ITB iShares Dow Jones US Home Construction ETF


Jun 23, 2005
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iShares Dow Jones US Home Construction ETF

Expense Ratio: .47

YTD: 12.92
1 Month 6.24
3 Month 12.92
1 Year 63.27
3 Year 21.63
5 year 4.55

Morningstar has a 2 star rating on it and has it situated as a mid-cap blend. Its mainly holding home builders like Pulte and Lennar, but also has a couple retail stocks like HD and Lowes. It was up over 78% in 2012, and currently trading at 22.54 which is not even half of its high over $50 in 2006.

My take: It may seem that after nearly a 79% 2012 return on this fund that you'd be crazy to buy now. Low interest rates have fueled the recover as inventory is down and home prices are up. If interest rates stay low for the next 18-24 months like most economist and analysts think, then what's to stop strong performance of this fund in that time period? I don't hold ITB now, but am thinking about grabbing a small slice of it or one of its competitors (XHB, PKB) for the remainder of the year and perhaps longer.

What do you guys think?