PHLX Housing Sector Index (HGX)
Contents
Demystifying the PHLX Housing Sector Index (HGX)
Explore the intricacies of the PHLX Housing Sector Index (HGX), unraveling its composition, calculation methods, underlying components, and real-world impacts.
Understanding the PHLX Housing Sector Index (HGX)
Inception and Evolution:
Discover the origins of the HGX, its inception in January 2002, and subsequent developments such as its 2-for-1 split in February 2006 and synchronization of the total return index in June 2011.
Market Dynamics:
Uncover the relationship between home prices, construction contracts, and the HGX, delving into how market dynamics influence the index's performance.
Calculating the HGX Value
Methodology:
Learn about the two methods used to calculate the HGX value: the price return index and the total return index, and how they differ in accounting for cash dividends.
Real-Time Updates:
Understand how the index's value is recalculated throughout the trading day, ensuring up-to-date information for investors.
Underlying Components of the PHLX Housing Sector Index (HGX)
Component Analysis:
Explore the top underlying components of the HGX, including Armstrong World Industries, M.D.C. Holdings, and Weyerhaeuser Company, among others, and their significance in the index's performance.
Impact of External Factors
Interest Rate Fluctuations:
Examine the profound influence of interest rate changes on the HGX, as seen in the aftermath of Federal Reserve rate hikes in 2018 and the subsequent impact on new home sales.