Subprime industry woes have been negatively affecting various sectors and exchange traded funds (ETFs) since early this year. (Although some might argue the subprime industry slip started earlier than that.) As this industry sinks, it creates a domino effect for other industries and the ETFs that follow them. Other areas affected besides the housing market include financials, retail and the dollar’s value, Dave Fry of ETF Digest says.

Although we discussed this in March, looking at some of the affected ETFs now shows that no improvements have been made despite the Dows’ record-breaking high today.

  • SPDR S&P Homebuilders (XHB)
  • iShares Dow Jones U.S. Home Construction (ITB)
  • Financial Select Sector SPDR (XLF)
  • PowerShares Dynamic Retail (PMR)
  • PowerShares U.S. Dollar Index Bullish Fund (UUP)


Until the subprime lending industry cleans up, these ETFs may continue to suffer.

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.