Homebuilders have rebounded strongly this year after concerns about an economic downturn and weak housing market had sent their shares plunging last year.
Recent housing data has been largely positive, thanks to falling mortgage rates, low unemployment and rising wages.
The most popular homebuilder ETF—the iShares U.S. Home Construction ETF (ITB - Free Report) is a market cap weighted ETF of home construction stocks.
Top holdings--D.R. Horton (DRI - Free Report) , Lennar Corporation (LEN - Free Report) and NVR (NVR - Free Report) —account for almost 36% 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. Home Depot (HD - Free Report) and Whirlpool (WHR - Free Report) are among its top holdings.
To learn more about these ETFs, please watch the short video above.
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