Passive Crowding Score of 32/100. On average, 9.5% of the market capitalization of XHB's underlying holdings is structurally locked in passive ETF vehicles. This indicates moderate passive ownership density. Index rebalances and ETF creation/redemption activity can amplify short-term volatility in the underlying holdings.
Passive $ = Σ(ETF AUM × holding weight) across all 10 tracked ETFs. Actual passive ownership is higher (includes mutual funds, pension funds). Not investment advice.
Under the Hood — Top 15 Constituents
| # | Ticker | Company | Weight | P/E | F-Score |
|---|---|---|---|---|---|
| 1 | MOD | MODINE MANUFACTURING CO | 4.42% | 123.4x | 8/9 |
| 2 | BLD | TOPBUILD CORP Industrials | 3.84% | 23.5x | 3/9 |
| 3 | OC | OWENS CORNING | 3.83% | — | 3/9 |
| 4 | MAS | MASCO CORP | 3.79% | 17.4x | 6/9 |
| 5 | CARR | CARRIER GLOBAL CORP Industrials | 3.76% | 42.6x | 3/9 |
| 6 | TT | TRANE TECHNOLOGIES PLC Industrials | 3.67% | 34.5x | 9/9 |
| 7 | WSM | WILLIAMS SONOMA INC Consumer Cyclical | 3.66% | 22.8x | 4/9 |
| 8 | DHI | DR HORTON INC Consumer Cyclical | 3.58% | 13.8x | 3/9 |
| 9 | JCI | JOHNSON CONTROLS INTERNATION Industrials | 3.56% | 41.0x | 6/9 |
| 10 | MTH | MERITAGE HOMES CORP | 3.47% | 11.9x | 4/9 |
| 11 | TMHC | TAYLOR MORRISON HOME CORP | 3.44% | 8.7x | 4/9 |
| 12 | CVCO | CAVCO INDUSTRIES INC Consumer Cyclical | 3.42% | 22.4x | 5/9 |
| 13 | LII | LENNOX INTERNATIONAL INC Industrials | 3.35% | 22.3x | 5/9 |
| 14 | PHM | PULTEGROUP INC Consumer Cyclical | 3.34% | 11.4x | 5/9 |
| 15 | CSL | CARLISLE COS INC Industrials | 3.34% | 20.1x | 5/9 |
Historical Holdings Snapshots
Browse how XHB’s holdings have changed across SEC filing dates. Showing top holdings per snapshot.
2026-05-24
15 holdings · 54.5% tracked weight2026-05-23
15 holdings · 54.5% tracked weight2026-05-22
15 holdings · 54.9% tracked weight2026-05-21
15 holdings · 55.1% tracked weight2026-05-20
15 holdings · 55.2% tracked weight2026-05-19
15 holdings · 55.6% tracked weightSource: SEC filings and fund provider disclosures. Shows last 6 snapshot dates, top 15 holdings per date by weight.
Risk Profile
Sharpe = risk-adjusted return (higher is better). Computed from 1,200+ trading days with 5% risk-free rate.
Price Chart with Moving Averages
What Drove XHB Today?
Daily return attribution — which holdings contributed most (and least) to the fund's move.
Underwater (Drawdown from Peak)
How far below the all-time high the price has been over time. Deeper = more pain for holders.
Rolling 60-Day Beta vs S&P 500 (VOO)
How the ETF's sensitivity to market moves changes over time. β > 1 = more volatile than the market.
Yield & Income
Sector Drift Over Time
How XHB’s sector allocation has shifted across snapshots. Use the slider to travel through time.
Active Conviction Tracker
Shares bought and sold between the latest two data snapshots — reveals what the fund manager is actually doing.
Explore More
Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.
SecuritiesDB is for informational purposes only. Not investment advice.