“XHB has 67% of its portfolio in non-home construction industries versus 33% for its largest competitor, and offers a more well-rounded exposure to the housing market with higher weights to housing retail and building products industries,” State Street Head of Research Dave Mazza said in an email. [Building Something With a Homebuilders ETF]
Looking more toward the long-term, the housing sector could still perform.
“There are some clear conditions in place that offer the sector the potential to perform well looking ahead,” Morningstar‘s Manager Research Analyst Robert Goldsborough said. “These include still-tight home inventories, cheap credit, growth in the household formation rate, and strong employment trends.”
SPDR S&P Homebuilders ETF
For more information on the housing market, visit our homebuilders category.
Max Chen contributed to this article.