The SPDR S&P Homebuilders ETF (NYSEArca: XHB) and the iShares U.S. Home Construction ETF (NYSEArca: ITB) have retreated a bit in recent days alongside the broader market, but the two marquee homebuilders exchange traded funds are still up more than 13%, on average, year-to-date.
The equal-weight XHB mixes stocks such as Tempur Sealy (NYSE: TPX), Williams-Sonoma (NYSE: WSM) and Restoration Hardware (NYSE: RH) with pure play homebuilders such as Lennar (NYSE: LEN) and Toll Brothers (NYSE: TOLL) among others. XHB is up more than 10%. With ITB being a more pure play on homebuilders equities, that ETF is really soaring with a year-to-date gain of 17.3%.
Recent data points boosted homebuilder equities and ITB and XHB, but some market observers believe the sector has reached an important technical juncture.
“A monthly index of builder sentiment jumped six points to the highest level in 12 years. The National Association of Home Builders/Wells Fargo Housing Market index hit 71 in March, a sizable jump from 58 in March of 2016. Anything above 50 is considered positive sentiment,” reports CNBC.