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Lowe's Companies, Inc. (LOW) - free report >>
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Homebuilding ETF (XHB) Hits New 52-Week High
For investors seeking momentum, SPDR S&P Homebuilders ETF (XHB - Free Report) is probably on radar. The fund just hit a 52-week high and is up about 50.9% from its 52-week low price of $55.73/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SPDR S&P Homebuilders ETF in Focus
The underlying S&P Homebuilders Select Industry Index represents the homebuilding sub-industry portion of the S&P Total Markets Index. The S&P TMI tracks all the US common stocks listed on the NYSE, AMEX, NASDAQ National Market and NASDAQ Small Cap exchanges. The Homebuilders Index is a modified equal weight index. The product charges 35 basis points in annual fees.
Why the Move?
The U.S. housing sector has been an area to watch lately, given the immense demand and rising home prices. The latest jump in XHB was the result of the upbear earnings report from Home Depot (HD - Free Report) , which acted as a cornerstone for the entire home furnishing industry and the related stocks. This, in turn, gave a boost to XHB as the SPDR S&P Homebuilders ETF holds Williams-Sonoma (WSM - Free Report) , Lowe’s (LOW - Free Report) and Home Depot in its top-10 holdings.
More Gains Ahead?
The ETF XHB has a Zacks ETF Rank #2 (Buy). Plus, XHB should remain strong ahead given a positive weighted alpha of 45.58. As a result, there is definitely still some promise for investors who want to ride on this surging ETF.