ETF Trends
ETF Trends

Exchange traded funds that invest in homebuilders and related sectors were higher Thursday after the Commerce Department said housing starts rose nearly 4% in May.

Also Thursday, Pier One (NYSE: PIR) said its first-quarter profit nearly doubled. The furniture and home furnishings retailer accounts for nearly 5% of SPDR S&P Homebuilders ETF (NYSEArca: XHB).

The ETF rose more than 1% on Thursday, while iShares Dow Jones US Home Construction (NYSE: ITB) rallied over 2%.

The ETFs invest in homebuilder stocks such as Toll Brothers (NYSE: TOL), but also hold other companies and sectors that serve the residential market.

SPDR S&P Homebuilders ETF was fractionally negative this year through Wednesday’s close.

Earlier this week, an index showed that homebuilder confidence levels fell in June to their lowest in nearly a year.

SPDR S&P Homebuilders ETF

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.