This Homebuilder ETF Guide is not very large due to the fact that there are limited numbers of these ETF’s. There is the SPDR S&P Homebuilders ETF (XHB), PowerShares Dynamic Building & Construction Index Portfolio (PKB) and the iShares Dow Jones US Home Construction (ITB).
The ITB‘s investment strategy is to mirror the Dow Jones US Select Home Construction index as closely as possible. There are a total of 27 holdings in this ETF with the top 10 accounting for 61.59% of the total assets. 64.86% of the holdings are in new home construction. The one year annualized return as of March 31, 2010 was 55.65%. The average trading volume is 546k with an expense ratio of 0.46%. The price as of May 12, 2010 was $14.65.
The XHB attempts to mirror the S&P Homebuilders Select Industry Index. The holding in this ETF’s assets are at 27 with the top 10 accounting for 41.73% of the total assets. 61.14% are in new home construction. The one year annualized return as of April 30, 2010 was 42.47%.The average daily trading volume is 7.1 million with an expense ratio of 0.35%. The price as of May 12, 2010 was $18.38.
The PKB was the first ETF in this select market back in 2005. This ETF attempts to mirror the Building & Construction Intellidex Index. This ETF has 30 company stocks in its holdings with the top 10 accounting for 46.50%. 67.23% of the holdings are in new home construction. The one year annualized return as of March 31, 2010 was 37.96%. The average trading volume is 41k with an expense ratio of 0.60%. The price as of May 12, 2010 was $13.51.
When ETF investing in this sector it is best to remember this is a very cyclic market and the profit to losses swings will be large. This Homebuilder ETF Guide advises a great deal of caution when thinking of investing in one of these ETF’s.
For additional resources about ETF on this website, please view U.S. Dollar ETF.
If you would like other investing news from Janus then please try Janus High Yield Fund Review on our sister site topperformingmutualfunds.net or Vanguard Extended Market Index Fund on bestmutualfundsnow.com for other investing news.
We strive to bring you the latest and most accurate data possible from the home sites of the investment institutions we name. Always remember the bigger the risk, the larger the reward or loss. Invest with caution.
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