For instance, top holdings of XHB currently are PHM (Homebuilder), LL (Lumber Liquidators Holdings), SPF (Standard Pacific – Wood/Paper), MDC (Homebuilder), and USG (3.66% – Building Materials). Similarly, PKB is currently top end weighted to some non-homebuilder names as well including VMC, HD, PWR, and IR for example.
We point out the distinctions between XHB and PKB versus ITB just to illustrate where the “Name” of a particular ETF may sometimes be misleading in terms of offering the end investor the exact exposure that they ultimately desire. This “distinction”, between Homebuilders “pure” and Homebuilders/Home Construction/and Related Names has meant a world of difference in returns in 2012. ITB has rallied a mind boggling 70.87% YTD versus XHB’s return of 50.00% while PKB brings up the rear, up 35.64% YTD.
SPDR S&P Homebuilders
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at [email protected].