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For investors seeking momentum, SPDR S&P Homebuilders ETF (XHB - Free Report) is probably on radar. The fund hit a 52-week high, and is up about 115.4% from its 52-week low price of $23.95/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:
XHB in Focus
This ETF focuses on the homebuilding segment of the U.S. market. It has key holdings in the building products and homebuilding segments. XHB charges investors 35 basis points a year in fees and has top holdings in Whirlpool Corporation, Carrier Global and Trane Technologies (see: all the Industrial ETFs here).
Why the Move?
The homebuilding space has been an area to watch lately given that the housing market has been on fire. The S&P Homebuilders Select Industry Index reached a record high for the first time in 15 years early this week, having gained 12.8% this year and more than doubling from the low it reached in late March. Mortgage rates have been on a declining trend, slipping to new unprecedented lows on the Fed’s easy money policy. Record-low mortgage rates are encouraging people to buy more homes and have made refinance cheaper. This has make the homebuilder space a great place to stay invested in.
More Gains Ahead?
Currently, XHB has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
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Homebuilder 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 hit a 52-week high, and is up about 115.4% from its 52-week low price of $23.95/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:
XHB in Focus
This ETF focuses on the homebuilding segment of the U.S. market. It has key holdings in the building products and homebuilding segments. XHB charges investors 35 basis points a year in fees and has top holdings in Whirlpool Corporation, Carrier Global and Trane Technologies (see: all the Industrial ETFs here).
Why the Move?
The homebuilding space has been an area to watch lately given that the housing market has been on fire. The S&P Homebuilders Select Industry Index reached a record high for the first time in 15 years early this week, having gained 12.8% this year and more than doubling from the low it reached in late March. Mortgage rates have been on a declining trend, slipping to new unprecedented lows on the Fed’s easy money policy. Record-low mortgage rates are encouraging people to buy more homes and have made refinance cheaper. This has make the homebuilder space a great place to stay invested in.
More Gains Ahead?
Currently, XHB has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank, so there is definitely still some promise for those who want to ride on this surging ETF a little longer.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>