Leveraged Bet on Homebuilders Is Surging in Hot Housing Market
- Homebuilders ETF from Direxion is rallying 38% since mid-July
- Direxion head of product sees gain as ‘contrarian opportunity‘
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The historically-tight American housing market is not yet done making winners out of investors placing leveraged bets on the prospects of homebuilders.
Down a month ago by almost 40% from an all-time high set in May, the Direxion Daily Homebuilders & Supplies Bull 3X Shares ETF (NAIL) has surged 38% since. It’s still lower by more than 16% from its record, but remains up 100% in 2021. Homebuilders from D.R. Horton Inc. to Pulte Group Inc. have been able to pass on rising materials costs as demand among home buyers remains robust in a market starved for new construction.