Homebuilder exchange traded funds were the top-performing sector in the first quarter with a 26% rally on signs of improvement in the housing market, unemployment data and the U.S. economy.

The iShares Dow Jones US Home Construction (NYSEArca: ITB) and SPDR S&P Homebuilders (NYSEArca: XHB) are doubling the return of the S&P 500 so far this year. [Builder ETFs Surge]

“Homebuilding is on the rebound. So one way for investors to play the housing recovery is to buy shares of two ETFs that track home construction and home improvement stocks,” writes Ian Wyatt of Wyatt Investment Research at Seeking Alpha.

The builder ETFs have been consolidating the past two weeks after a strong advance to start the year. [Is the Bottom In for Real Estate ETFs?]

However, some big traders are expressing caution on the outperforming sector this week.

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