Traders Nibble at a Homebuilders ETF

Homebuilders exchange traded funds are among this year’s most downtrodden industry funds. The SPDR S&P Homebuilders ETF (NYSEArca: XHB) is down more than 23% year-to-date, but some traders have recently scooping up shares of the equal-weight homebuilders fund.

Some recent encouraging data points facilitated a rally in homebuilder ETFs. Over the past week, XHB is up more than 4%. Supporting the gains in the homebuilder sector, the Census Bureau revealed the homeownership rate was 64.4% in the third quarter, compared to 64.3% in the prior three months and 63.9% a year earlier, Bloomberg reports.

XHB “took in $111 million Tuesday, its largest inflow since 2014,” reports Bloomberg. “Investors also traded $437 million worth of the fund’s stock on the day, more than quadruple the average daily volume for the homebuilders ETF in the past year. XHB shares, which are down around 11% this month and 23% this year, rallied 5% during the session.

XHB ETF Details

XHB features significant exposure to consumer discretionary and retail stocks that are tied to the residential real estate trade.

XHB “seeks to provide exposure to the homebuilders segment of the S&P TMI, which comprises the following sub-industries: Building Products, Home Furnishings, Home Improvement Retail, Homefurnishing Retail, and Household Appliances,” according to the issuer.