U.S. markets open in 3 minutes
  • S&P Futures

    4,070.25
    +11.50 (+0.28%)
     
  • Dow Futures

    33,522.00
    +14.00 (+0.04%)
     
  • Nasdaq Futures

    13,097.00
    +98.50 (+0.76%)
     
  • Russell 2000 Futures

    2,142.60
    +11.10 (+0.52%)
     
  • Crude Oil

    64.28
    -1.80 (-2.72%)
     
  • Gold

    1,817.30
    -5.50 (-0.30%)
     
  • Silver

    26.97
    -0.27 (-1.01%)
     
  • EUR/USD

    1.2088
    +0.0012 (+0.10%)
     
  • 10-Yr Bond

    1.6860
    -0.0090 (-0.53%)
     
  • Vix

    25.02
    +3.18 (+14.56%)
     
  • GBP/USD

    1.4028
    -0.0029 (-0.21%)
     
  • USD/JPY

    109.5790
    -0.0810 (-0.07%)
     
  • BTC-USD

    49,735.32
    -6,157.57 (-11.02%)
     
  • CMC Crypto 200

    1,346.97
    -216.86 (-13.87%)
     
  • FTSE 100

    6,916.67
    -87.96 (-1.26%)
     
  • Nikkei 225

    27,448.01
    -699.50 (-2.49%)
     

Can Housing ETFs Remain Red-Hot in 2021?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Neena Mishra
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Housing is one of the few red-hot areas of 2020 that has remained strong this year. Record low mortgage rates and migration from cities to suburbs are among the main reasons for the housing boom.

Pandemic fueled demand sent 2020 existing homes sales to their highest level since 2006, according to the National Association of Realtors. While sales of existing and new homes were down slightly in in February, many believe that those drops were probably due to bad weather.

The current housing rally is more stable than the previous one as buying is being driven by real demand rather than speculation. Further, lending standards are tighter, and buyers are putting down more cash.

The most popular homebuilder ETF--the iShares U.S. Home Construction ETF (ITB)--is a market cap weighted ETF of home construction and related stocks. It is top heavy with four holdings D.R. Horton (DHI), Lennar (LEN), NVR (NVR) and PulteGroup (PHM) accounting for almost 45% of the portfolio.

The SPDR S&P Homebuilders ETF (XHB), is an equal-weighted ETF that includes building-products and home-furnishing companies as well in addition to homebuilders. Williams-Sonoma (WSM), RH (RH) and Home Depot (HD) are among its top holdings.

To learn more about these ETFs, please watch the short video above.
 

Want key ETF info delivered straight to your inbox?

Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.  Get it free >>

Disclosure: Neena owns shares of XHB in the ETF Investor Portfolio.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
The Home Depot, Inc. (HD) : Free Stock Analysis Report
 
Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
 
PulteGroup, Inc. (PHM) : Free Stock Analysis Report
 
NVR, Inc. (NVR) : Free Stock Analysis Report
 
RH (RH) : Free Stock Analysis Report
 
WilliamsSonoma, Inc. (WSM) : Free Stock Analysis Report
 
Lennar Corporation (LEN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report