Best ETF (High Volume): iShares Dow Jones U.S. Home Construction Index Fund/SPDR S&P Homebuilders ETF
It’s impossible to avoid housing-related ETFs in the first quarter. Whether you’re talking about the iShares Dow Jones U.S. Home Construction Index Fund (NYSE:ITB) or the SPDR S&P Homebuilders ETF (NYSE:XHB), anything to do with the ongoing housing rebound did well in Q1.
With almost identical performance in the first quarter, the real difference between the two funds has come during the past 52 weeks, where the ITB achieved an annual return of almost 65%. The difference: the iShares fund is 65% invested in home construction, compared to 29% for the SPDR.
I’d expect the XHB to make up ground in the coming quarters as investors rotate out of home construction stocks.