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Homebuilder ETF (ITB) Hits New 52-Week High
For investors seeking momentum, iShares U.S. Home Construction ETF (ITB - Free Report) is probably on the radar. The fund just hit a 52-week high and moved up 54% from its 52-week low of $59.63 per share.
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 of where it might be headed:
ITB in Focus
iShares U.S. Home Construction ETF provides exposure to the U.S. companies that manufacture residential homes by tracking the Dow Jones U.S. Select Home Construction Index. It charges 40 bps in fees per year from investors (see: all the Industrial ETFs here).
Why the Move?
The homebuilding sector of the broad stock market has been an area to watch lately, given the decline in mortgage rates. US mortgage rates fell to the lowest level in almost four months last week, propelling the biggest demand for refinancing since February.
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, a weighted alpha of 49.10 and the 20-day volatility of 25.46% show that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.