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Exchange-traded funds linked to the housing and real estate sectors rose at the start of trading on Tuesday, after a new report showed that while home prices continued to fall, the decline was in line with what the experts had said. foretold.
The Case-Shiller Index report for November declined for the fifth consecutive month, and the 20-city home price index fell 0.5% per month. This coincided with the decline that economists predicted.
Broad spectrum real estate ETFs that offer exposure to US equity REITs and real estate firms such as Vanguard Real Estate Index Fund (NYSEARCA:VNQ), Real Estate Select Sector SPDR Fund (NYSEARCA:XLRE), and the iShares US Real Estate ETF (NYSEARCA: IYR) each climbed more than 0.9%.
At the same time, gains were also seen among homebuilder-based ETFs and residential real estate funds. Those names include iShares US Home Construction ETF (ITB) +2.8%SPDR S&P Homebuilders ETF (XHB) +2.6%iShares Residential and Multisector Real Estate ETF (REZ) +1.3%and the iShares Mortgage Real Estate Capped ETF (BATS:REM) +1.6%.
Giving names like ITB and XHB a boost are shares of PulteGroup (PHM), which lists itself as one of the top five holdings within both exchange-traded funds. At first and PHM won 8.1%.
In broader financial news, the averages of the major markets rose on Tuesday after a wave of other economic data.
