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U.S. Home Construction ETF (ITB) Hits New 52-Week High

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For investors looking for momentum, iShares U.S. Home Construction ETF (ITB - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 153.2% from its 52-week low price of $22.39/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

ITB in Focus

This ETF seeks to track the investment results of an index composed of U.S. equities in the home construction sector. It has AUM of $2.24 billion and charges 42 basis points (bps) in annual fees.

Why the Move?

Low interest rates are boosting demand in the housing market, resulting in an increase in mortgage applications. Analysts believe support from the Federal Reserve is keeping rates at such low levels. Also, rising uncertainty related to the coronavirus outbreak is driving demand for safe-haven assets like U.S. Treasuries (per the Reuters article). This, in turn, will help drive consumer spending and demand in the housing market. This is making funds like ITB an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 58.30, which gives cues of further rally.

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