Homebuilder ETFs

Homebuilder ETFsHistory tells us that the malaise in the U.S. housing industry will eventually run its course and homebuilding will pick up again.

Homebuilder ETFs offer investors a way to gain exposure to the residential construction industry in a diversified and cost effective way.

State Street’s SPDR S&P Homebuilders ETF (Amex: XHB) tracks an equal-weighted index of 21 companies with exposure to new home construction. The fund’s holdings include major home-builders such as DR Horton (NSYE: DHI), Toll Brothers (NYSE: TOL), and Centex (NYSE: CTX) as well as retailers and manufacturers that cater to new home owners such as Home Depot (NSYE: HD) , Lowes (NYSE: LOW) , Sherwin Williams (NYSE: SHW) and Mowhawk (NYSE: MHK). Learn more at State Street’s website.

The iShares Dow Jones U.S. Home Construction Index Fund (NYSEArca: ITB) tracks an index of 22 companies that construct homes or build prefabricated or mobile homes. Top holdings as of March 12 include M/I Homes (NYSE: MHO), Pulte (NYSE: PHM) and NVR (NYSE: NVR). For more information, see iShares’ website.

Be Sociable, Share!

Powered by WordPress. Designed by Woo Themes