For example, ITB has greater exposure to “Homebuilders, pure” than XHB, which has names among its top ten weightings that are more associated with home furnishings or appliances such as WHR, LEG, and HD for example.

FLM, as noted in its fund name, has a focus on Engineering as well as Homebuilders, and if you examine the top few holdings inside of it, this is apparent, as is its global scope and exposure (whereas ITB and XHB have 96-98% of their assets invested in U.S. based companies).

FLM carries sizable weightings to Europe (>30%) and Japan (>25.9%) and has exposure to lesser known companies in the form of ordinary shares.

Given the volatility in the past month or so in the greater Homebuilders/Construction space we would think that leveraged/inverse Bull and Bear funds would thrive and have a potential audience here, but we do not see any alternatives here currently offered by issuers.

iShares U.S. Home Construction ETF

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