ETF Talk: Is Housing a Sturdy Investment?
Eagle Daily Investor – While last week’s ETF Talk explained how to capitalize on the housing rebound by investing in industrials, today’s article focuses more directly on how to profit from the recovery in housing. One exchange-traded fund (ETF) that is designed to take advantage of the recovery in housing is SPDR S&P Homebuilders (XHB). That fund is worth considering strongly due to an improving labor market and continuing low mortgage rates that are spurring home buying.
This non-diversified fund seeks investment results, before fees and expenses, which correspond to the total return performance of the homebuilding segment of a U.S. total market composite index.
After an astounding 52.52% increase in 2012, XHB has risen 4.49% so far this year. XHB also yields 0.97%, so it offers a bit of income along with the capital appreciation of its share price. In light of the Fed’s easy-money policies, further gains seem likely for housing and housing-related funds.