Advertisement
UK markets open in 1 hour 6 minutes

  • NIKKEI 225

    38,393.09
    +840.93 (+2.24%)
     

  • HANG SENG

    17,183.14
    +354.21 (+2.10%)
     

  • CRUDE OIL

    83.49
    +0.13 (+0.16%)
     

  • GOLD FUTURES

    2,341.10
    -1.00 (-0.04%)
     

  • DOW

    38,503.69
    +263.71 (+0.69%)
     

  • Bitcoin GBP

    53,591.78
    +172.51 (+0.32%)
     

  • CMC Crypto 200

    1,437.84
    +23.08 (+1.63%)
     

  • NASDAQ Composite

    15,696.64
    +245.33 (+1.59%)
     

  • UK FTSE All Share

    4,378.75
    +16.15 (+0.37%)
     
Money:

What is the true cost of the UK state pension?

To get a sense of the true value of the state pension, you can look at how much you would need to save to match it yourself

What Investors Need to Know About Homebuilding ETFs Post Irma

Neena Mishra
Updated

Homebuilding and construction stocks and ETFs have been in focus in the aftermath of Hurricanes Harvey and Irma. They are expected to benefit from substantial rebuilding work required in areas affected by these massive storms.

Homebuilding ETFs have done pretty well this year as the housing market got a boost from improving jobs market, rising wages and low interest rates.

There are three ETF focused on homebuilding and construction, and while their names may sound similar, they are actually quite different from one another.

iShares Dow Jones US Home Construction ETF (ITB)

ITB, the most popular ETF in the space, is market-cap weighted. About two-thirds of its portfolio is allocated to homebuilders. Top three holdings--DR Horton (DHI), Lennar (LEN) and NVR (NVR)—account for about one-third of the portfolio.

ADVERTISEMENT

It has an expense Ratio of 0.44%.

SPDR S&P Homebuilders ETF: (XHB)

XHB is modified equal weighted, selecting its holdings by their market-cap and then equally weighting them in the portfolio.  Homebuilding and Building Products industries get about one-third allocation each in the portfolio.

The fund has an expense ratio of 0.35%.

PowerShares Dynamic Building & Construction Portfolio (PKB)

PKB is a smart beta ETF that evaluates companies on a variety of investment merit criteria, including price momentum, earnings momentum, quality and value.

Currently, the portfolio has 27% allocation to Homebuilding, 14% to Construction & Engineering and 13% to Construction Materials.

The product is a bit pricey with an expense ratio of 0.63%.

To learn more about these ETFs, please watch the short video above.

One Simple Trading Idea

Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.

This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.

Learn more >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Home Depot, Inc. (The) (HD) : Free Stock Analysis Report
 
Lennar Corporation (LEN) : Free Stock Analysis Report
 
D.R. Horton, Inc. (DHI) : Free Stock Analysis Report
 
NVR, Inc. (NVR) : Free Stock Analysis Report
 
SPDR-SP HOMEBLD (XHB): ETF Research Reports
 
ISHARS-US HO CO (ITB): ETF Research Reports
 
PWRSH-DYN BLDG (PKB): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report