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The condition of houses in an area ravaged by a massive storm and the worst deluge in about 50 years can well be imagined. Right now, Texas is bearing out the nightmarish Category 3 Hurricane Harvey, which is expected to pour about 50 inches of rain over Houston this week.

As per the source, flooding is expected to last for some days and take neighboring Louisiana in its grip too. Needless to say, several corners of the investing world have benefited or lost from this massacre. Among the losers, insurance seems to be at the forefront while oil refiners – clustered in Texas – are expected to be the greatest beneficiaries on higher gasoline prices (read: Hurricane Harvey Puts These ETF Areas in Focus).

But what about the other less-celebrated investing areas that will be hugely benefited as and when Harvey retreats?

Home Improvement Retailers: Promising Right Now

AsHurricane Harvey is expected to devastate several houses, the need for rearranging houses would be higher, post storm. This necessity will boost demand for companies that operate as retailers of home improvement products.

These companies includeHome Depot (HD - Free Report) and Lowe's Companies Inc. (LOW - Free Report) . The companies cater to do-it-yourselfers, as well as home improvement, construction and building maintenance or remodeling professionals.

"Home Depot will most certainly see a financial benefit from Hurricane Harvey, just as it did from Hurricane Sandy back in 2013," according Neil Saunders, managing director of GlobalData Retail, quoted on Reuters.

As per the source, Lowe’s, which has about 90 stores in the Harvey-prone areas, turned on its 24/7 emergency command center located in North Carolina. The company has started transporting bottled waters to help customers distressed by the storm. As per a Home Depot spokesperson, the retailer’s merchandising and supply-chain teams also jumped on the bandwagon to send necessary supplies to the affected region.

The companies are doing everything to stock up and keep their shutters open. The Zacks Industry Rank of both companies is in the top 39% and both stocks have a VGM (Value, Growth, Momentum) score of A. HD and LOW gained over 1% and 0.6%, respectively, on August 28, 2017.

ETFs to Buy

While targeting these stocks could be a way to gain profits, an ETF route is a safer way to play those home improvement retailers. Since the ETF mode offers the basket approach, it rules out stock-specific risks.

Below we highlight ETFs that are heavy on Home Depot and Lowe’s Companies.

Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)

The fund puts 7.1% weight in Home Depot and 2.5% weight in Lowe’s. The fund has a Zacks Rank #3 (Hold).

First Trust Nasdaq Retail ETF (FTXD - Free Report)

The Nasdaq US Smart Retail Index is a modified factor weighted index, designed to provide exposure to US companies within the retail industry. Home Improvement Retailers take about 11.1% of the fund, with Home Depot accounting for about 8.5%. The fund has a Zacks ETF Rank #2 (Buy).

VanEck Vectors Retail ETF (RTH - Free Report)

Lowe's (5.06%) and Home Depot (4.9%) get a place in the top 10 holdings of the Zacks Rank #2 fund (read: Solid Q2 Revenue Beat Fails to Boost Retail ETFs).

PowerShares Dynamic Building & Construction (PKB - Free Report)

Again here, Home Depot (4.86%) and Lowe's (4.59%) are in the top 10 holdings of the fund. The ETF has a Zacks Rank #2.

SPDR S&P Homebuilders ETF (XHB - Free Report)

HD (4.46%) and LOW (4.25%) make up over the 8% of the Zacks Rank #2 housing ETF (read: Weak 2H Start to Home Sales: ETFs to Buy on the Dip?).

iShares U.S. Home Construction ETF (ITB - Free Report)

Both stocks take up about 7% of the Zacks Rank #2 fund (read: DHI Beats But Housing ETFs Tumble: Why?).

iShares U.S. Consumer Services ETF (IYC - Free Report)

Both stocks occupy about 7.8% of the Zacks Rank #3 fund.

Guggenheim MSCI Global Timber ETF (CUT - Free Report)

Demand for wood should also perk up with rising sales of wood and other housing materials. This will likely help timber ETFs like CUT (read: Here's Why Timber ETFs Are on Fire).

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