XHB, which tracks the performance of the S&P Homebuilders Select Industry Index, is up 15% year-to-date. As people head to stores like Lowe’s and Home Depot, companies covered in this ETF, its value will likely see positive results as demand for building materials increases, says Thomson Reuters.
Meanwhile, ITB and XLB, which are up 26% and 11% year-to-date, respectively, will likely follow the same positive outlook.
“First Harvey, and now Irma should shower gains on infrastructure stocks as re-building will push up their demand. So, companies dealing in building materials should see a surge,” reports Zacks Investment Research. “The two storms are likely to create a greater need to rebuild infrastructure such as homes, office, roads, bridges and many others propelling demand for all types of home improvement equipment. As such, ETFs that focus on these industries are poised to benefit in the coming days.”
For more information on the infrastructure ETF sector, visit our infrastructure category.