construction

BTC iShares U.S. Home Construction ETF Targets $85 Ahead of 2022

The infrastructure sector of the United States stock market has performed excellently this year as President Biden focuses on rebuilding the country.

ITB has had an Excellent Year

The BTC iShares U.S. Home Construction ETF (ITB) is one of the best-performing funds in its sector so far this year. Over the past few months, the fund has added more than 40% to its value, outperforming numerous funds in the sector.

ITB is a passively managed exchange-traded fund that has been around since 2006. It is managed by Blackrock and has more than $3 billion in assets under management, making it one of the largest ETFs attempting to match the performance of the Industrials – Engineering and Construction segment of the U.S. stock market. Before fees and expenses, the fund is designed to match the performance of the Dow Jones U.S. Select Home Construction Index.

Meanwhile, the index it tracks is a subset of the Dow Jones U.S. Household Goods Index. The Dow Jones U.S. Select Home Builders Index is a free-float adjusted market capitalization-weighted index that measures the performance of the home construction sector of the U.S. stock market.

The fund invests heavily in the Consumer Discretionary sector as it accounts for 78% of its portfolio. Industrials and Materials make up the top three.

ITB Could Hit the $85 Mark Soon

Following its rally since the start of the year, the BTC iShares U.S. Home Construction ETF could rally towards the $85 mark over the coming days or weeks. The annual operating expenses for this ETF are 0.41, which is similar to most ETFs in this sector. Furthermore, the fund has a 12-month trailing dividend yield of 0.38%.

ITB’s RSI is heading towards the oversold region. Source: FXEMPIRE

ITB’s technical indicators show that the fund is currently performing excellently. The MACD line is well above the neutral zone, indicating a positive trend in its performance. The RSI of 61 shows that it is heading into the overbought region. At press time, ITB is trading above its 50-day moving average of $76.26

ITB has a beta of 1.42 and a standard deviation of 36.65% for the trailing three-year period. As such, it is a high-risk choice in the space.