# How Home Depot (HD) compares with the whole market and its popular alternatives

> Source: EasyCompare research, https://easycompare.io/research/hd
> 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 HD alone. It places HD (The Home Depot, Inc.) against 16 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 HD stands in the market, and of the alternatives worth a closer look.

Period covered: HD's full trading record, from October 1986 through September 2026. All returns include reinvested dividends. Data as of October 20, 2026.

## Key findings

- **Right now:** HD has gone against the market, falling 8.9% over the past 6 months while the S&P 500 rose 9.1%. HD is 23.5% below its high, bear-market territory, while the S&P 500 sits 1.3% below a record.
- **Stock or market?:** HD fell 4.7% over the past 3 months, less than the 0.99 beta versus the S&P 500 would have implied (3.9%). Its specialty retail peers did not move as one over the past 3 months: WSM (Williams-Sonoma) rose 14.1%, while BLDR (Builders FirstSource) fell 25.8%.
- **Past 1 to 3 years:** Over the past year, HD fell 16.7% while the S&P 500 rose 15.8%. The same gap shows up over 3 years (18.8% against 89.3%). The last two calendar years both went the same way: HD fell 9.3% in 2025, while the S&P 500 rose 15.8%.
- **Long term:** HD turned $10,000 into $31,700 over the past decade, against $42,100 in the S&P 500.
- **In a crash:** Across seven sell-offs, HD has typically fallen 1.2 times as far as the S&P 500. In the 2022 bear market, HD fell 34.2%, against 24.5% for the S&P 500. That was more than TSCO (Tractor Supply, 27.8%) but less than WSM (Williams-Sonoma, 35.8%).
- **Diversification:** Against the S&P 500, HD has a correlation of 0.63 over 5 years, more closely than 94% of stocks worth at least $300 million. Next to an index fund it is more of the same, not a cushion.
- **Better options**
  - **Nearby categories and themes:** COST (Costco Wholesale, discount retail) and WMT (Walmart, discount retail) earned more than HD with less volatility over the past 5 years. COST returned 17.4% a year at 22.9% volatility, against a loss of 0.0% a year at 24.7%.
  - **Versus the S&P 500:** Simply owning the S&P 500 would have done better over the past 5 years: 12.7% a year at 17.1% volatility, against 0.0% at 24.7% for HD.
  - **Whole market:** 906 of the 3,633 stocks and funds worth at least $500 million earned more than HD with less volatility over the past 5 years, among them VTI (Vanguard Morningstar Total Stock Market ETF), VOO (Vanguard S&P 500 ETF) and BRK-B (Berkshire Hathaway).

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

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

- $10,000 invested in HD at the end of September 1997 would have grown to $287,658 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 HD, and TSCO finished highest, at $1,578,957.

## HD 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.

- HD is still 23.5% below its all-time high.
- HD's deepest decline since it began trading in 1986 was 70.5%, from December 1999 to March 2009. It took about three years from the low to climb back to its old high.
- Over 29 full calendar years, HD's best was 1998, when it returned 108%, and its worst was 2002, when it lost 52.6%. It lost money in eight of those years.

- Type: Stock, Consumer Discretionary (Home Improvement)
- Trading since: October 17, 1986
- Market value: $314B
- Volatility (5 years): 24.7%; Sharpe ratio: 0.12
- Worst decline ever: −70.5%, from December 31, 1999 to March 6, 2009; back at its high by August 14, 2012

| Period | HD total return |
| --- | --- |
| 1 month | +6.0% |
| 3 months | −4.7% |
| 6 months | −8.9% |
| year to date | −6.9% |
| 1 year | −16.7% |
| 3 years | +18.8% |
| 5 years | −0.2% |
| 10 years | +217% |

## HD against the whole market

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

### How does HD rank among all stocks?

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

- HD's worst decline of the past 10 years ranks in the top 5% of the 2,187 stocks worth at least $300 million, where the top fell the least.
- HD's 1-year return ranks in the bottom 22% of the 3,287 stocks worth at least $300 million with 1 year of history.

| Measure | HD | Rank |
| --- | --- | --- |
| 1-year return | −16.7% | 2,555 of 3,287 (top 78%) |
| 3-year return | +18.8% | 2,038 of 3,017 (top 68%) |
| 5-year return | −0.2% | 1,735 of 2,893 (top 60%) |
| 10-year return | +217% | 802 of 2,202 (top 37%) |
| Volatility, 5 years | 24.7% | 303 of 2,893 (top 11%) |
| Sharpe ratio, 5 years | 0.12 | 2,055 of 2,893 (top 72%) |
| Worst decline, past 10 years | −38.0% | 104 of 2,187 (top 5%) |

### What has beaten HD 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).

- 160 stocks and 746 ETFs worth at least $500 million sit in the green region: each earned more than HD over the past 5 years with smaller price swings. That is 25% of the 3,633 screened.
- Among those with at least half HD's swings, DXJ has the best return for its risk: 26.6% a year at 19.1% volatility, 23% less than HD's 24.7%, and a Sharpe ratio (return above cash per unit of volatility) of 1.34 against 0.12 for HD.
- None of HD's popular alternatives made it, but WMT (discount retail) did: 20.8% a year at 22.6% volatility, 9% less than HD's 24.7%.

### Is there a better investment than HD?

The table below lists investments that beat HD 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 HD's popular alternatives, WSM, DHI and MAS were ahead of HD in most short and long periods, though with much bigger swings (44.4%, 35.9% and 31.1% volatility against 24.7%).
- Looking beyond its popular alternatives, COST (discount retail) and WMT (discount retail) earned more than HD with less volatility over the past 5 years. COST returned 17.4% a year at 22.9% volatility, against a loss of 0.0% a year at 24.7%.
- Simply owning the S&P 500 would have done better over the past 5 years: 12.7% a year at 17.1% volatility, against 0.0% at 24.7% for HD.

The 15 strongest of 906 investments that beat HD 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 HD | Better on |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| HD: The Home Depot, Inc. (this page) |  | 0.0% | 24.7% | 0.12 | −38.0% | +217% |  |  |
| [BRK-B](https://easycompare.io/research/brk-b): Berkshire Hathaway Inc. | Insurance | +13.4% | 17.1% | 0.82 | −29.6% | +274% | 0.42 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | Gold | +17.7% | 18.9% | 0.96 | −26.4% | +213% | 0.14 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [VIG](https://easycompare.io/research/vig): Vanguard Dividend Appreciation ETF | US Dividend Equity | +10.4% | 14.1% | 0.78 | −31.7% | +258% | 0.73 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [IWF](https://easycompare.io/research/iwf): iShares Russell 1000 Growth ETF | US Large-Cap Growth | +11.7% | 21.8% | 0.62 | −32.7% | +416% | 0.52 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [WM](https://easycompare.io/research/wm): Waste Management, Inc. | Environmental Services | +9.3% | 19.2% | 0.56 | −30.1% | +344% | 0.46 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| JAAA: Janus Henderson AAA CLO ETF | CLO Bonds | +5.1% | 1.7% | 2.98 | −2.6% | — | 0.27 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| IUSG: iShares Core S&P U.S. Growth ETF | US Growth Equity | +12.9% | 21.2% | 0.68 | −32.4% | +405% | 0.54 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [WCN](https://easycompare.io/research/wcn): Waste Connections, Inc. | Environmental Services | +6.1% | 20.0% | 0.40 | −31.6% | +270% | 0.52 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| OEF: iShares S&P 100 ETF | US Large-Cap Equity | +14.3% | 17.8% | 0.84 | −31.4% | +367% | 0.54 | 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% | 0.49 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| SPHQ: Invesco S&P 500 Quality ETF | US Quality Equity | +12.0% | 16.7% | 0.76 | −31.6% | +300% | 0.71 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| IOO: iShares Global 100 ETF | Global Equity | +15.7% | 17.2% | 0.94 | −31.4% | +361% | 0.50 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| TDIV: First Trust NASDAQ Technology Dividend Index Fund | Technology Equity | +16.2% | 21.3% | 0.81 | −32.0% | +388% | 0.48 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods; Smaller losses in recent crashes |
| [JNJ](https://easycompare.io/research/jnj): Johnson & Johnson | Pharmaceuticals | +12.7% | 17.9% | 0.76 | −27.4% | +196% | 0.41 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | International Equity | +17.0% | 11.1% | 1.48 | −32.4% | +194% | 0.48 | Higher return, lower volatility; Higher Sharpe, smaller worst decline; Higher return in most periods |

## HD against its popular alternatives

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

### How do HD'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.

- None of the 15 popular alternatives earned more than HD over the past 5 years with smaller price swings, so every higher return on the map came with a bumpier ride.
- Ten of the 15 popular alternatives earned less than HD over the past 5 years while swinging more, the weaker corner of the map.
- Over the past 5 years, HD returned -0.0% a year, less than the S&P 500's 12.7%, with higher volatility (24.7% against 17.1%).

### Has HD consistently beaten its popular alternatives?

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

- Four of the 16 popular alternatives, led by WSM, DHI and MAS, outperformed HD in at least 3 of 5 short-term and 2 of 3 long-term timeframes.
- WSM and DHI outperformed HD in every long-term period and in all but one short-term period, the most consistent record in the group.

| Investment | 1Y return | 3Y return | 5Y return | 10Y return | Periods ahead of HD | Verdict | Sharpe |
| --- | --- | --- | --- | --- | --- | --- | --- |
| HD: The Home Depot, Inc. (this page) | −16.7% | +18.8% | −0.2% | +217% |  |  | 0.12 |
| WSM: Williams-Sonoma, Inc. | +35.6% | +238% | +199% | +1,268% | 5/5 short-term, 3/3 long-term | all-weather | 0.71 |
| [DHI](https://easycompare.io/research/dhi): D.R. Horton, Inc. | −7.7% | +43.7% | +65.0% | +434% | 4/5 short-term, 3/3 long-term | all-weather | 0.46 |
| MAS: Masco Corporation | +10.7% | +57.7% | +35.3% | +162% | 5/5 short-term, 2/3 long-term | consistent | 0.35 |
| HVT: Haverty Furniture Companies, Inc. | +49.4% | +20.7% | +20.5% | +204% | 4/5 short-term, 2/3 long-term | consistent | 0.28 |
| W: Wayfair Inc. | +36.6% | +159% | −54.2% | +213% | 5/5 short-term, 1/3 long-term |  | 0.21 |
| ARHS: Arhaus, Inc. | +5.5% | +31.2% | — | — | 5/5 short-term, 1/3 long-term |  | — |
| ETD: Ethan Allen Interiors Inc. | −9.1% | −1.2% | +32.8% | +38.1% | 4/5 short-term, 1/3 long-term |  | 0.34 |
| [LOW](https://easycompare.io/research/low): Lowe's Companies, Inc. | −16.4% | +10.7% | −3.2% | +236% | 1/5 short-term, 1/3 long-term |  | 0.11 |
| BLDR: Builders FirstSource, Inc. | −56.0% | −50.7% | −7.5% | +417% | 0/5 short-term, 1/3 long-term |  | 0.20 |
| RH: Rh | −33.4% | −48.5% | −82.4% | +302% | 0/5 short-term, 1/3 long-term |  | -0.24 |
| TSCO: Tractor Supply Company | −39.0% | −10.7% | −10.8% | +198% | 1/5 short-term, 0/3 long-term |  | 0.07 |
| FBIN: Fortune Brands Innovations, Inc. | −17.9% | −25.1% | −47.3% | +2.4% | 1/5 short-term, 0/3 long-term |  | -0.15 |
| SITE: SiteOne Landscape Supply, Inc. | −20.4% | −29.6% | −54.7% | +202% | 0/5 short-term, 0/3 long-term |  | -0.18 |
| LEN: Lennar Corporation | −36.1% | −20.2% | −16.5% | +112% | 0/5 short-term, 0/3 long-term |  | 0.07 |
| WHR: Whirlpool Corporation | −60.4% | −74.6% | −82.9% | −75.0% | 0/5 short-term, 0/3 long-term |  | -0.65 |
| FND: Floor & Decor Holdings, Inc. | −37.3% | −45.1% | −64.8% | — | 0/5 short-term, 0/3 long-term |  | -0.21 |

### How did HD do year by year?

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

- HD finished ahead of the S&P 500 in 17 of its 29 full calendar years, and behind it in each of the last four.
- Ranked against its popular alternatives each year, HD finished in the top quarter in eight of 29 years and in the bottom quarter in four. In 2025, it ranked 9 of 17.
- Among its popular alternatives, SITE came out ahead of HD most often, in five of the nine years both traded.

| Year | HD | SPY |
| --- | --- | --- |
| 2025 | −9.3% | +17.7% |
| 2024 | +15.0% | +24.9% |
| 2023 | +12.8% | +26.2% |
| 2022 | −22.0% | −18.2% |
| 2021 | +59.5% | +28.7% |
| 2020 | +24.5% | +18.3% |
| 2019 | +30.6% | +31.2% |
| 2018 | −7.3% | −4.6% |
| 2017 | +43.8% | +21.7% |
| 2016 | +3.5% | +12.0% |

## Risk and diversification

How HD 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 HD's worst declines?

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

- In all three of HD's worst declines, the S&P 500 held up better over the same dates.
- The slowest recovery came after HD fell 70.5% from December 1999 to March 2009; it did not regain that peak until August 2012, three years later.

| Decline | Peak | Low | Back at the high | SPY over the same dates | Market event |
| --- | --- | --- | --- | --- | --- |
| −70.5% | December 31, 1999 | March 6, 2009 | August 14, 2012 | −45.4% | dot-com bust |
| −53.3% | August 25, 1987 | October 26, 1987 | June 10, 1988 | — |  |
| −38.0% | February 20, 2020 | March 20, 2020 | May 27, 2020 | −31.7% | Covid crash |
| −37.1% | July 16, 1990 | October 16, 1990 | January 24, 1991 | — |  |
| −34.7% | December 7, 2021 | September 26, 2022 | March 21, 2024 | −21.0% | 2022 bear market |

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

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

- Among its popular alternatives, HVT held up best, falling less than HD in eight of the ten crashes they both traded through.
- HD fell further than the S&P 500 in six of the ten crashes it has traded through. The clearest case was the dot-com bust, when HD fell 64.9% and the S&P 500 fell 47.5%.

| Crash | Dates | HD fall | SPY fall |
| --- | --- | --- | --- |
| Dot-com bust | March 10, 2000 to October 9, 2002 | −64.9% | −47.5% |
| Global financial crisis | October 9, 2007 to March 9, 2009 | −44.3% | −55.2% |
| Flash crash | May 6, 2010 to May 7, 2010 | −1.6% | −1.5% |
| Euro debt crisis | July 22, 2011 to October 3, 2011 | −22.2% | −17.9% |
| China devaluation & oil rout | August 10, 2015 to February 11, 2016 | −16.9% | −12.8% |
| Volmageddon | February 2, 2018 to February 9, 2018 | −6.6% | −6.5% |
| Q4 2018 selloff | September 21, 2018 to December 24, 2018 | −25.1% | −19.3% |
| COVID crash | February 19, 2020 to March 23, 2020 | −38.0% | −33.7% |
| 2022 bear market | January 4, 2022 to October 12, 2022 | −34.2% | −24.5% |
| SVB / regional bank stress | March 8, 2023 to March 13, 2023 | −1.8% | −3.4% |

### How closely does HD 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 WSM, DHI and TSCO had a higher capture ratio (upside capture divided by downside capture) than HD's 0.81, out of 14 popular alternatives with the same record.
- TSCO took just 95% of the S&P 500's losses, against 117% for HD, while still keeping 83% of its gains.
- Over the past 10 years, HD captured 96% of the S&P 500's gains in rising months and 117% of its losses in falling months, with a beta of 1.00. Its share of the market's losses was larger than its share of the gains.

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

| Investment | Upside capture | Downside capture | Beta |
| --- | --- | --- | --- |
| HD: The Home Depot, Inc. (this page) | 96.0% | 117% | 1.00 |
| WSM: Williams-Sonoma, Inc. | 139% | 107% | 1.57 |
| [DHI](https://easycompare.io/research/dhi): D.R. Horton, Inc. | 132% | 146% | 1.51 |
| MAS: Masco Corporation | 111% | 158% | 1.30 |
| HVT: Haverty Furniture Companies, Inc. | 106% | 141% | 1.42 |
| W: Wayfair Inc. | 230% | 356% | 3.06 |
| ETD: Ethan Allen Interiors Inc. | 75.0% | 122% | 1.10 |
| [LOW](https://easycompare.io/research/low): Lowe's Companies, Inc. | 107% | 134% | 1.10 |
| BLDR: Builders FirstSource, Inc. | 163% | 203% | 1.90 |
| RH: Rh | 197% | 283% | 2.21 |
| TSCO: Tractor Supply Company | 83.0% | 95.0% | 0.74 |
| FBIN: Fortune Brands Innovations, Inc. | 96.0% | 193% | 1.47 |
| SITE: SiteOne Landscape Supply, Inc. | 116% | 161% | 1.31 |
| LEN: Lennar Corporation | 106% | 155% | 1.46 |
| WHR: Whirlpool Corporation | 76.0% | 230% | 1.52 |

### What diversifies HD?

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 HD into GLD would have cut the portfolio's volatility by 17% over the past 5 years and raised its annual return (-0.3% for HD alone, +3.8% for the mix).
- Among large ETFs, LVHI, DXJ and MLPX have moved largely independently of HD over the past 5 years, with correlations of 0.48 or lower, and each still earned a positive 5-year return.
- MCK made money in five of the eight calendar years in which HD lost money.

| Investment | Correlation with HD | 5Y return | Volatility | Sharpe | Rose in HD's 8 down years |
| --- | --- | --- | --- | --- | --- |
| LVHI: Franklin International Low Volatility High Dividend Index ETF | 0.48 | +119% | 11.1% | 1.48 | 2 of 8 |
| DXJ: WisdomTree Japan Hedged Equity Fund | 0.28 | +225% | 19.1% | 1.34 | 2 of 8 |
| MLPX: Global X - MLP & Energy Infrastructure ETF | 0.42 | +135% | 19.7% | 0.97 | 2 of 8 |
| [SMH](https://easycompare.io/research/smh): VanEck Semiconductor ETF | 0.43 | +323% | 36.9% | 0.97 | 3 of 8 |
| [GLD](https://easycompare.io/research/gld): SPDR Gold Shares | 0.14 | +126% | 18.9% | 0.96 | 4 of 8 |
| [XLE](https://easycompare.io/research/xle): State Street Energy Select Sector SPDR ETF | 0.20 | +177% | 25.5% | 0.93 | 5 of 8 |
| DFIV: Dimensional - International Value ETF | 0.48 | +99.4% | 16.4% | 0.93 | 1 of 8 |
| EWT: iShares MSCI Taiwan ETF | 0.35 | +153% | 24.2% | 0.89 | 3 of 8 |

## Common questions

### What was HD's worst drawdown?

HD's deepest decline since it began trading in 1986 was 70.5%, from December 1999 to March 2009. It took about three years from the low to climb back to its old high.

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

Over 29 full calendar years, HD's best year was 1998, when it returned 108%. Its worst was 2002, with a return of -52.6%.

### Is there a better investment than HD?

Among HD's popular alternatives, WSM, DHI and MAS were ahead of HD in most short and long periods, though with much bigger swings (44.4%, 35.9% and 31.1% volatility against 24.7%). Looking beyond its popular alternatives, COST (discount retail) and WMT (discount retail) earned more than HD with less volatility over the past 5 years. COST returned 17.4% a year at 22.9% volatility, against a loss of 0.0% a year at 24.7%.

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

Yes. HD's volatility over the past 5 years was 24.7%, 1.4 times the S&P 500's 17.1%. Volatility measures how widely returns swing around their average: in roughly two years out of three, HD's return lands within 24.7% 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 HD's Sharpe ratio?

HD's Sharpe ratio over the past 5 years was 0.12, against 0.79 for the S&P 500, so HD 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 HD with the S&P 500?

Over the past 5 years, HD's monthly returns had a correlation of 0.63 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 HD instead: the lower it is, the more that option would diversify a HD holding.

### What are the best alternatives to HD?

Of the 16 popular alternatives we compared, four outperformed HD in at least 3 of 5 short-term and 2 of 3 long-term timeframes, with dividends reinvested: WSM, DHI and MAS.

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

HD finished ahead of the S&P 500 (SPY) in 17 of 29 full calendar years. In 2025, it returned -9.3%, against +17.7% for the index.

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

HD fell less than the S&P 500 (SPY) in two of the ten major crashes it has traded through, and further in six. The clearest case was the dot-com bust, when HD fell 64.9% and the S&P 500 fell 47.5%.

### What diversifies HD?

These had a low correlation with HD over the past 5 years and still earned a positive 5-year return: among large ETFs, LVHI (correlation 0.48), DXJ (correlation 0.28) and MLPX (correlation 0.42); among large stocks, CAH (correlation 0.29), CLS (correlation 0.21) and FIX (correlation 0.48). A correlation near zero means the two have moved largely independently.

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- [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)

## Explore further

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