A Fund To Leverage the Recovering Home Market

Home MarketThe U.S. home market has outperformed expectations in recent weeks. Despite the economy struggling from the effects of the Coronavirus Pandemic, home sales were up in June. Investors wanting to leverage the recovery can look to Exchange Traded Funds (ETFs).

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The iShares U.S. Home Construction ETF (US: ITB) is a popular option for investors at all levels. It tracks residential construction firms throughout the Dow Jones U.S. Select Home Construction Index. It is comprised of 44 unique stocks, although it is heavily weighted towards Lennar Corp. (NYSE: LEN) and D.R. Horton Inc. (NYSE: DHI), two of the highest performers in the industry.

The fund is actively managed, but with the fairly stable nature of the industry and the companies that operate within it, it has a low turnover rate. Because this fund directly tracks a Dow Jones index, it can see strong gains while the home market recovers. The 52-week range of $22.39 – $51.49 suggests that the price could increase in the coming weeks. If the home market continues to improve, it’s likely to break beyond its 52-week high.

In addition to price growth, this fund offers a yield of 0.47%. Any investor looking to benefit from the recovery in the home market should consider this for 2020.

Key Data:

  • Net Expense Ratio: 42%
  • Dividend Yield: 47%
  • Asset Turnover: 0%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

 

The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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