Biotech, Homebuilder ETFs in Multiyear Breakouts

July 5th at 12:14pm by John Spence

ETFs tracking homebuilder and biotech stocks are the top-performing sectors in 2012 as the funds break out to multiyear highs.

The iShares Dow Jones US Home Construction Index Fund (NYSEArca: ITB) is up 42.6% year to date to lead all sector funds. SPDR S&P Homebuilders (NYSEArca: XHB) is another ETF indexed to residential housing stocks. [Homebuilder ETF at Highest Level Since 2008]

Investors in builder ETFs are looking for a bottom in the housing market after the subprime meltdown.

SPDR S&P Biotech (NYSEArca: XBI) and First Trust NYSE Arca Biotech (NYSEArca: FBT) are up 39.6% and 38.5% so far this year, respectively, according to investment researcher Morningstar. [Biotech ETF Breakout]

Biotech ETFs are rising on a bullish outlook for the drug industry and investors positioning for consolidation in the sector. XBI was trading at a fresh lifetime high on Thursday.

Healthcare ETFs are also breaking out. [Healthcare ETFs Rise After Supreme Court Ruling on Obamacare]

iShares Dow Jones US Home Construction Index Fund

SPDR S&P Biotech

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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