Homebuilder ETF’s Are Down As Home Sales Fall After Five Consecutive Increases

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October 28, 2009 11:39am ETF BASIC NEWS NYSE:ITB

houseforsale“The Commerce Department has just shown a report that new home sales for the month of September turned south.  This may increase the call for that first time home buyer


 $8,000.00 tax credit, but it also highlights that housing prices are not going to rocket higher and highlights just how sensitive the home-buyer sector of the economy is with or without a tax handout.  The report came in at 402,000 annualized units, down from the 417,000 annualized number for August and very far under the 440,000 expected according to Dow Jones and under the 440,000 expected from Bloomberg.  We are watching the SPDR S&P Homebuilders (NYSE: XHB) and the iShares Dow Jones US Home Construction (NYSE: ITB) ETFs fall in response.  DR Horton Inc. (NYSE: DHI) and Lennar Corp. (NYSE: LEN) are two of the hardest hit housing stocks today after the news,” Jon C. Ogg Reports From 247 Wall St.

“This comes on the heels of five consecutive increases, and that August figure is revised slightly lower.  Inventories shrank in the houses for sale September (251,000 vs. 261,000 in August), but the excess supply has hit housing prices by 9.1% from a year ago down to $204,800.00.  The Midwest was a large gain if you count anything around today’s level as positive with a 34% gain, but the Northeast was flat and there was a 10% drop in each the South and in the Western regions,” Ogg Reports.

See Full Story: HERE

Here’s a detailed look at the 2 ETF’s below:

The investment (XHB) seeks to replicate, net of expenses, the S&P Homebuilders Select Industry Index. The fund will invest at least 95% of assets in securities that comprise the index. The index represents the homebuilding sub-industry portion of the S&P TMI.

TOP 10 HOLDINGS (XHB) ( 47.67% OF TOTAL ASSETS)  
 
Company Symbol % Assets
D R HORTON INC (DHI) 4.45
LENNAR CP CL A (LEN) 6.03
MASCO CP (MAS) 4.63
N V R L P (NVR) 4.25
OWENS CORNING (OC) 5.94
PULTE HOMES, INC. (PHM) 4.6
RYLAND GROUP INC (RYL) 4.35
TOLL BROTHERS INC (TOL) 4.19
Universal Forest Products, Inc. (UFPI) 4.47
WILLIAMS SONOMA INC (WSM) 4.76

The investment (ITB) seeks investment results that tracks Dow Jones U.S. Select Home Construction index. The fund generally invests at least 90% of assets in securities of the Underlying index and depositary receipts representing securities of the Underlying index. It may invest the remainder of assets in securities not included in its Underlying index but which BGFA believes will help the fund track Underlying index, and in futures contracts, options on futures contracts, options and swaps as well as cash and cash equivalents, including shares of money market funds advised by BGFA. The fund is nondiversified.

TOP 10 HOLDINGS (ITB) ( 59.11% OF TOTAL ASSETS)  
 
Company Symbol % Assets
Cavco Industries, Inc. (CVCO) 4.64
D R HORTON INC (DHI) 7.51
HOME DEPOT INC (HD) 4.22
KB HOME (KBH) 4.78
LENNAR CP CL A (LEN) 6.32
LOWES COMPANIES (LOW) 4.06
M D C HOLDINGS (MDC) 4.44
N V R L P (NVR) 8.25
PULTE HOMES, INC. (PHM) 8.13
TOLL BROTHERS INC (TOL) 6.76

Chart for iShares Dow Jones US Home Construction (ITB)

GET A FREE TREND ANALYSIS FOR ANY ETF HERE!



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