The iShares U.S. Home Construction ETF (ITB), a passively managed Blackrock fund with over $3.1 billion in assets, tracks the Dow Jones U.S. Select Home Construction Index and features a 0.38% expense ratio. Despite its competitive cost, the ETF carries a Zacks ETF Rank of 4 (Sell) due to its high risk profile, evidenced by a beta of 1.31 and 27.65% standard deviation, and concentrated holdings with the top 10 accounting for 67.67% of assets. Performance as of 10/09/2025 shows a 1.78% YTD gain but a 15.35% one-year decline, prompting consideration of alternatives like the Vanguard Consumer Discretionary ETF (VCR) or Consumer Discretionary Select Sector SPDR ETF (XLY), which offer lower expense ratios.
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ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. If you wish to go to ZacksTrade, click OK. If you do not, click Cancel. Should You Invest in the iShares U.S. Home Construction ETF (ITB)? Read MoreHide Full Article Launched on May 1, 2006, the iShares U.S. Home Construction ETF (ITB - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Consumer Discretionary - Broad segment of the equity market. While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency. Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%. Index Details The fund is sponsored by Blackrock. It has amassed assets over $3.1 billion, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. ITB seeks to match the performance of the Dow Jones U.S. Select Home Construction Index before fees and expenses. The Dow Jones U.S. Select Home Construction Index comprises of U.S. equities in the home construction sector. Costs Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio. Annual operating expenses for this ETF are 0.38%, making it one of the cheaper products in the space. It has a 12-month trailing dividend yield of 0.55%. Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis. This ETF has heaviest allocation in the Consumer Discretionary sector -- about 80.3% of the portfolio. Industrials and Materials round out the top three. Looking at individual holdings, D R Horton Inc (DHI) accounts for about 16.26% of total assets, followed by Lennar A Corp Class A (LEN) and Pultegroup Inc (PHM).The top 10 holdings account for about 67.67% of total assets under management. Performance and Risk The ETF has added roughly 1.78% and is down about 15.35% so far this year and in the past one year (as of 10/09/2025), respectively. ITB has traded between $85.52 and $129.34 during this last 52-week period. The ETF has a beta of 1.31 and standard deviation of 27.65% for the trailing three-year period, making it a high risk choice in the space. With about 50 holdings, it has more concentrated exposure than peers. Alternatives iShares U.S. Home Construction ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. ITB, then, is not the best option for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. However, there are better ETFs in the space to consider. Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $6.38 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $24.05 billion. VCR has an expense ratio of 0.09%, and XLY charges 0.08%. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Boost Your Portfolio with Our Top ETF Insights Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week. Don’t miss out on this valuable resource. It’s free! Image: Bigstock Should You Invest in the iShares U.S. Home Construction ETF (ITB)? Launched on May 1, 2006, the iShares U.S. Home Construction ETF (ITB - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Consumer Discretionary - Broad segment of the equity market. While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency. Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%. Index Details The fund is sponsored by Blackrock. It has amassed assets over $3.1 billion, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. ITB seeks to match the performance of the Dow Jones U.S. Select Home Construction Index before fees and expenses.The Dow Jones U.S. Select Home Construction Index comprises of U.S. equities in the home construction sector. Costs Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.38%, making it one of the cheaper products in the space. It has a 12-month trailing dividend yield of 0.55%. Sector Exposure and Top Holdings ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation in the Consumer Discretionary sector -- about 80.3% of the portfolio. Industrials and Materials round out the top three. Looking at individual holdings, D R Horton Inc (DHI) accounts for about 16.26% of total assets, followed by Lennar A Corp Class A (LEN) and Pultegroup Inc (PHM).The top 10 holdings account for about 67.67% of total assets under management. Performance and Risk The ETF has added roughly 1.78% and is down about 15.35% so far this year and in the past one year (as of 10/09/2025), respectively. ITB has traded between $85.52 and $129.34 during this last 52-week period.The ETF has a beta of 1.31 and standard deviation of 27.65% for the trailing three-year period, making it a high risk choice in the space. With about 50 holdings, it has more concentrated exposure than peers. Alternatives iShares U.S. Home Construction ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. ITB, then, is not the best option for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. However, there are better ETFs in the space to consider.Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $6.38 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $24.05 billion. VCR has an expense ratio of 0.09%, and XLY charges 0.08%. Bottom Line To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF Insights Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week. Don’t miss out on this valuable resource. It’s free! Get it now >> The iShares U.S. Home Construction ETF (ITB), a passively managed fund by Blackrock with over $3.1 billion in assets, aims to track the Dow Jones U.S. Select Home Construction Index. It features an annual operating expense ratio of 0.38%, which is considered competitive within its sector, and has a 12-month trailing dividend yield of 0.55%. Despite its low cost, ITB is characterized by a high-risk profile, indicated by a beta of 1.31 and a standard deviation of 27.65% over the trailing three-year period. Its portfolio shows significant concentration, with 80.3% allocated to the Consumer Discretionary sector, and the top 10 holdings, including D R Horton (DHI) at 16.26%, collectively constituting 67.67% of assets. Performance metrics as of October 9, 2025, reveal a 1.78% year-to-date gain but a notable 15.35% decline over the past year. This underperformance, combined with its concentrated exposure and elevated risk, contributes to ITB receiving a Zacks ETF Rank of 4 (Sell), suggesting it falls short as an optimal choice for investors seeking broad exposure to the Consumer Discretionary segment. Alternatives such as the Vanguard Consumer Discretionary ETF (VCR) and the Consumer Discretionary Select Sector SPDR ETF (XLY) are presented as potentially superior options. These ETFs offer significantly lower expense ratios of 0.09% and 0.08%, respectively, and manage substantially larger asset bases of $6.38 billion and $24.05 billion, which may appeal to investors prioritizing cost efficiency and broader market coverage.
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