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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 mainly because many of its largest holdings—like Toll Brothers, NVR, and PulteGroup—show strong financial performance, reasonable valuations, and supportive growth strategies. However, weaker spots such as Lennar, along with several holdings facing bearish technical trends or high leverage, slightly weigh on the fund’s appeal. The main risk is its heavy concentration in U.S. homebuilders and related construction names, which makes the ETF sensitive to housing market cycles and interest rate changes.
Positive Factors
Strong Year-To-Date Performance
The ETF has delivered positive returns so far this year, showing resilience despite recent market ups and downs.
Leading Homebuilder Holdings
Several of the largest homebuilder stocks in the fund have shown strong gains, helping support overall performance.
Focused Industry Exposure
The fund’s concentration in U.S. home construction and related industries gives investors targeted exposure to a specific economic theme.
Negative Factors
High Stock Concentration
A small number of companies make up a large share of the portfolio, which increases the impact if any of these holdings struggle.
Mixed Performance Among Top Holdings
Some of the larger positions have shown weak or negative performance this year, which can drag on the ETF’s returns.
Narrow Sector and Geographic Focus
With most assets in U.S. consumer cyclical and related sectors, the fund is sensitive to downturns in the U.S. housing market and economy.

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, as well as large builders such as DR Horton. Someone might invest in ITB to bet on the long-term growth of U.S. housing and to get diversified exposure to many housing-related companies in a single fund. A key risk is that it is heavily tied to the housing market, which can rise and fall with interest rates and the economy.
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 riding the strength of America’s big homebuilders, with DR Horton and PulteGroup doing much of the heavy lifting as their shares have been rising on solid results and resilient housing demand. Toll Brothers is also adding some fuel, while TopBuild has been a standout recent winner, giving the fund an extra boost from the building-products side. On the flip side, Lennar, NVR, and home-improvement giants like Home Depot and Lowe’s have been more mixed to lagging, occasionally acting as a brake. Overall, this is a U.S.-only, housing-heavy bet, tightly tied to the home construction cycle.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
DR Horton15.92%$421.16M$45.34B27.29%
66
Neutral
PulteGroup9.14%$241.82M$24.30B25.25%
70
Outperform
Lennar7.46%$197.41M$23.09B-13.78%
59
Neutral
NVR6.71%$177.69M$18.07B-7.92%
70
Outperform
Toll Brothers5.18%$137.00M$13.89B45.73%
77
Outperform
TopBuild4.61%$122.07M$12.71B50.27%
68
Neutral
Sherwin-Williams Company4.49%$118.77M$83.67B1.17%
66
Neutral
Lowe's4.23%$112.05M$136.91B9.68%
69
Neutral
Home Depot4.08%$108.02M$334.56B-6.90%
66
Neutral
Lennox International3.26%$86.26M$17.09B-5.45%
64
Neutral

ITB Technical Analysis

Technical Analysis Sentiment
Negative
Last Price
Price Trends
50DMA
96.60
Negative
100DMA
100.22
Negative
200DMA
102.12
Negative
Market Momentum
MACD
0.50
Positive
RSI
45.91
Neutral
STOCH
6.18
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 96.14, equal to the 50-day MA of 96.60, and equal to the 200-day MA of 102.12, indicating a bearish trend. The MACD of 0.50 indicates Positive momentum. The RSI at 45.91 is Neutral, neither overbought nor oversold. The STOCH value of 6.18 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
$2.54B0.38%
67
Neutral
$8.06B0.57%
75
Outperform
$5.17B0.49%
72
Outperform
$4.04B0.30%
68
Neutral
$3.67B0.65%
69
Neutral
$1.63B0.35%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ITB
iShares U.S. Home Construction ETF
94.84
3.06
3.33%
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.
DisclaimerThis 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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