Homebuilders exchange traded funds (ETFs) won’t appreciate the latest news from Lennar (LEN). The 2007 outlook is empty, as the company is writing down the value of real estate and options on land they own. Joshua Lipton of Forbes reports that the company is doing far worse than analysts had predicted and that they will be selling their stake in a community development.

In addition to a crawling housing sector, Bob Nardelli, CEO of Home Depot (HD) resigned. After his six years, he was the target of criticism for his hefty pay and the company’s poor stock performance. Harry R. Weber of the Associated Press wrote that Nardelli won’t be leaving empty handed; his severance package is worth $210 million. This has many  corporate pay critics screaming.  Industry experts say this resignation is a good thing in the long-run for the company and its shares.

These are two big companies within and related to the homebuilding sector.  But as the homebuilding ETFs below indicate, their positions do not dominate any one ETF.

• PowerShares Dynamic Building & Construction (PKB) [5% Home Depot; 5% Lennar]
• SPDR Homebuilders (XHB)[4% Home Depot; 5% Lennar]
• iShares Dow Jones US Home Construction (ITB) [6% Lennar]

Tags: Homebuilders, Real Estate