What Homebuilder ETFs Are Up Against | ETF Trends

Along with the usual New Year market predictions were a slew of guesses as to what’s going to happen in the housing market. Homebuilder exchange traded funds (ETFs) have got their work cut out.

Some major points that are dominating the industry include:

Few can seem to agree on what will happen to the housing market, but there appears to be a current uptrend in place given that both homebuilder ETFs are above their 200-day moving averages.

There are two ways to play homebuilders with ETFs: SPDR S&P Homebuilders (NYSEArca: XHB), which concentrates primarily on homebuilder stocks, and iShares Dow Jones U.S. Home Construction (NYSEArca: ITB), which has a larger holding in home retailers in addition to homebuilders.

Tisha Guerrero contributed to this article.

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.