As if those performances are not enough in the cautionary tales department, consider that ITB and XBH slumped in 2006 while the S&P 500 gained over 13%.
It is also worth noting that ITB and XHB can be intimately correlated to rises National Association of Realtors Housing Affordability Index. Rises in the index indicate increased profitability. The index fell in the second quarter with ITB and XHB following suit, but in August, the index rose. ITB and XHB gained 8.7% and 6.9%, respectively while the S&P 500 was up 4.3%.
SPDR S&P Homebuilders ETF
ETF Trends editorial team contributed to this post.