Designed to provide broad exposure to the Consumer Discretionary - Broad segment of the equity market, the iShares U.S. Home Construction ETF (ITB Quick QuoteITB - Free Report) is a passively managed exchange traded fund launched on May 1, 2006.

While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.

Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 14, placing it in bottom 13%.

Index Details

The fund is sponsored by Blackrock. It has amassed assets over $2.69 billion, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. ITB seeks to match the performance of the Dow Jones U.S. Select Home Construction Index before fees and expenses.

The Dow Jones U.S. Select Home Construction Index comprises of U.S. equities in the home construction sector.

Costs

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.38%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 0.57%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Consumer Discretionary sector -- about 78.5% of the portfolio. Industrials and Materials round out the top three.

Looking at individual holdings, D R Horton Inc (DHI) accounts for about 14.6% of total assets, followed by Lennar A Corp Class A (LEN) and Pultegroup Inc (PHM).

The top 10 holdings account for about 67.35% of total assets under management.

Performance and Risk

The ETF has lost about 1.31% so far this year and is down about 14.14% in the last one year (as of 12/09/2025). In that past 52-week period, it has traded between $85.52 and $117.19.

The ETF has a beta of 1.33 and standard deviation of 26.54% for the trailing three-year period, making it a high risk choice in the space. With about 51 holdings, it effectively diversifies company-specific risk.

Alternatives

iShares U.S. Home Construction ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. ITB, then, is not the best option for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. However, there are better ETFs in the space to consider.

Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $6.26 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $11.99 billion. VCR has an expense ratio of 0.09%, and XLY charges 0.08%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.