Update: Homebuilder ETFs

We last looked at homebuilder ETFs on March 13.

Since then, the U.S. Senate has proposed giving homebuilders a $25 billion tax break among other measures to reinvigorate the U.S. home construction industry.

The rush to throw money at the homebuilders hasn’t hurt stock prices.

State Street’s SPDR S&P Homebuilders ETF (Amex: XHB) is up 11% and iShares Dow Jones U.S. Home Construction Index Fund (NYSEArca: ITB) is up 14% compared to the market’s 4% gain since March 13.

Chart source: Yahoo! Finance

Does the market see light at the end of the tunnel for the home building industry?

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