Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the SPDR S&P Homebuilders ETF (NYSEMKT:XHB) has received a distressing two-star ranking.

With that in mind, let's take a closer look at SPDR S&P Homebuilders ETF and see what CAPS investors are saying about the ETF right now.

XHB facts


January 2006

Total Net Assets

$1.8 billion

Investment Approach

Provides investment results that correspond generally to the total return performance of the S&P Homebuilders Select Industry. The S&P Homebuilders Select Industry represents the homebuilding sub-industry portion of the S&P Total Markets Index.

Expense Ratio


1-Year / 3-Year / 5-Year Annual Returns

53.9% / 19.4% / 6.1%

Dividend Yield



iShares Dow Jones US Home Construction (NYSEMKT:ITB)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 56% of the 138 All-Star members who have rated XHB believe the ETF will underperform the S&P 500 going forward.

Just last week, one of those Fools, warrenout, succinctly summed up the XHB bear case for our community:

We need this industry to recover. It's a little ahead of itself, though, with all the upside priced in already. And there are too few jobs, and too few citizens who will become qualified to be first time home buyers.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.