Although it is billed as a homebuilders ETF, XHB has significant exposure to the discretionary side of the residential real estate industry, helping explain the ETF’s 90-day surge of almost 9%. XHB allocates a combined 33.8% of its weight to home furnishings producers, retailers of those products and home improvement retailers. [Discretionary ETF Surges]

XHB’s primary rival, the iShares U.S. Home Construction ETF (NYSEArca: ITB) is trading slightly lower Monday. That ETF has a 0.91% weight to Lumber Liquidators. The PowerShares Dynamic Building & Construction Portfolio (NYSE: PKB) has no Lumber Liquidators exposure and is higher by half a percent today.

SPDR S&P Homebuilders ETF

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