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Biotech, Homebuilder ETFs in Multiyear Breakouts

tlydon@globaltrend.com (Tom Lydon)

ETFs tracking homebuilder and biotech stocks are the top-performing sectors in 2012 as the funds break out to multiyear highs.

The iShares Dow Jones US Home Construction Index Fund (ITB - News) is up 42.6% year to date to lead all sector funds. SPDR S&P Homebuilders (XHB - News) is another ETF indexed to residential housing stocks. [Homebuilder ETF at Highest Level Since 2008]

Investors in builder ETFs are looking for a bottom in the housing market after the subprime meltdown.

SPDR S&P Biotech (XBI - News) and First Trust NYSE Arca Biotech (FBT - News) are up 39.6% and 38.5% so far this year, respectively, according to investment researcher Morningstar. [Biotech ETF Breakout]

Biotech ETFs are rising on a bullish outlook for the drug industry and investors positioning for consolidation in the sector. XBI was trading at a fresh lifetime high on Thursday.

Healthcare ETFs are also breaking out. [Healthcare ETFs Rise After Supreme Court Ruling on Obamacare]

iShares Dow Jones US Home Construction Index Fund

SPDR S&P Biotech