Time to Buy Homebuilders?
There are three ETFs related to building and construction (XHB, ITB, and PKB). I think it is time to take a deeper look at this industry, especially when it is at its 52-week low as of today. The top five homebuilders are at its 52-week lows.
XHB (SPDR S&P Homebuilders ETF) seeks to replicate as closely as possible the total return performance of the S&P Homebuilders Select Industry Index (the Homebuilders Index). This ETF is an equal-weighted index. It has approximately 20 components, which are updated quarterly. Currently its total asset value is $200 million. Its average daily volume is over 3 million shares per day. Its management fee is 0.35%.
ITB (iShares Dow Jones U.S. Home Construction Index Fund) seeks investment results that correspond generally to the price and yield performance of the Dow Jones U.S. Select Home Builders Index. The index is a free-float adjusted market capitalization-weighted index. The Index includes companies that are constructors of residential homes, including manufacturers of mobile and pre-fabricated homes. Its total asset is $100 million. Its management fee is 0.48%. Its trading volume is about 200K shares per day, which is much less than that of XHB.
PKB (PowerShares Dynamic Building & Construction Portfolio) seeks investment results that correspond to the price and yield of an equity index called the Dynamic Building & Construction Index. The Index consists of stocks of 30 United States building and construction companies. These are companies that are engaged in providing construction and related engineering services for building and remodeling residential properties, commercial or industrial buildings, or working on large-scale infrastructure projects, such as highways, tunnels, bridges, dams and airports.
I personally like PKB due to its dynamic approach to the market. Its components are changed quarterly based on some intelligent analysis of the component stocks. However, its current asset is only $20 million and its trading volume is about 30K per day, which is much less than that for XHB or ITB.
There is some difference among PKB and XHB or ITB. XHB and ITB are related mostly to the single family housing while PKB is related to all building and construction companies including single family housing and commercial building and infrastructure building as well. There are a lot of negative news reports about the home building industry. However there is some light like Toll Brothers may consider expanding its operations in China.
If I were to purchase some shares in this category, I would buy XHB for its dominant positions in this category of ETFs.
XHB (SPDR S&P Homebuilders ETF) seeks to replicate as closely as possible the total return performance of the S&P Homebuilders Select Industry Index (the Homebuilders Index). This ETF is an equal-weighted index. It has approximately 20 components, which are updated quarterly. Currently its total asset value is $200 million. Its average daily volume is over 3 million shares per day. Its management fee is 0.35%.
ITB (iShares Dow Jones U.S. Home Construction Index Fund) seeks investment results that correspond generally to the price and yield performance of the Dow Jones U.S. Select Home Builders Index. The index is a free-float adjusted market capitalization-weighted index. The Index includes companies that are constructors of residential homes, including manufacturers of mobile and pre-fabricated homes. Its total asset is $100 million. Its management fee is 0.48%. Its trading volume is about 200K shares per day, which is much less than that of XHB.
PKB (PowerShares Dynamic Building & Construction Portfolio) seeks investment results that correspond to the price and yield of an equity index called the Dynamic Building & Construction Index. The Index consists of stocks of 30 United States building and construction companies. These are companies that are engaged in providing construction and related engineering services for building and remodeling residential properties, commercial or industrial buildings, or working on large-scale infrastructure projects, such as highways, tunnels, bridges, dams and airports.
I personally like PKB due to its dynamic approach to the market. Its components are changed quarterly based on some intelligent analysis of the component stocks. However, its current asset is only $20 million and its trading volume is about 30K per day, which is much less than that for XHB or ITB.
There is some difference among PKB and XHB or ITB. XHB and ITB are related mostly to the single family housing while PKB is related to all building and construction companies including single family housing and commercial building and infrastructure building as well. There are a lot of negative news reports about the home building industry. However there is some light like Toll Brothers may consider expanding its operations in China.
If I were to purchase some shares in this category, I would buy XHB for its dominant positions in this category of ETFs.
posted by Unknown at 10:22 AM
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