# How D.R. Horton (DHI) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/dhi
> Data as of October 20, 2026. Total returns include reinvested dividends. Past performance does not predict future results; nothing here is investment advice.

Built by QuantCommons' quantitative engine, this page is about relative opportunity, not data on DHI alone. It places DHI (D.R. Horton, Inc.) against 17 popular alternatives, its neighboring categories and the entire market of over 10,000 U.S.-listed stocks and ETFs, and surfaces what has done better on consistent outperformance, return for the risk taken, behavior in real market crashes and diversification. The result is a clearer view of where DHI stands in the market, and of the alternatives worth a closer look.

Period covered: DHI's full trading record, from June 1992 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** The slide is DHI's own: it is 27.2% below its high, against 1.3% for the S&P 500. Over the past 6 months, DHI fell 8.0% while the S&P 500 rose 9.1%.
- **Stock or market?:** DHI fell 2.9% over the past 3 months, 4.8 points ahead of the homebuilders ETF ITB (iShares U.S. Home Construction ETF), which fell 7.7%. The S&P 500 rose 3.9%. Its homebuilder peers did not move as one over the past 3 months: BZH (Beazer Homes USA) rose 3.0%, while NVR fell 7.3%.
- **Past 1 to 3 years:** DHI has gone against the market, falling 7.7% over the past year while the S&P 500 rose 15.8%. The same gap shows up over 3 years (43.7% against 89.3%). The long record (ahead of 83% of the stocks worth at least $300 million over 10 years) has not carried into the past 3 years (behind 55% of them).
- **Long term:** DHI turned $10,000 into $53,400 over the past decade, against $42,100 in the S&P 500. On the flip side, the past 5 years only trailed the S&P 500 (65.0% against 81.7%), after a much stronger decade (434% against 321%).
- **In a crash:** Across seven sell-offs, DHI has typically fallen 1.5 times as far as the S&P 500. In the Covid crash, DHI fell 53.6%, against 33.7% for the S&P 500. That was more than NVR (46.1%) but less than PHM (PulteGroup, 61.9%).
- **Diversification:** Against the S&P 500, DHI has a correlation of 0.58 over 5 years, more closely than 87% of stocks worth at least $300 million. Next to an index fund it is some diversification, but not a hedge. When the S&P 500 had a down month, DHI usually fell with it (17 of 22 months).
- **Better options**
  - **Nearby categories and themes:** TT (Trane Technologies, building products) and TJX (TJX Companies, specialty retail) earned more than DHI with less volatility over the past 5 years. TT returned 22.7% a year at 27.7% volatility, against 10.5% a year at 35.9%.
  - **Whole market:** 584 of the 3,633 stocks and funds worth at least $500 million earned more than DHI with less volatility over the past 5 years, among them AAPL (Apple), GOOG (Alphabet) and MSFT (Microsoft).

## How much would $10,000 in DHI have grown?

This chart tracks a hypothetical $10,000 investment in DHI over the past 29 years, with dividends reinvested, alongside the same amount in the S&P 500, investments that ended ahead of DHI over the same span and DHI's popular alternatives, among those that traded for the entire period.

- $10,000 invested in DHI at the end of September 1997 would have grown to $445,083 by September 2026, more than the $132,907 it would have become in SPY, an S&P 500 fund.
- Five of the eight other investments on the chart ended ahead of DHI, and NVR finished highest, at $2,366,940.

## DHI at a glance

This section summarizes the key facts about the stock, its returns over periods from one to ten years and the risk it has carried, with dividends reinvested throughout.

- DHI is still 27.2% below its all-time high.
- DHI's deepest decline since it began trading in 1992 was 88.9%, from July 2005 to November 2008. It took about nine years from the low to climb back to its old high.
- Over 29 full calendar years, DHI's best was 2003, when it returned 152%, and its worst was 2007, when it lost 48.6%. It lost money in nine of those years.

- Type: Stock, Consumer Discretionary (Residential Construction)
- Trading since: June 5, 1992
- Market value: $39B
- Volatility (5 years): 35.9%; Sharpe ratio: 0.46
- Worst decline ever: −88.9%, from July 20, 2005 to November 21, 2008; back at its high by July 7, 2017

| Period | DHI total return |
| --- | --- |
| 1 month | +0.7% |
| 3 months | −2.9% |
| 6 months | −8.0% |
| year to date | −3.0% |
| 1 year | −7.7% |
| 3 years | +43.7% |
| 5 years | +65.0% |
| 10 years | +434% |

## DHI against the whole market

Where DHI ranks among every stock and fund, and what across the market has done better.

### How does DHI rank among all stocks?

This section ranks DHI on return, volatility, risk-adjusted return and worst decline against every stock worth at least $300 million with enough history.

- DHI's 10-year return ranks in the top 17% of the 2,202 stocks worth at least $300 million with 10 years of history.

| Measure | DHI | Rank |
| --- | --- | --- |
| 1-year return | −7.7% | 2,270 of 3,287 (top 70%) |
| 3-year return | +43.7% | 1,647 of 3,017 (top 55%) |
| 5-year return | +65.0% | 947 of 2,893 (top 33%) |
| 10-year return | +434% | 370 of 2,202 (top 17%) |
| Volatility, 5 years | 35.9% | 1,203 of 2,893 (top 42%) |
| Sharpe ratio, 5 years | 0.46 | 1,056 of 2,893 (top 37%) |
| Worst decline, past 10 years | −53.6% | 598 of 2,187 (top 28%) |

### What has beaten DHI on both return and risk?

Each dot is an investment, placed by how much it earned a year over the past 5 years (higher is better) and how much its price swung, its volatility (further left is calmer).

- 340 stocks and 244 ETFs worth at least $500 million sit in the green region: each earned more than DHI over the past 5 years with smaller price swings. That is 16% of the 3,633 screened.
- Among those with at least half DHI's swings, CAH has the best return for its risk: 42.1% a year at 24.7% volatility, 31% less than DHI's 35.9%, and a Sharpe ratio (return above cash per unit of volatility) of 1.55 against 0.46 for DHI. MPC earned the most, 51.2% a year, while still swinging less than DHI (33.4% against 35.9%).
- None of DHI's popular alternatives made it, but TJX (specialty retail) did: 19.9% a year at 22.3% volatility, 38% less than DHI's 35.9%.

### Is there a better investment than DHI?

The table below lists investments that beat DHI over the past 5 years on at least one of these measures: a higher annual return with lower volatility, a higher annual return at similar volatility, a similar return with lower volatility, a higher Sharpe ratio with a smaller worst decline, a higher total return in most periods from 3 months to 10 years, or smaller losses in recent market crashes.

- Among DHI's popular alternatives, PHM, TOL and MHO earned more than DHI over the past 5 years with similar volatility: PHM returned 19.1% a year at 35.0% volatility, against 10.5% a year at 35.9%.
- Looking beyond its popular alternatives, TT (building products) and TJX (specialty retail) earned more than DHI with less volatility over the past 5 years. TT returned 22.7% a year at 27.7% volatility, against 10.5% a year at 35.9%.
- Across the whole market, 584 of the 3,633 stocks and funds worth at least $500 million earned more than DHI with less volatility over the past 5 years, among them AAPL, GOOG and MSFT.

The 15 strongest of 584 investments that beat DHI over the past 5 years, out of 3,633 stocks and funds worth at least $500 million.

| Investment | Group | Annual return (5 years) | Volatility | Sharpe | Worst decline (10 years) | 10Y return | Correlation with DHI | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| DHI: D.R. Horton, Inc. (this page) |  | +10.5% | 35.9% | 0.46 | −53.6% | +434% |  |  |
| [GOOG](https://easycompare.io/research/goog): Alphabet Inc. | Internet Services | +19.0% | 32.0% | 0.71 | −44.6% | +752% | 0.23 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [MSFT](https://easycompare.io/research/msft): Microsoft Corporation | Software | +12.5% | 28.2% | 0.56 | −37.1% | +946% | 0.14 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [LLY](https://easycompare.io/research/lly): Eli Lilly and Company | Pharmaceuticals | +40.7% | 32.8% | 1.21 | −34.5% | +1,807% | 0.12 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [WMT](https://easycompare.io/research/wmt): Walmart Inc. | Discount Retail | +20.8% | 22.6% | 0.96 | −25.7% | +508% | 0.19 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [JPM](https://easycompare.io/research/jpm): JPMorgan Chase & Co. | Banks | +17.3% | 24.3% | 0.78 | −43.6% | +537% | 0.51 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [V](https://easycompare.io/research/v): Visa Inc. | Payment Processing | +12.8% | 22.9% | 0.64 | −36.4% | +429% | 0.31 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [COST](https://easycompare.io/research/cost): Costco Wholesale Corporation | Discount Retail | +17.4% | 22.9% | 0.82 | −31.4% | +685% | 0.31 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [MA](https://easycompare.io/research/ma): Mastercard Incorporated | Payment Processing | +12.4% | 23.8% | 0.61 | −41.0% | +541% | 0.40 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [APH](https://easycompare.io/research/aph): Amphenol Corporation | Electronic Components | +33.8% | 32.2% | 1.07 | −37.5% | +965% | 0.49 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [ADI](https://easycompare.io/research/adi): Analog Devices, Inc. | Semiconductors | +19.5% | 34.1% | 0.69 | −33.6% | +652% | 0.51 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [DE](https://easycompare.io/research/de): Deere & Company | Industrial Machinery | +14.4% | 29.9% | 0.60 | −37.9% | +755% | 0.32 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [RSG](https://easycompare.io/research/rsg): Republic Services, Inc. | Environmental Services | +13.9% | 18.5% | 0.80 | −34.0% | +446% | 0.30 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [RY](https://easycompare.io/research/ry): Royal Bank of Canada | Banks | +17.3% | 18.2% | 0.97 | −40.0% | +352% | 0.53 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| [MSI](https://easycompare.io/research/msi): Motorola Solutions, Inc. | Communications Equipment | +14.8% | 23.6% | 0.71 | −32.8% | +625% | 0.55 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [FAST](https://easycompare.io/research/fast): Fastenal Company | Industrial Distribution | +15.8% | 24.6% | 0.72 | −30.7% | +576% | 0.52 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |

## DHI against its popular alternatives

The investments people most often weigh against DHI, compared period by period and year by year.

### How do DHI's risk and return compare with its alternatives?

This map plots each investment's annual return over the past 5 years against its volatility, the size of its typical price swings.

- Only PHM was both more rewarding and calmer than DHI over the past 5 years, earning a higher annual return with lower volatility.
- Over the past 5 years, DHI returned 10.5% a year, less than the S&P 500's 12.7%, with higher volatility (35.9% against 17.1%).

### Has DHI consistently beaten its popular alternatives?

This section compares DHI with the investments people most often weigh against it, checking each one over eight periods from one month to ten years.

- Only one of the 17 popular alternatives, BZH, outperformed DHI in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- PHM outperformed DHI over all three long-term periods but in only one of the five short-term ones, so DHI has had the better of it lately.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of DHI | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| DHI: D.R. Horton, Inc. (this page) | −7.7% | +43.7% | +65.0% | +434% |  |  | 0.46 |
| BZH: Beazer Homes USA, Inc. | +43.9% | +48.3% | +87.7% | +193% | 4/5 short-term, 2/3 long-term | consistent | 0.50 |
| GRBK: Green Brick Partners, Inc. | −8.3% | +62.3% | +163% | +651% | 1/5 short-term, 3/3 long-term |  | 0.67 |
| PHM: PulteGroup, Inc. | −6.3% | +68.3% | +139% | +569% | 1/5 short-term, 3/3 long-term |  | 0.68 |
| IBP: Installed Building Products, Inc. | −26.3% | +78.6% | +79.1% | +524% | 0/5 short-term, 3/3 long-term |  | 0.49 |
| TOL: Toll Brothers, Inc. | +0.6% | +102% | +135% | +424% | 2/5 short-term, 2/3 long-term |  | 0.65 |
| MHO: M/I Homes, Inc. | −10.8% | +65.2% | +101% | +430% | 1/5 short-term, 2/3 long-term |  | 0.56 |
| MAS: Masco Corporation | +10.7% | +57.7% | +35.3% | +162% | 4/5 short-term, 1/3 long-term |  | 0.35 |
| LGIH: LGI Homes, Inc. | −5.4% | −50.8% | −70.6% | +33.9% | 3/5 short-term, 0/3 long-term |  | -0.24 |
| [HD](https://easycompare.io/research/hd): The Home Depot, Inc. | −16.7% | +18.8% | −0.2% | +217% | 1/5 short-term, 0/3 long-term |  | 0.12 |
| CCS: Century Communities, Inc. | −5.5% | −0.8% | −8.2% | +190% | 1/5 short-term, 0/3 long-term |  | 0.17 |
| LEN: Lennar Corporation | −36.1% | −20.2% | −16.5% | +112% | 1/5 short-term, 0/3 long-term |  | 0.07 |
| BLDR: Builders FirstSource, Inc. | −56.0% | −50.7% | −7.5% | +417% | 0/5 short-term, 0/3 long-term |  | 0.20 |
| MTH: Meritage Homes Corporation | −12.1% | +15.9% | +23.2% | +283% | 0/5 short-term, 0/3 long-term |  | 0.30 |
| NVR: NVR, Inc. | −22.2% | +8.9% | +18.3% | +279% | 0/5 short-term, 0/3 long-term |  | 0.26 |
| KBH: KB Home | −28.7% | +7.5% | +14.9% | +225% | 0/5 short-term, 0/3 long-term |  | 0.27 |
| HOV: Hovnanian Enterprises, Inc. | −25.5% | +37.5% | +4.6% | +136% | 0/5 short-term, 0/3 long-term |  | 0.34 |
| DFH: Dream Finders Homes, Inc. | −57.6% | −48.4% | −41.4% | — | 0/5 short-term, 0/3 long-term |  | 0.10 |

### How did DHI do year by year?

This table shows each investment's total return in every full calendar year since 1997, along with where DHI ranked among its popular alternatives each year.

- Ranked against its popular alternatives each year, DHI finished in the top quarter in six of 29 years and in the bottom quarter in three. In 2025, it ranked 5 of 18.
- DHI finished ahead of the S&P 500 in 19 of its 29 full calendar years, and behind it in each of the last two.
- Among its popular alternatives, IBP came out ahead of DHI most often, in seven of the 11 years both traded.

| Year | DHI | SPY |
| --- | --- | --- |
| 2025 | +4.2% | +17.7% |
| 2024 | −7.2% | +24.9% |
| 2023 | +72.1% | +26.2% |
| 2022 | −16.8% | −18.2% |
| 2021 | +58.7% | +28.7% |
| 2020 | +32.2% | +18.3% |
| 2019 | +54.3% | +31.2% |
| 2018 | −31.3% | −4.6% |
| 2017 | +89.0% | +21.7% |
| 2016 | −13.7% | +12.0% |

## Risk and diversification

How DHI has fallen, how it held up in crashes beside the S&P 500 and its popular alternatives, and what moves independently of it.

### What were DHI's worst declines?

A drawdown is the decline from a peak to the lowest point before a new high.

- In all five of DHI's worst declines, the S&P 500 held up better over the same dates.
- Not every decline was the market's doing: DHI fell 57.4% from July 1998 to October 1999, while the S&P 500 rose 12.4%.
- The slowest recovery came after DHI fell 88.9% from July 2005 to November 2008; it did not regain that peak until July 2017, nine years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −88.9% | July 20, 2005 | November 21, 2008 | July 7, 2017 | −31.5% | 2008 financial crisis |
| −57.4% | July 21, 1998 | October 21, 1999 | December 7, 2000 | +12.4% |  |
| −53.6% | February 20, 2020 | March 18, 2020 | July 16, 2020 | −28.8% | Covid crash |
| −51.2% | January 14, 1994 | December 28, 1994 | January 3, 1996 | −0.2% |  |
| −44.4% | December 10, 2021 | June 17, 2022 | April 24, 2023 | −21.4% | 2022 bear market |

### How did DHI do in stock market crashes?

This section measures how far DHI, the S&P 500 and each alternative fell from peak to trough during every major market crash since 2000.

- DHI fell further than the S&P 500 in seven of the ten crashes it has traded through. The clearest case was the Covid crash, when DHI fell 53.6% and the S&P 500 fell 33.7%.
- Among its popular alternatives, NVR held up best, falling less than DHI in eight of the ten crashes they both traded through.

| Crash | Dates | DHI fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −43.9% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −74.6% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −4.3% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −29.8% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −29.4% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −4.9% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −23.0% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −53.6% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −42.4% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −0.9% | −3.4% |

### How closely does DHI move with the S&P 500?

Upside capture measures how much of the S&P 500's gains an investment kept in the months the market rose, and downside capture how much of its losses it took in the months the market fell.

- Only PHM, GRBK and NVR had a higher capture ratio (upside capture divided by downside capture) than DHI's 0.90, out of 16 popular alternatives with the same record.
- PHM took just 130% of the S&P 500's losses, against 146% for DHI, while still keeping 132% of its gains.
- Over the past 10 years, DHI captured 132% of the S&P 500's gains in rising months and 146% of its losses in falling months, with a beta of 1.51. It amplified the market's moves in both directions.

Measured over the past 10 years of monthly returns against SPY.

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| DHI: D.R. Horton, Inc. (this page) | 132% | 146% | 1.51 |
| BZH: Beazer Homes USA, Inc. | 171% | 253% | 2.14 |
| GRBK: Green Brick Partners, Inc. | 160% | 168% | 1.58 |
| PHM: PulteGroup, Inc. | 132% | 130% | 1.31 |
| IBP: Installed Building Products, Inc. | 166% | 198% | 1.78 |
| TOL: Toll Brothers, Inc. | 131% | 145% | 1.45 |
| MHO: M/I Homes, Inc. | 153% | 176% | 1.85 |
| MAS: Masco Corporation | 111% | 158% | 1.30 |
| LGIH: LGI Homes, Inc. | 122% | 217% | 1.75 |
| [HD](https://easycompare.io/research/hd): The Home Depot, Inc. | 96.0% | 117% | 1.00 |
| CCS: Century Communities, Inc. | 130% | 176% | 1.64 |
| LEN: Lennar Corporation | 106% | 155% | 1.46 |
| BLDR: Builders FirstSource, Inc. | 163% | 203% | 1.90 |
| MTH: Meritage Homes Corporation | 124% | 149% | 1.54 |
| NVR: NVR, Inc. | 102% | 110% | 0.98 |
| KBH: KB Home | 128% | 168% | 1.58 |
| HOV: Hovnanian Enterprises, Inc. | 164% | 244% | 2.28 |

### What diversifies DHI?

Correlation measures how closely two investments move together, on a scale from 1 (in lockstep) through 0 (unrelated) to -1 (in opposite directions).

- Moving a fifth of the money in DHI into DXJ would have cut the portfolio's volatility by 18% over the past 5 years and raised its annual return (+11.4% for DHI alone, +15.5% for the mix).
- Among large ETFs, LVHI, DXJ and GCOW have moved largely independently of DHI over the past 5 years, with correlations of 0.49 or lower, and each still earned a positive 5-year return.
- FIX made money in six of the nine calendar years in which DHI lost money.

| Investment | Correlation with DHI | 5Y return | Volatility | Sharpe | Rose in DHI's 9 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.48 | +119% | 11.1% | 1.48 | 2 of 9 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.23 | +225% | 19.1% | 1.34 | 3 of 9 |
| GCOW: Pacer Global Cash Cows Dividend ETF | 0.49 | +93.4% | 13.6% | 1.04 | 2 of 9 |
| EMLP: First Trust North American Energy Infrastructure Fund | 0.47 | +101% | 14.5% | 1.04 | 3 of 9 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.43 | +323% | 36.9% | 0.97 | 3 of 9 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.21 | +126% | 18.9% | 0.96 | 5 of 9 |
| IOO: iShares Global 100 ETF | 0.48 | +107% | 17.2% | 0.94 | 4 of 9 |
| SPMO: Invesco S&P 500 Momentum ETF | 0.46 | +136% | 20.8% | 0.93 | 2 of 9 |

## Common questions

### What was DHI's worst drawdown?

DHI's deepest decline since it began trading in 1992 was 88.9%, from July 2005 to November 2008. It took about nine years from the low to climb back to its old high.

### What were DHI's best and worst years?

Over 29 full calendar years, DHI's best year was 2003, when it returned 152%. Its worst was 2007, with a return of -48.6%.

### Is there a better investment than DHI?

Among DHI's popular alternatives, PHM, TOL and MHO earned more than DHI over the past 5 years with similar volatility: PHM returned 19.1% a year at 35.0% volatility, against 10.5% a year at 35.9%. Looking beyond its popular alternatives, TT (building products) and TJX (specialty retail) earned more than DHI with less volatility over the past 5 years. TT returned 22.7% a year at 27.7% volatility, against 10.5% a year at 35.9%.

### Is DHI more volatile than the S&P 500?

Yes. DHI's volatility over the past 5 years was 35.9%, about twice the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, DHI's return lands within 35.9% of its average, either way. The higher it is, the rougher the ride and the harder it is to hold through a slump.

### What is DHI's Sharpe ratio?

DHI's Sharpe ratio over the past 5 years was 0.46, against 0.79 for the S&P 500, so DHI earned less for each unit of risk than an index fund did. The Sharpe ratio is the return earned above cash for each unit of volatility: two investments with the same return are not equal if one got there with far bigger swings.

### How correlated is DHI with the S&P 500?

Over the past 5 years, DHI's monthly returns had a correlation of 0.58 with the S&P 500. Correlation runs from 1 (moving in lockstep) through 0 (unrelated) to −1 (moving in opposite directions). They often move together: some diversification next to an index fund, but not a cushion. In the table, the correlation column measures each option against DHI instead: the lower it is, the more that option would diversify a DHI holding.

### What are the best alternatives to DHI?

Of the 17 popular alternatives we compared, one outperformed DHI in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: BZH.

### Did DHI outperform the S&P 500?

DHI finished ahead of the S&P 500 (SPY) in 19 of 29 full calendar years. In 2025, it returned +4.2%, against +17.7% for the index.

### How did DHI do in stock market crashes?

DHI fell less than the S&P 500 (SPY) in three of the ten major crashes it has traded through, and further in seven. The clearest case was the Covid crash, when DHI fell 53.6% and the S&P 500 fell 33.7%.

### What diversifies DHI?

These had a low correlation with DHI over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.48), DXJ (correlation 0.23) and GCOW (correlation 0.49); among large stocks, CAH (correlation 0.23), CLS (correlation 0.11) and FIX (correlation 0.43). A correlation near zero means the two have moved largely independently.

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- [Home Depot (HD) Performance, Alternatives and Market Rank](https://easycompare.io/research/hd)
- [Schwab U.S. Dividend Equity ETF (SCHD) Performance, Alternatives and Market Rank](https://easycompare.io/research/schd)
- [NVIDIA (NVDA) Performance, Alternatives and Market Rank](https://easycompare.io/research/nvda)
- [Apple (AAPL) Performance, Alternatives and Market Rank](https://easycompare.io/research/aapl)
- [Alphabet (GOOG) Performance, Alternatives and Market Rank](https://easycompare.io/research/goog)
- [Microsoft (MSFT) Performance, Alternatives and Market Rank](https://easycompare.io/research/msft)
- [Amazon.com (AMZN) Performance, Alternatives and Market Rank](https://easycompare.io/research/amzn)
- [Vanguard Morningstar Total Stock Market ETF (VTI) Performance, Alternatives and Market Rank](https://easycompare.io/research/vti)
- [Taiwan Semiconductor Manufacturing (TSM) Performance, Alternatives and Market Rank](https://easycompare.io/research/tsm)
- [Space Exploration Technologies (SPCX) Performance, Alternatives and Market Rank](https://easycompare.io/research/spcx)
- [Meta Platforms (META) Performance, Alternatives and Market Rank](https://easycompare.io/research/meta)
- [Vanguard S&P 500 ETF (VOO) Performance, Alternatives and Market Rank](https://easycompare.io/research/voo)

## Explore further

- Full page with charts: https://easycompare.io/research/dhi
- All research pages: https://easycompare.io/llms.txt
- Compare the entire market against DHI live: https://betterthanspy.com/?b=DHI&utm_source=easycompare&utm_medium=research