FYI: Here’s theme readers of this blog have heard before: many exchange-traded funds have similar-sounding names but are in fact wildly different in terms of complexion.
Thursday’s trading highlights stark differences between two competing niche ETFs, the $1.4 billion SPDR S&P Homebuilders ETF (XHB) and the $1.5 billion iShares US Home Construction ETF (ITB).
They sound pretty similar, right? Both have a similar assets stockpile and hold a similar number of stocks (36, 40, respectively) And yet these two ETFs are far, far apart when it comes to recent performance.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2016/06/09/is-my-homebuilder-stock-etf-really-a-retail-stock-etf-in-disguise/tab/print/
