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ITB - ETF AI Analysis
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iShares U.S. Home Construction ETF (ITB)
Rating:66Neutral
Price Target:―
Positive Factors
Strong Top Holdings
Several key positions, like DR Horton and PulteGroup, have delivered strong year-to-date performance, supporting the ETF’s overall returns.
Sector Focus on Growth
The ETF is heavily weighted in Consumer Cyclical stocks, which tend to perform well during periods of economic expansion.
Reasonable Expense Ratio
The fund’s expense ratio is relatively low, making it a cost-effective option for investors.
Negative Factors
High Geographic Concentration
The ETF is almost entirely focused on U.S. companies, limiting exposure to international markets and diversification.
Mixed Performance Among Holdings
Some top holdings, such as Lennar and Lennox International, have underperformed year-to-date, dragging on the fund’s momentum.
Sector Overweight Risk
With over 70% of its exposure in Consumer Cyclical stocks, the ETF is vulnerable to downturns in the housing and construction industries.
ITB vs. SPDR S&P 500 ETF (SPY)
AUM2.63B
RegionNorth America
Expense Ratio0.38%
Beta0.81
IssueriShares
Inception DateMay 01, 2006
Dividend Yield1.5%
Asset ClassEquity
Index TrackedDJ US Select / Home Construction
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume2,418,810
30 Day Avg. Volume2,373,988
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
112.10Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering48
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ITB Summary
The iShares U.S. Home Construction ETF (ITB) is an investment fund that focuses on the U.S. housing market, specifically companies involved in residential construction. It includes well-known homebuilders like DR Horton and Lennar, as well as related businesses such as Home Depot. This ETF is a good option for investors who want to benefit from the potential growth of the housing industry without picking individual stocks. However, it’s important to know that the ETF’s performance can be heavily influenced by changes in the housing market, such as interest rate fluctuations or economic downturns.
How much will it cost me?The iShares U.S. Home Construction ETF (ITB) has an expense ratio of 0.38%, which means you’ll pay $3.80 per year for every $1,000 invested. This expense ratio is slightly higher than average for ETFs because it is a sector-focused fund, which typically requires more active management compared to broad-market index funds.
What would affect this ETF?The iShares U.S. Home Construction ETF (ITB) could benefit from lower interest rates, which make mortgages more affordable and boost demand for housing, as well as demographic trends like population growth driving the need for new homes. However, rising interest rates, stricter housing regulations, or an economic slowdown could negatively impact the housing market and the ETF's performance, given its heavy exposure to homebuilders and related businesses in the U.S.
ITB Top 10 Holdings
The iShares U.S. Home Construction ETF (ITB) is heavily concentrated in U.S. homebuilders, with names like DR Horton and Lennar leading the charge. While DR Horton shows steady long-term growth, recent bearish signals and declining sales prices have weighed on its momentum. Lennar is also facing profitability challenges and mixed market conditions, holding back the fund’s performance. On the brighter side, PulteGroup has been a rising star, benefiting from strategic initiatives despite market headwinds. The ETF’s focus on consumer cyclical stocks ties its fate closely to the housing market’s ups and downs, making it a thematic play on U.S. residential construction.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| DR Horton | 15.11% | $402.97M | $45.78B | -7.48% | 66 Neutral | |
| Lennar | 10.02% | $267.14M | $33.24B | -24.60% | 64 Neutral | |
| PulteGroup | 8.75% | $233.40M | $24.87B | -6.55% | 70 Outperform | |
| NVR | 7.55% | $201.33M | $21.49B | -17.70% | 61 Neutral | |
| Toll Brothers | 4.80% | $127.91M | $13.54B | -14.71% | 78 Outperform | |
| Sherwin-Williams Company | 4.70% | $125.44M | $85.12B | -12.84% | 72 Outperform | |
| Lowe's | 4.44% | $118.36M | $135.50B | -11.56% | 63 Neutral | |
| TopBuild | 4.43% | $118.06M | $12.78B | 16.70% | 77 Outperform | |
| Home Depot | 4.21% | $112.32M | $353.87B | -16.79% | 66 Neutral | |
| Lennox International | 2.88% | $76.66M | $17.30B | -25.25% | 64 Neutral |
ITB Technical Analysis
Positive
―
Price Trends
102.33
Positive
104.01
Negative
98.51
Positive
Market Momentum
-0.80
Negative
61.95
Neutral
85.73
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ITB, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 98.21, equal to the 50-day MA of 102.33, and equal to the 200-day MA of 98.51, indicating a bullish trend. The MACD of -0.80 indicates Negative momentum. The RSI at 61.95 is Neutral, neither overbought nor oversold. The STOCH value of 85.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITB.
ITB Peer Comparison
Comparison Results
Performance Comparison
ITB
iShares U.S. Home Construction ETF
103.89
-17.92
-14.71%
PAVE
Global X U.S. Infrastructure Development ETF
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FDN
First Trust Dow Jones Internet Index Fund
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THRO
Ishares U.S. Thematic Rotation Active Etf
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―
―
USCA
Xtrackers MSCI USA Climate Action Equity ETF
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―
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XHB
SPDR S&P Homebuilders ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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