Homebuilder ETFs: It’s What’s Inside That Matters
Monday, March 15th, 2010
Tom Lydon (ETF Trends) submits:
Real Estate. Thinking about the sector and its ETFs might be giving you mixed feelings. The sector has been beaten down and dragged around, but it also presents an opportunity for growth in the future.
The housing sector is highly cyclical and sensitive to economic and credit conditions. Homebuilding ETFs have rallied nicely in the last year, up more than 100% since the market’s March 9 low. That doesn’t mean, however, that they’re done struggling. It might continue to be a year of fits and starts for the sector as unemployment stays high and homeowners foreclose, but you can use ETFs to diversify and mitigate risk while you wait for that firm recovery.
