NEW YORK (TheStreet) --New home sales are on pace for their best month in nearly 10 years, CNBC's Brian Sullivan reported on Tuesday afternoon's "Power Lunch."

In light of the boom in the home sales, S&P Global equity chief investment officer Erin Gibbs, and Manhattan Venture Partners chief economist Maxx Wolff appeared on the program to discuss the largest home-builder ETF, the SPDR S&P Homebuilders ETF (XHB) - Get SPDR S&P Homebuilders ETF Report .

An ETF, or an exchange-traded fund, is an investment fund that is traded on stock exchanges. ETFs track an index, commodities, bonds, or a group of assets.

"There's a really big consumer discretionary component in this ETF, like Tempur Sealy (TPX), William-Sonoma (WSM), and Home Depot (HD). But, we like this ETF for a few reasons," Gibbs said.

The reasons, Gibs said, were the average upsides according to Wall Street analysts at about 9.5%, its valuations of 16 times forward earnings vs. just 18 for the S&P, and an average earnings growth of about 26%.

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"Again, a lot of that not just coming from your typical home builders, but from the expected rise in the consumer discretionary, one of the strongest sectors for that specialty retail. So across the board we think that this is a good value," Gibbs concluded.

Wolff, however, remained more cautiously optimistic than Gibbs regarding the ETF.

"This is pretty reasonable and a nice risk/reward tradeoff if you want to buy basic consumer resiliency and macro stability. Not sure you want to buy those things but if you do, this is a good risk-adjusted way to do it. There's still a lot of interest rate sensitivity here, and you're betting that the consumer stays robust into the fall," Wolff explained.

Shares of the SPDR S&P Homebuilders (ETF) closed higher during trading on Tuesday.

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