A homebuilder exchange traded fund has rallied 40% from its 52-week low set earlier this month on improved sentiment over the U.S. economy and Europe’s debt issues.
SPDR S&P Homebuilders (NYSEArca: XHB) jumped 4% in early trading Thursday after European leaders hammered out a debt deal that includes a 50% principal reduction on Greek bonds. [ETFs Higher on Debt Deal]
The builder ETF was trading hands at $17.06 a share Thursday morning, up about 40% from the low of $12.21 the fund saw in early October. [Builder ETFs Rally]
Recent data is fueling hopes the economy will sidestep another recession. New home sales rose nearly 6% in September, the Commerce Department said Wednesday. U.S. GDP rose 2.5% in the third quarter, the government said Thursday. [Housing ETFs Rebound]
Despite the big rally this month, the builder ETF was still in negative territory for 2011 as of Wednesday’s close. [Builder ETFs at 2009 Levels]
Options traders that bet on a rebound in housing ETFs have been rewarded handsomely this month. [ETF Chart of the Day: Builders]