Ebbs and Flows for ETFs That Follow the Housing Market

July 10, 2007 at 4:02 pm by Tom Lydon      Bookmark and Share

Home_etfs Slow job growth, tapped-out consumers and low home prices are influencing home-related exchange traded funds (ETFs). The SPDR S&P Homebuilders (XHB) has lost 21% year-to-date. Holdings include D R Horton (DHI), Home Depot (HD), Lennar (LEN), Pulte Homes (PHM) and Sherwin Williams (SHW), ETF Guide reports. In fact, Home Depot announced today that it was cooling its earning expectations for the year partly because of the weak housing market.

Real estate nationwide is suffering a similar slump partly because of declining home values. So, it’s no surprise that the Vanguard REIT ETF (VNQ) is down as well. VNQ is down 5.5% year-to-date. Similarly, iShares Dow Jones U.S. Real Estate Index Fund (IYR) is down 5.0%.

Don’t despair just yet: Bucking the downward trends include PowerShares Dynamic Building Construction Portfolio (PKB) and SPDR DJ Wilshire International Real Estate ETF (RWX). PKB uses a quantitative strategy, which could account for it’s high performance; it’s up 25.4% for the year. RWX is up 3.6% year-to-date.

Home_etfs_chart_2

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  • john
    hi nice site thx
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