Home construction ETF hits record trading high and doubles the returns of the S&P 500
Dec. 07, 2021 8:41 AM ETiShares U.S. Home Construction ETF (ITB), XHB, PKB, NAILSPY, NVR, DHI, LENBy: Jason Capul, SA News Editor2 Comments
- The iShares U.S. Home Construction ETF (BATS:ITB) hit an all-time trading high on Monday and has now topped new levels in Tuesday’s pre-market trading. ITB is +1.8% and has touched $82.37 a share.
- ITB has rallied +47.8% YTD, which is more than double of the benchmark SPDR S&P 500 Trust ETF (NYSEARCA:SPY) which has returned +22.7% YTD.
- ITB is an ETF that provides exposure to the U.S. homebuilding industry and manufacturing of residential homes. The fund has top-weighted exposure in stocks such as D.R. Horton (NYSE:DHI) at 14.2%, Lennar Corporation (NYSE:LEN) weighted at 13.17%, and NVR (NYSE:NVR), which has a weighting of 7.91%.
- Moreover the fund is equipped with $3B assets under management and an expense ratio of 0.41%.
- ITB has been supported by the continued demand for new home development amongst global supply chain issues.
- ITB is not the only homebuilder exchange traded fund rising to the top. The SPDR Homebuilders ETF (NYSEARCA:XHB), Invesco Dynamic Building & Construction ETF (NYSEARCA:PKB), and Direxion Daily Homebuilders & Supplies Bull 3x Shares ETF (NYSEARCA:NAIL) are three other home building funds that are flirting with record trading highs as well.
- From a year-to-date return stance, XHB is +46.1%, PKB +29.7%, and the 3X leveraged NAIL is +151.6%. In identifying what the future holds for these four home builder ETFs see below Seeking Alpha’s momentum analysis.