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ITB - ETF AI Analysis

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ITB

iShares U.S. Home Construction ETF (ITB)

Rating:67Neutral
Price Target:
ITB, the iShares U.S. Home Construction ETF, earns a solid overall rating driven mainly by strong homebuilder holdings like Toll Brothers and NVR, which benefit from robust financial performance, positive technical trends, and effective growth strategies. However, names like Lennar and Lennox International, which face profitability, cash flow, and bearish technical pressures, along with leverage and valuation concerns across several holdings, introduce risk. The fund is also heavily concentrated in the U.S. home construction and related building products sector, so it is particularly sensitive to housing market cycles and construction demand.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and over the past month, indicating positive momentum in the home construction theme.
Leading Homebuilder Holdings
Several of the largest positions in major homebuilders and related companies have delivered strong year-to-date results, helping support the fund’s overall performance.
Targeted Industry Exposure
The fund focuses heavily on U.S. home construction and related industries, giving investors a concentrated way to benefit when this segment of the economy is doing well.
Negative Factors
High Industry Concentration
With most assets in consumer cyclical homebuilding and related names, the ETF is vulnerable to downturns in the housing market and economic slowdowns.
Top Holdings Dominate
A small group of companies makes up a large share of the portfolio, which increases the impact that any weakness in these individual stocks can have on the fund.
U.S.-Only Exposure
Almost all of the ETF’s holdings are in U.S. companies, offering little geographic diversification if the U.S. housing market faces pressure.

ITB vs. SPDR S&P 500 ETF (SPY)

ITB Summary

The iShares U.S. Home Construction ETF (ITB) tracks the DJ US Select Home Construction index, focusing on companies tied to the U.S. housing market. It mainly holds homebuilders and related businesses, including well-known names like Home Depot and Lowe’s, along with large builders such as DR Horton and Lennar. Someone might invest in ITB to bet on long-term growth in U.S. housing and to get a basket of housing-related stocks in one trade. A key risk is that it is heavily concentrated in the housing sector, so it can rise or fall sharply with the housing market and interest rates.
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

ITB is essentially a pure play on U.S. homebuilding, with DR Horton, Lennar, PulteGroup, NVR, and Toll Brothers steering the ship. Among them, PulteGroup and Toll Brothers look relatively steady, while DR Horton and Lennar have been more mixed, rising lately but still wrestling with softer demand and cancellations. The fund also leans on home-improvement giants Lowe’s and Home Depot, plus TopBuild and Sherwin-Williams, which have been rising and adding some extra lift. Overall, this is a U.S.-centric bet on the housing cycle, not a broadly diversified mix.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
DR Horton14.30%$398.77M$43.12B4.89%
66
Neutral
PulteGroup8.55%$238.53M$24.38B9.94%
70
Outperform
Lennar8.28%$230.82M$26.76B-16.68%
59
Neutral
NVR7.61%$212.09M$21.68B-4.75%
70
Outperform
Sherwin-Williams Company4.87%$135.82M$87.91B-0.98%
66
Neutral
Lowe's4.86%$135.57M$149.81B2.70%
69
Neutral
Home Depot4.78%$133.16M$372.91B-9.08%
66
Neutral
Toll Brothers4.69%$130.70M$13.73B6.39%
77
Outperform
TopBuild4.60%$128.37M$13.14B36.58%
68
Neutral
Lennox International3.14%$87.67M$17.36B-16.43%
64
Neutral

ITB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
101.56
Positive
100DMA
102.91
Negative
200DMA
99.87
Positive
Market Momentum
MACD
0.75
Positive
RSI
46.15
Neutral
STOCH
12.01
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ITB, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 104.18, equal to the 50-day MA of 101.56, and equal to the 200-day MA of 99.87, indicating a neutral trend. The MACD of 0.75 indicates Positive momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of 12.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ITB.

ITB Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.83B0.38%
$7.40B0.57%
$6.41B0.49%
$3.52B0.30%
$3.39B0.65%
$1.73B0.35%
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ITB
iShares U.S. Home Construction ETF
102.03
-1.63
-1.57%
THRO
Ishares U.S. Thematic Rotation Active Etf
FDN
First Trust Dow Jones Internet Index Fund
IFRA
iShares U.S. Infrastructure ETF
JTEK
JPMorgan U.S. Tech Leaders ETF
XHB
SPDR S&P Homebuilders ETF
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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