Is the SPDR S&P Homebuilders ETF Poised to Plunge?


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the SPDR S&P Homebuilders ETF (ASE: XHB) has received a distressing two-star ranking.

With that in mind, let's take a closer look at SPDR S&P Homebuilders ETF and see what CAPS investors are saying about the ETF right now.



January 2006

Total Net Assets

$1.8 billion

Investment Approach

Provides investment results that correspond generally to the total return performance of the S&P Homebuilders Select Industry. The S&P Homebuilders Select Industry represents the homebuilding sub-industry portion of the S&P Total Markets Index.

Expense Ratio


1-Year / 3-Year / 5-Year Annual Returns

53.9% / 19.4% / 6.1%

Dividend Yield



iShares Dow Jones US Home Construction (ASE: ITB)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 56% of the 138 All-Star members who have rated XHB believe the ETF will underperform the S&P 500 going forward.

Just last week, one of those Fools, warrenout, succinctly summed up the XHB bear case for our community:

We need this industry to recover. It's a little ahead of itself, though, with all the upside priced in already. And there are too few jobs, and too few citizens who will become qualified to be first time home buyers.

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The article Is the SPDR S&P Homebuilders ETF Poised to Plunge? originally appeared on

Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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