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Homebuilding ETF (ITB) Hits New 52-Week High

Investors seeking momentum may have iShares U.S. Home Construction ETF ITB on radar now. The fund recently hit a new 52-week high. Shares of ITB are up approximately 138.3% from their 52-week low of $29.90/SHARE.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

ITB in Focus

The underlying Dow Jones U.S. Select Home Builders Index is a subset of the Dow Jones U.S. Household Goods Index. It is a free-float adjusted market capitalization-weighted index. It measures the performance of the home construction sector of the U.S. equity market.The expense ratio is 0.42% (see all industrials ETFs here).

Why the move?

New home sales increased 8.2% year over year in February and existing homes sales were also up 9.1%, suggesting robust times for the homebuilding industry. Plus, rates have fallen last week. Both factors have boosted the demand for homebuilding ETFs like ITB.

More Gains Ahead?

The fund has a positive weighted alpha of 108.35. So, there is a decent outlook ahead for those who want to ride this surging ETF a shade further.

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