ITB - ETF AI Analysis
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iShares U.S. Home Construction ETF (ITB)
ITB, the iShares U.S. Home Construction ETF, has a solid overall rating driven mainly by strong homebuilder holdings like Toll Brothers, NVR, and PulteGroup, which benefit from robust financial performance and supportive valuations. However, weaker names such as Lennar and Masco, along with leverage and sales challenges at some holdings, slightly weigh on the fund. The main risk factor is its heavy concentration in the U.S. home construction and related building products sector, which makes the ETF sensitive to housing market cycles and interest rate changes.
ITB vs. SPDR S&P 500 ETF (SPY)
- AUM
- 2.35B
- Region
- North America
- Expense Ratio
- 0.37%
- Beta
- 0.71
- Issuer
- iShares
- Inception Date
- May 01, 2006
- Dividend Yield
- 1.30%
- Asset Class
- Equity
- Index Tracked
- DJ US Select / Home Construction
ITB Summary
ITB is the iShares U.S. Home Construction ETF, which follows the DJ US Select Home Construction index and focuses on the U.S. housing theme. It mainly holds companies that build homes or sell building materials and home improvement products. Well-known names in the fund include DR Horton and Home Depot. Investors might consider ITB if they want growth potential tied to the U.S. housing market and a simple way to spread their money across many homebuilding stocks instead of picking just one. A key risk is that it is heavily tied to the housing sector, so its value can rise or fall sharply with changes in the housing market and interest rates.
How much will it cost me?
ITB has an annual expense ratio of 0.37%, which means you’ll pay about $3.70 per year for every $1,000 invested. This cost is a bit higher than the average broad stock index ETF because ITB is a more specialized, sector-focused fund that requires extra research and management to track the U.S. home construction industry.
What would affect this ETF?
ITB could benefit if U.S. mortgage rates fall, housing demand stays strong, or government policies support homebuilding, which would help major homebuilders and related companies like DR Horton, PulteGroup, Lennar, and Home Depot. On the downside, higher interest rates, a slowdown in the U.S. economy, or tighter housing regulations could hurt the home construction and consumer cyclical sectors that dominate this fund.
ITB Top 10 Holdings
ITB is essentially a bet on U.S. homebuilders, with DR Horton and PulteGroup steering the ship. PulteGroup has been a bright spot lately, rising while peers like Lennar and NVR have been losing steam and weighing on the fund. Toll Brothers is holding up reasonably well, offering a steadier note in an otherwise choppy builder lineup. On the retail side, Home Depot and Lowe’s have shown mixed momentum, adding some balance but not fully offsetting the laggards. Overall, this is a U.S.-only, housing-heavy play with performance driven by a handful of big names.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 DHI | DR Horton | 17.94% | $441.20M | $40.84B | 2.58% | 66Neutral |
 PHM | PulteGroup | 11.34% | $278.95M | $22.96B | 9.53% | 70Outperform |
 LEN | Lennar | 8.12% | $199.80M | $20.65B | -26.46% | 59Neutral |
 NVR | NVR | 7.31% | $179.75M | $15.88B | -13.12% | 70Outperform |
 TOL | Toll Brothers | 4.74% | $116.47M | $13.45B | 13.63% | 77Outperform |
 HD | Home Depot | 4.46% | $109.62M | $328.44B | -10.13% | 66Neutral |
 LOW | Lowe's | 4.46% | $109.58M | $117.30B | -8.39% | 69Neutral |
 SHW | Sherwin-Williams Company | 4.46% | $109.63M | $80.35B | 2.15% | 66Neutral |
 MAS | Masco | 3.39% | $83.31M | $15.54B | 28.95% | 53Neutral |
 IBP | Installed Building Products | 2.42% | $59.46M | $5.67B | -11.20% | 74Outperform |
ITB Technical Analysis
Price Trends
Market Momentum
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 96.97 is above the 20-day moving average (MA) of 87.39, above the 50-day MA of 89.43, and above the 200-day MA of 95.27, indicating a neutral trend. The MACD of 0.73 indicates Negative momentum. The RSI at 60.78 is Neutral, neither overbought nor oversold. The STOCH value of 81.32 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
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| ITB | $96.97 | $101.00(4.16% Upside) | $2.35B | 0.37% | 67Neutral |
 THRO | $42.63 | $53.93(26.51% Upside) | $7.34B | 0.57% | 74Outperform |
 FDN | $263.13 | $366.14(39.15% Upside) | $4.78B | 0.49% | 72Outperform |
 JTEK | $91.64 | $128.54(40.26% Upside) | $4.28B | 0.65% | 68Neutral |
 IFRA | $58.64 | $67.51(15.13% Upside) | $4.07B | 0.30% | 68Neutral |
 XHB | $104.58 | $116.52(11.41% Upside) | $1.64B | 0.35% | 69Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ITB | iShares U.S. Home Construction ETF | 96.97 | -0.53 | -0.55% | |
| THRO | Ishares U.S. Thematic Rotation Active Etf | 42.63 | 4.40 | 11.51% | |
| FDN | First Trust Dow Jones Internet Index Fund | 263.13 | -13.89 | -5.01% | |
| JTEK | JPMorgan U.S. Tech Leaders ETF | 91.64 | -1.92 | -2.05% | |
| IFRA | iShares U.S. Infrastructure ETF | 58.64 | 7.33 | 14.27% | |
| XHB | SPDR S&P Homebuilders ETF | 104.58 | 2.24 | 2.19% |
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.