ETF News

Analyst tips ETFs to benefit from housing rebound

With stocks of US housing developers at a seven-month high, one analyst has called the bottom of the housing market - and recommended that investors use an exchange traded fund to capitalise on the sector's eventual rebound.

Speaking to Bloomberg, StockCharts.com chief technical analyst John Murphy said the HLX Housing Sector Index, which tracks 19 development and residential services companies, has climbed by 28 per cent since it hit a three-month low on July 8th.

Meanwhile, in the UK there are signs that the property market has bottomed out, with the Land Registry reporting a 0.1 per cent increase in average house prices during June and the latest figures from the Bank of England showing mortgage approvals for the same month stood at 47,584 loans worth a combined £6.2 billion.

This is higher than both May's figures and the previous six-month average.

In a research note published yesterday, Murphy said: "The worst is over."

He recommended that investors use an ETF to benefit from the recovery.

"The market has been anticipating that good news for months. Housing has better days to come," he added.