Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Database
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
    • ETFs Future-Forward 2021: An iShares Investing Symposium
    • Three Themes for 2021: An iShares & MSCI Investing Symposium
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. SPDR Homebuilders ETF on a Tear (XHB)
News
Share

SPDR Homebuilders ETF on a Tear (XHB)

Jared CummansMay 26, 2015
2015-05-26

The U.S. housing market was one of the biggest catalysts behind the Great Recession in 2008, as its bubble and eventual collapse reverberated throughout global markets. As such, it has been particularly under the microscope since the recession, as investors want to keep an eye on a sector that had such a major impact just a few years ago.

One of the most popular funds in the housing space is the SPDR Homebuilders ETF (XHB A+), which has been performing very well over the last few years and has made a nice jump thus far in 2015.

XHB on the Rise

As the housing market has clawed its way back from its 2008 depths, so too has this popular ETF, which now has more than $1.6 billion in assets and trades hands more than 870,000 times each day. Over the last five years, the fund has gained more than 100%, and is up nearly 30% since making a low in October of last year. The following chart shows XHB and SPY over the trailing five year period:


Content continues below advertisement

XHB vs SPY Line Chart

Though its ride has been a bit rockier, XHB has managed to outperform the broad market in the past half-decade. The housing market’s recovery has taken longer than many had initially expected, but 2015 has shown a few signs that it may be gaining traction.

U.S. Housing Heats Up

New home sales have picked up in the last few months, with a report just this morning showing another positive movement in April. Also, the S&P Case-Shiller Home Price Index has been off to a strong start this year and has performed even better over the trailing 12 months.

Housing starts and existing home sales have been relatively mixed, with a few weak and strong periods scattered over the last few months. For now, investors and the overall market seem more intrigued with the aforementioned two statistics rather than the starts and existing sales.

Obviously, the move in XHB is partly attributed to a six-year plus bull run on Wall Street that has injected confidence back into the economy, allowing housing markets to make such a move. For as long as the bull run continues, the housing market is poised to do the same.

The Bottom Line

XHB and the housing market will be particularly under the gun later this year, as the Fed has hinted that its first rate raise in quite some time will come before the start of 2016. Markets are expected to react poorly to a rate raise, but mostly on the psychological end of things. Investors will certainly want to keep an eye on the trading activity in funds like XHB when that time comes, as it could prove to be something of an emotion-based sell-off.

Follow me on Twitter @JaredCummans.

[For more ETF analysis, make sure to sign up for our free ETF newsletter]

Disclosure: No positions at time of writing.

» Popular Pages

  • Tickers
  • Articles

May 25

The Thread Grows Larger as Needle Shrinks

May 25

Yahoo Finance: Dave Nadig Talks Alternative Allocations

May 25

ETF Leaders Powered by the NYSE: Gunjan Chauhan

May 25

Gold Could Reach $5,000 by 2030

May 25

SEC Considers Stricter ESG Disclosure Requirements

May 25

Best & Worst Monthly Performers: May 25 Edition

May 25

Canterbury: May Market Video

May 25

Ethereum's Long-Term Allure Is Evident

May 25

Insurers Own More ETFs Than You Think

May 25

Focus on FMET for Metaverse Equity Bargains

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

ARKK

ARK Innovation ETF

XLE

Energy Select Sector SPDR...

DBA

Invesco DB Agriculture Fund

VTI

Vanguard Total Stock Market...

VGT

Vanguard Information...

WEAT

Teucrium Wheat Fund

SCHD

Schwab US Dividend Equity ETF...


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

Equity ETF Channel

Retirement Portfolio Redux: Is the 60%-40% Portfolio Dead?

Debbie CarlsonOct 22, 2020
2020-10-22

With the 10-year U.S. Treasury yield hovering below 1% and Federal Reserve Chairman Jerome Powell...

Equity ETF Channel

Portfolio Diversification Isn't Dead, It Was Just Sleeping

Debbie CarlsonOct 15, 2020
2020-10-15

Investors could be forgiven to think there was no reason to invest outside of the U.S. for the...

}
X