Homebuilding exchange traded funds were the top performers for today’s trading. The top three ETF slots were filled by iShares Dow Jones U.S. Home Construction (ITB) up 4.4%, SPDR Homebuilders (XHB) gained 4.2% and PowerShares Dynamic Building & Construction (PKB) up 2.9%. This was due to news that mortgage rates fell for a second week on weaker-than-expected economic growth and easing inflation concerns.
PKB has a longer history than the other two ETFs, as it began trading in October 2005. A look at the chart below shows the ETF was hit hard in May when markets declined, but is now on a bit of an uptrend, especially with today’s move. The top holding, Fluor Corp. (FLR) provides construction mainly to the oil and gas industry. Another top holding, American Standard Co. (ASD) among other things manufactures air conditioners, which with the recent heat wave have been in high demand.
The opinions and forecasts expressed herein are solely those of Tom Lydon, 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.