We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Darden Restaurants, Inc. (DRI) - free report >>
The Home Depot, Inc. (HD) - free report >>
PulteGroup, Inc. (PHM) - free report >>
Lennar Corporation (LEN) - free report >>
Williams-Sonoma, Inc. (WSM) - free report >>
NVR, Inc. (NVR) - free report >>
Can Housing ETFs Remain Red-Hot in 2021?
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 - Free Report) --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 - Free Report) , NVR (NVR - Free Report) and PulteGroup (PHM - Free Report) accounting for almost 45% of the portfolio.
The SPDR S&P Homebuilders ETF (XHB - Free Report) , is an equal-weighted ETF that includes building-products and home-furnishing companies as well in addition to homebuilders. Williams-Sonoma (WSM - Free Report) , RH (RH - Free Report) and Home Depot (HD - Free Report) 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.