ITB’s direct competitor, the SPDR S&P Homebuilders ETF (NYSEArca: XHB), is up 4.7% over the past month. XHB is an equal-weight ETF and while it does hold shares of homebuilders, it also mixes in derivatives plays like USG (NYSE: USG), Lumber Liquidators (NYSE: LL), Whirlpool (NYSE: WHR) and Pier One (NYSE: PIR). That provides the ETF some exposure to the retail side of residential real estate, making the fund a discretionary play as well. [Big Differences Between Homebuilders ETFs]
“Look for ITB to hold above the 200-day MA at the very least. A breakdown below this level would suggest that the pattern needs more time to develop (or could be breaking down). The 20-day EMA crossed back above the 50-day MA and the 50-day MA has flattened out, which are both positive signs,” added Wagner.
iShares U.S. Home Construction ETF
ETF Trends editorial team contributed to this post.