TheStreet.com RealMoney

Homebuilding ETFs Are Still No Place to Be

By Don Dion

 About this article:
 The extension and expansion of the homebuyer tax credit will do little or nothing to boost the sagging fortunes of the homebuilder-exposed ETFs such as iShares Dow Jones U.S. Home Construction, SPDR Homebuilders and PowerShares Dynamic Building & Construction, though it may benefit banks. Over the past three months, these ETFs have underperformed the S&P 500 index, which was up 9.9% through yesterday's close. By comparison, ITB lost 4.1%, XHB added 0.1%, and PKB slid 0.7% As the Calculated Risk blog has pointed out in helpful graphical form, the ratio between existing- and new-home sales was fairly consistently in a range from about 5 to 7, between 1994 and 2007. After the bubble popped, new-home sales dropped faster than existing-home sales, and the ratio has expanded to nearly 14. The gap can be closed by a rise in new-home sales or a drop in...

You have just read the beginning of a premium article from our RealMoney Service. To read the rest of this article and sign up for a FREE trial please click below.

ACCESS STORY & START A FREE 14-Day Trial
Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET.
Outside the U.S. and in Canada, call 1-212-321-5200.



Already a RealMoney subscriber? LOG IN.
Username: Page data is submitted securely.
Password:
Forgot your Password? Click here


100% Money-Back Guarantee
If you decide to subscribe and you're not completely satisfied with TheStreet.com RealMoney, just call us within the first 30 days of your subscription and we'll refund your full annual subscription price — guaranteed.




If you choose a 14-day free trial of RealMoney and you do NOT call to cancel within those 14 days, you will pay $129.95 — a $100 savings off the regular annual subscription price of $229.95. Unless you cancel before the end of that year, your subscription will automatically renew for another year at the then-current subscription price.

Offer applies only to new annual subscriptions, and is subject to change at any time. Void where prohibited.

If you choose a monthly subscription, you pay $34.95 per month. You will be notified if the current monthly rate of $34.95 changes at any time in the future.

TheStreet.com is a publisher. None of the contributors or their affiliates will provide you with personally tailored advice concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. From time to time, any or all of the contributors or their affiliates may hold positions in securities mentioned and they may trade for their own accounts. In cases where the position is held at the time of publication, appropriate disclosure is made.

© TheStreet.com, Inc., 14 Wall Street, 15th Floor, New York, NY 10005.