Homebuilders – Still a Value Trap, But I am Going To Dabble

I have seen enough damage for now.

I have been watching the death spirals nicely from the sidelines, but I feel a good rally at hand.

I am going to stick with the Southwest geography with Meritage Homes (MTH) and a homebuilder ETF – please let me know some ETF symbols.

I know Steve from Meritage and we chatted with him a while back on Wallstrip . Steve should have bought First Solar (FSLR) and got into the Solar business when Meritage was in the 80’s :) .

He will figure it out for Meritage.

Disclosure – buying MTH


  1. Bhh says:

    There are some interesting home material stocks that seem to have bottomed already: EXP, CX, USG. I’d buy one if there was enough money lying around.

  2. I have found two ETF for housing:

    1) ITB, the Dow Jones U.S. Home Construction Index Fund. This is an iShares fund.

    The fund has 23 positions, reasonably well weighted. Here is the address for more info.


    2) XHB, the SPDR S&P Homebuilders ETF. This is run by State Street (SSGA).

    This fund has 21 positions, well balanced, but is not just home builders, but includes home related, so is not as pure a play. Here is the address for more info.


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