The WSJ’s John Spence reports that home builder exchange traded funds and bank ETFs are number one and two so far this year.
In the article Home Builders Craft ETF Gains, Spence reports that the home builders are benefiting from surprisingly good earnings reports for the fourth quarter. Spence notes that the sector is highly volatile and that solid performance doesn’t guarantee future gains.
Top home builder ETFs include the iShares Dow Jones U.S. Home Construction Index Fund (ITB) and the SPDR S&P Homebuilders ETF (XHB). In terms of 2010 performance, the SPDR KBW Bank ETF (KBE) is a close second to ITB.