Mortgage rates fell for the second consecutive week, providing some relief to homebuyers during what is typically the busiest period for the housing market.
This has lent some support to homebuilder ETFs such as iShares U.S. Home Construction ETF (BATS:ITB), SPDR S&P Homebuilders ETF (NYSE:XHB), Invesco Dynamic Building & Construction ETF (NYSE:PKB) and Hoya Capital Housing ETF (NYSE:HOMZ).
As of Friday morning, ITB was up 0.7% while the other three funds were trading flat during the premarket session.
ETFs in Focus
ITB provides exposure to U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index. With Assets Under Management (AUM) of $2.6 billion, the fund charges 0.38% in annual fees and trades an average of 2.5 million shares a day. The fund has shed 2.3% year-to-date but gained 1.1% over the past month.
Benzinga Edge Stock Rankings indicate ITB has a weak pricing trend in short, medium and long term.
XHB follows the S&P Homebuilders Select Industry Index, charging investors 0.35% in annual fees. The fund has AUM of $1.5 billion and trades in an average daily volume …
This post was originally published here
