Homebuilders Exchange-Traded Funds

You can own a basket of homebuilders and related stocks with four low-fee exchange-traded funds (ETFs). The purest homebuilders play is iShares Dow Jones U.S. Home Construction (ITB) which holds only homebuilders.

With the current turmoil in the housing industry, these ETFs give investors a diversified play on the homebuilders. Even if one or two holdings of an ETF goes really bad, the entire ETF will not collapse.

But like individual homebuilding stocks, these homebuilding ETFs are on the price downside, so be cautious with them.

Homebuilders Exchange-Traded Funds
ETF	Symbol	Holdings
Homebuilders SPDR	XHB	Mostly homebuilders.
FocusShares ISE Homebuilders Index Fund	SAW	Homebuilders and prefabricated house manufacturers. Listed on November 30, 2007.
iShares Dow Jones U.S. Home Construction	ITB	Only Homebuilders.
PowerShares Dynamic Building & Construction	PKB	Homebuilders, heavy equipment, home improvement and other stocks.

Related Articles:

Current Prices of Homebuilding Stocks
Home Building Charts Foretold Price Downside
Small Cap Home Building Stocks Suffer Huge Losses

Updated December 7, 2007.