Pursuits
Housing ETF Aided by Short Covering to Rise With Rates: EcoPulse
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A four-month rally for housing-related stocks could continue even as interest rates rise and a lift by investors covering bearish bets fades.
The SPDR Standard & Poor’s Homebuilders Exchange-Traded Fund has outpaced the SPDR S&P 500 ETF by 14 percentage points since Oct. 15, as the stock-price ratio has risen from a nearly three-year low and is near the highest since April 2014 -- see chart. During the same period, short interest for the housing ETF has fallen 56 percent from a six-year peak -- see chart.