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Homebuilder ETF (ITB) Hits New 52-Week High

Sweta Killa

For investors seeking momentum, iShares U.S. Home Construction ETF ITB is probably on radar. The fund just hit a 52-week high and is up about 54.1% from its 52-week low price of $31.79/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

ITB in Focus    

ITB offers exposure to U.S. companies that manufacture residential homes with heavy concentration on the top three firms. It charges investors 42 basis points a year in fees (see: all the Industrial ETFs here).

Why the Move?

The homebuilding industry has been an area to watch lately given the slew of upbeat data, which underscores continued momentum in the industry in 2020. U.S. housing starts spiked to the highest level since December 2006 while existing home sales jumped to the highest since February 2018 for the last month. Lower mortgage rates, slower home price growth, solid job growth and robust consumer confidence are driving the housing market higher though land and labor shortages are acting as headwinds.

More Gains Ahead?

Currently, ITB has a Zacks ETF Rank #3 (Hold) with a High risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, many of the segments that make up this ETF have a strong Zacks Industry Rank. So, there is definitely some promise for those who want to ride this surging ETF a little further.

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iShares U.S. Home Construction ETF (ITB): ETF Research Reports
 
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