Althought PKB is overlooked compared to its rivals, the SPDR S&P Homebuilders ETF (NYSEArca: XHB) and the iShares U.S. Home Construction ETF (NYSEArca: ITB), the PowerShares offering has some advantages.
First, PKB has the largest weight to Home Depot of the three homebuilders ETFs. Second, the ETF resides just 5.7% below its all-time high. ITB would need to nearly double to reclaim its pre-financial crisis highs while XHB would need to add nearly 41% to do the same. Home Depot is a top-10 holding in 15 ETFs, according to S&P Capital IQ data.
PowerShares Dynamic Building & Construction ETF
ETF Trends editorial team contributed to this article.